Trump warns of US$3 trillion economic blow if Supreme Court strikes down tariffs

WASHINGTON: U.S. President Donald Trump on Tuesday (November 11) warned of significant economic and national security consequences if the U.S. Supreme Court were to rule against his use of emergency powers to implement wide-ranging tariffs on imports.

AI Brief

Trump defends using emergency powers to impose global tariffs, warning of economic and security risks if blocked by the Supreme Court.
He proposes US$2,000 payments to lower- and middle-income Americans funded by tariff revenue, with the rest used to reduce national debt.
A ruling against Trump could force the US to refund billions to businesses and reshape presidential authority over trade policy.

In a post on Truth Social, Trump said the potential "unwind" of the tariffs would involve "in excess of US$3 trillion" when factoring in investments and repayments, calling it "an insurmountable National Security Event."

"That would truly become devastating to the future of our Country – Possibly non-sustainable!" Trump added.

The Supreme Court case marks a critical test of the legality of Trump's unilateral tariff measures, which were enacted during his presidency and affected a vast swath of global trading partners. Trump's administration justified the tariffs under emergency powers, citing economic and national security considerations.

Trump said his tariff program had generated funds, part of which his administration proposed using for direct payments of US$2,000 to low- and middle-income Americans, while allocating the remainder to reduce the national debt. He also credited the tariffs for contributing to what he described as declines in inflation, particularly in food and energy prices.

The case has drawn intense scrutiny from economists, businesses, and trade experts, with potential implications for U.S. economic policy and international trade relations.