Trump suggests trade deals would end if US govt loses tariff case in Supreme Court

While speaking to reporters at the White House, Trump said he would ask the Supreme Court to strike down a US appeals court ruling last week that adjudged his tariffs as illegal. Trump said he thinks his administration will prevail in the apex court.

“We made a deal with the European Union where they’re paying us almost a trillion dollars. And you know what? They’re happy. It’s done. These deals are all done. I guess we’d have to unwind them,” Trump said in the Oval Office on Wednesday. The US president indicated that America will “suffer so greatly if we don’t win that case”.

In contrast to Trump’s suggestion that rescinding the trade tariffs would cost America, trade experts highlighted that the duties are paid by importers in the US, not companies in the countries of origin. Economists have warned that Trump’s tariff gamble is likely to surge inflation in America.

The appeals court ruling last week addressed the legality of Trump’s “reciprocal tariffs”, which were first imposed in April as part of trade war, and a separate set of tariffs imposed in February against China, Canada and Mexico.

However, the appeals court verdict on Trump’s tariffs doesn’t impact tariffs issued under other legal authority, such as those on steel and aluminum imports.

(with inputs from Reuters)