The Art of the Appeal

President Trump's second-term agenda has encountered significant legal scrutiny, with over 200 lawsuits filed against his executive actions. 

The ongoing legal battles underscore the tension between executive ambition and constitutional constraints. As cases progress, the outcomes will significantly influence the scope of presidential authority and the future of key policy initiatives.

Our Alternative Futures team has outlined the following key legal challenges to Trump’s actions:

• Tariffs: The U.S. Court of International Trade blocked Trump's "Liberation Day" tariffs, ruling they exceeded presidential authority under the International Emergency Economic Powers Act. The appeals court paused that ruling, with hearings beginning this week.

• Law firm sanctions: Executive orders targeting firms like WilmerHale and Perkins Coie for alleged political bias were overturned. Judges cited First Amendment violations and abuse of power.

• Birthright citizenship: Efforts to end birthright citizenship have been blocked by multiple federal courts, citing violations of the 14th Amendment. The Supreme Court heard arguments on this issue last month and is due to rule soon.

• Transgender military ban: Initially halted by lower courts, the ban was later reinstated by the Supreme Court while litigation continues.

• DEI program restrictions. Executive orders limiting diversity, equity and inclusion initiatives have faced lawsuits from civil rights groups. Rulings have been mixed, with some injunctions lifted on appeal.

A federal appeals court will begin hearings this week on the legality of President Trump’s 2025 tariff plan. On May 28, the U.S. Court of International Trade issued a permanent injunction after ruling the administration exceeded executive authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose a 10% universal tariff. The ruling was quickly stayed, keeping the tariffs in place pending appeal.

The economic impact of these tariffs remains contested. Markets rallied after the injunction, signaling relief among affected industries – but the Penn Wharton Budget Model projects long-term damage if tariffs persist, including a 6% GDP decline, a 5% wage drop and a $22,000 lifetime purchasing power loss for households. 

Meanwhile, supporters cite a 2025 report from the Coalition for a Prosperous America, claiming the tariffs have boosted domestic investment in critical sectors like steel and semiconductors. They argue there’s evidence of reshoring trends and job gains in protected industries.

Regardless of court rulings, President Trump will continue seeking ways to drive economic policy using tariffs. The administration is prepared to escalate the case to the Supreme Court and is exploring alternative legal tools. Meanwhile, officials are exploring targeted tariffs under existing trade agreements while House Republicans are quietly discussing legislative options to codify broader tariff powers.

Elon Musk’s turbulent 130-day stint as head of the Department of Government Efficiency (DOGE) has ended, capping off one of the most controversial chapters in U.S. governance. His high-profile tenure as special advisor to President Trump revealed the challenges of applying private-sector strategies to public institutions bound by legal constraints, democratic accountability and competing social obligations.

Upon his departure, Musk cited frustration with legal constraints and bureaucratic resistance that hindered his aggressive cost-cutting vision. Behind the scenes, insiders point to growing backlash over perceived conflicts of interest, favoritism toward his companies and much smaller “savings” than the administration had promised.

Trump initially praised Musk’s impact, calling it “the most sweeping and consequential government reform program in generations” and insisting Musk would remain informally involved. However, the relationship has recently taken a turn, in a dramatic public feud that marks a definitive break.

Critics from across the political spectrum argue Musk’s reforms came at a steep cost, gutting essential services like Social Security processing, affordable housing, disaster relief, global public health and veterans’ benefits. Lawsuits from unions and public interest groups are challenging the legality of mass firings and agency closures.

The political backlash has also impacted Musk’s business empire. Tesla faced boycotts, a 71% profit drop and a 49% plunge in European sales. Investors questioned his focus and leadership, leading to speculation about his future as CEO.

To learn more, reach out to FGS Global’s Alternative Futures team at AlternativeFutures@fgsglobal.com.