Trump warns of trade deal rollback

US President Donald Trump warned the United States could be forced to “unwind” trade deals with partners including the European Union, Japan and South Korea if the Supreme Court upholds an appeals court ruling that found many of his administration’s tariffs unlawful. Speaking at the White House, Trump said he will ask the Supreme Court to reverse the decision and expressed confidence the court will rule in his favor, arguing that losing the case would cause the country to “suffer so greatly.”

The dispute centers on the administration’s use of emergency authority under the International Emergency Economic Powers Act (IEEPA) to impose broad “reciprocal” tariffs and other duties. A federal appeals court ruled that the wide application of IEEPA exceeded presidential authority and declared those tariffs illegal; that ruling has been temporarily stayed, leaving the duties in effect while the legal process continues. The administration has sought expedited Supreme Court review. Observers note the court’s conservative majority could affect outcomes, but predictability is limited given the unprecedented legal questions.

Economic consequences of a final defeat could be significant. The contested tariffs cover imports from countries such as China, Canada, Mexico, India and Brazil and have generated substantial revenue. If struck down, importers might seek refunds for duties already paid, potentially costing the Treasury billions and complicating federal finances. Trade experts point out that duties are paid by U.S. importers, not foreign exporters, and that changes to tariff policy could ripple through supply chains, pricing and markets. Critics argue the tariffs raised consumer costs and market uncertainty without delivering promised manufacturing gains; supporters counter they strengthened negotiating leverage and helped secure separate trade deals.

Trump tied the tariffs to negotiated agreements with major partners, saying some deals were contingent on those measures and might need to be reversed if the tariffs fall. Legal analysts caution that nullifying independently negotiated trade agreements would be complex and diplomatically fraught, but the statement underscores the high political stakes.

Next steps hinge on the Supreme Court’s decision whether to hear the case and, if so, how swiftly.