Trump says future of US trade deals in jeopardy as country awaits crucial Supreme Court tariff ruling
U.S. President Donald Trump stated on Wednesda that the United States might be forced to “unwind” trade deals with entities such as the European Union, Japan, and South Korea if the Supreme Court rules against his administration in an ongoing tariff case.
He warned that a loss in this case could lead the United States to “suffer so greatly.”
This declaration follows a U.S. appeals court ruling last week that deemed many of Trump’s tariffs illegal, asserting that he exceeded his authority in imposing them.
Trump indicated that his administration would appeal this decision to the Supreme Court, expressing confidence in a favorable outcome. He emphasized the significance of the case, calling it “one of the most important cases I’ve ever seen go before the Supreme Court of the US.”
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Trump argued that the tariffs provided leverage for striking trade deals, allowing the U.S. to levy import duties without significant retaliation, which he believes has given the country “a chance to be unbelievably rich again.”
He cited a deal with the European Union, claiming they are “paying us almost a trillion dollars” and are “happy.”
However, trade experts and economists offer a contrasting view.
They highlight that the duties are primarily paid by importers within the U.S., not by companies in the countries of origin. Economists have also warned that Trump’s tariff policies are likely to contribute to increased inflation in the United States.
The appeals court ruling specifically addressed the legality of Trump’s “reciprocal tariffs,” which were initially imposed in April as part of a trade war, and a separate set of tariffs implemented in February against China, Canada, and Mexico.
It is important to note that this ruling does not affect tariffs issued under other legal authorities, such as those on steel and aluminum imports.
Ryan Majerus, a former senior U.S. trade official, commented that the trade deals with the EU and other partners were always understood as framework agreements subject to change, rather than fully established trade agreements.
U.S. Senator Ron Wyden, a prominent Democrat on the Senate Finance Committee, stated that Trump’s comments have only added to the existing confusion.
