President Donald Trump warned on Monday that a record $15 trillion in planned investment in the U.S. would be "immediately cancelled" if courts are permitted to strike down his tariff policies.
U.S. Appeals Court Rules Tariffs As Unconstitutional
In a fiery post on his Truth Social platform, he claimed that the loss of these tariffs would devastate the American economy, stating, "we would become a Third World Nation, with no hope of GREATNESS again."
The declaration comes in response to a recent U.S. appeals court ruling that deemed his administration's broad use of tariffs unconstitutional.
On Friday, the U.S. Court of Appeals for the Federal Circuit decided in a 7-4 vote that Trump had overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to impose the levies.
The tariffs are set to remain in effect until Oct. 14 to allow for an appeal to the Supreme Court.
About $15 Trillion In Investment To Be Lost?
In his social media post, Trump directly linked the massive investment figure to his trade policy.
"More than 15 Trillion Dollars will be invested in the USA, a RECORD. Much of this investment is because of Tariffs," he wrote.
"If a Radical Left Court is allowed to terminate these Tariffs, almost all of this investment, and much more, will be immediately cancelled! TIME IS OF THE ESSENCE!!!"
Executive Authority Versus Economic Consideration
The court's ruling is focused on executive authority rather than the economic merits of tariffs. The majority opinion stated that the Emergency Powers Act does not explicitly grant a president the authority to levy tariffs.
Economist Justin Wolfers commented on the decision, noting, "It does not ban tariffs. It simply says that you have to convince Congress."
The president has consistently maintained that tariffs bring in “trillions” of dollars, a figure disputed by independent fact-checkers, and are crucial for making America "STRONG and RESPECTED AGAIN!!!"
Price Action
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Friday. The SPY was down 0.60% at $645.05, while the QQQ declined 1.16% to $570.40, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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