Editor's Note: The headline has been corrected for accuracy.
President Donald Trump warned that the U.S. economy would face significant challenges if the Supreme Court rules against the majority of the tariffs imposed this year.
Trump Underscores Tariffs' Revenue, Leverage
Trump, in an interview with Maria Bartiromo on “Sunday Morning Futures,” stressed the significance of tariffs for both revenue and diplomatic influence. The president also stated that the trade deals with several countries have brought in investments of over $17 trillion into the U.S. economy.
He and other cabinet members have portrayed the potential tariff case outcome in dire terms. Earlier in August, Trump had suggested on Truth Social that the ruling could "literally destroy” the United States."
“If we don’t, we’ll be struggling for years to come,” Trump said, underscoring the potential long-term impact of a negative ruling. He also claimed that tariffs played a role in ending eight wars, including the conflict between India and Pakistan.
“I’ll have to figure something out. I don’t want to even think about it, we’re doing so well,” Trump said.
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Trump’s Past Warnings On Supreme Court Ruling
This is not the first time Trump has warned about the potential consequences of a Supreme Court ruling against his tariffs. In September, he stressed that such a decision could force the U.S. to “unwind” trade deals with the EU, Japan, and South Korea, leading to severe consequences for the country.
Trump also warned of a massive debt, amounting to “trillions and trillions of dollars,” if the Supreme Court nullifies his tariffs. He also expressed concerns about the potential economic impact on the stock market if the ruling does not go in his favor.
Backup Plan To Keep Trump Tariffs
Should the Supreme Court uphold the IEEPA ruling, it is estimated that around 70% of the imposed tariffs would be lifted. However, the administration has recently been utilizing other trade authorities, such as Section 232 sectoral tariffs and other back up plans to keep the tariffs in place to potentially mitigate the economic impact of a negative ruling.
The Trump administration had previously appealed an ‘illegal’ tariff ruling to the Supreme Court, urging for swift action.
Earlier, economist Peter Schiff had predicted that Trump's tariffs were likely to be declared ‘unconstitutional’ in the U.S. Appellate Court. This could lead to American importers recovering substantial sums already paid as tariffs, further complicating the economic scenario.
Price Action
On a year-to-date basis, 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, climbed 13.64% and 18.36%, each, 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.
