Legal wrangling over Donald Trump’s flagship tariff strategy is grabbing headlines, but investors should treat it as a distraction. The real story—the one that matters to markets and to anyone serious about building wealth—is the strength of corporate earnings and the resilience of the US economy.

Last week, a federal appeals court ruled that most of the President’s reciprocal tariffs, including the 10% blanket levy on imports, overstepped his emergency powers.

The judges upheld a May ruling from the Court of International Trade, rejecting the White House’s argument that the International Emergency Economic Powers Act provided legal cover. The tariffs remain in place until mid-October while the Supreme Court considers the case, but uncertainty now hangs over one of Trump’s most visible economic weapons.

To investors, it should be background noise.

Markets don’t live or die on courtroom battles; they run on fundamentals. Corporate America is still making money—and a lot of it.

The latest earnings season proved that in spades. The S&P 500 reported more than 9% year-on-year earnings growth in the second quarter of 2025, with over three-quarters of companies beating expectations.

This is not the sign of an economy in trouble. That’s the sign of a profit engine that remains world-class, with companies adapting, innovating, and expanding despite policy uncertainty.

Tech giants are still the headline-makers. Apple posted net income up 17% to $28.4 billion. Microsoft grew its cloud business by 21%. Amazon’s earnings rose 22%, powered by both its online retail and cloud services. These are staggering numbers, showing just how dominant US innovation remains.

Industrials are holding their ground as well. Caterpillar reported double-digit revenue gains thanks to surging global infrastructure demand. Consumer names like McDonald’s and Starbucks also beat consensus forecasts, a clear sign that Americans are still spending, despite constant media predictions of slowdown.

The broader economy tells the same story. GDP grew at an annualised 2.8% in Q2. Unemployment remains below 4%. Inflation has cooled to just above 2%, giving households more spending power. The basic picture is that the US economy is strong.

This is why investors need to stay disciplined.

Even if the courts dismantle these tariffs, it would be naïve to think the Trump administration will walk away from such a powerful fiscal lever.

The President has made it clear he is determined to secure what he sees as fairer terms of trade for American workers and companies. If tariffs are legally curtailed, alternative revenue mechanisms will be pursued. The White House is not going to surrender on this front.

Investors should factor this into their strategy: some form of levy or policy tool will remain in play. Rather than panicking, they should remember that America’s corporate sector has consistently shown the ability to absorb shocks and continue to deliver earnings.

History proves this point. Past tariff disputes—including those over steel and aluminium—caused temporary jitters but did not derail long-term equity performance. Markets quickly discounted the noise and returned to focusing on profitability.

This lesson matters now more than ever. The risk for investors today is not Trump’s tariff programme or its legal fate. The risk is overreacting to headlines and missing the real drivers of returns.

Businesses are making money. The economy is expanding. Valuations remain supported by earnings power. These are the facts that matter to anyone serious about building wealth.

Investors who let political or legal theatre dictate their strategy are likely to miss opportunities. Those who stay focused on quality names—companies with strong balance sheets, durable earnings streams, and global reach—will be best placed to capture upside.

Markets will always have political drama. They will always have legal battles. But wealth is built by those who can see beyond them to the fundamentals. That means keeping your eye firmly on corporate profitability and economic momentum, rather than chasing every headline.

Trump’s tariffs may face legal headwinds. But the US economy is not built on court filings. It is built on innovation, productivity, and the ability of American companies to deliver earnings year after year.

This is what counts, and where investors’ focus should remain.

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London-born Nigel Green is founder and CEO of deVere Group. Following in his father’s footstep, he entered the financial services industry as a young adult. After working in the sector for 15 years in London, he subsequently spent several years operating within the international space, before launching deVere in 2002 with a single office in Hong Kong. Today, deVere is one of the world’s largest independent financial advisory organizations, doing business in 100 countries and with more than $12bn under advisement. It specializes global financial solutions to international, local mass affluent, and high-net-worth clients. In early 2017, it was announced that deVere would launch its own private bank. In addition, deVere also confirmed it has received its own investment banking license.