Donald Trump Warns U.S. May “Unwind” Trade Deals if Supreme Court Rules Against Tariffs

Washington, D.C. — Former U.S. President Donald Trump issued a sharp warning on Wednesday, saying that the United States might need to “unwind” trade agreements with the European Union, Japan, South Korea, and other nations if the Supreme Court upholds a recent appeals court decision against his tariffs.

Speaking at the White House, Trump argued that losing the case could cause the country “to suffer so greatly.”

The warning follows a U.S. appeals court ruling that many of Trump’s tariffs were unlawful. His administration plans to challenge the decision, expressing confidence that the Supreme Court — with its conservative-leaning majority — would ultimately rule in his favor.

“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,” Trump said. “I guess we’d have to unwind them.”

This marked the first time Trump has suggested that trade agreements negotiated separately from the tariffs could be invalidated if the Supreme Court sides with the appeals court ruling.

Economic Concerns and Expert Views

Trump claimed that reversing the tariffs would be financially devastating. However, trade experts stress that tariffs are paid by U.S. importers, not foreign companies, often driving up domestic inflation instead.

“Our country has a chance to be unbelievably rich again. It could also be unbelievably poor again. If we don’t win that case, our country is going to suffer so greatly, so greatly,” Trump cautioned.

The appeals court ruling addressed the legality of Trump’s so-called “reciprocal” tariffs, first imposed in 2018 during his trade war, as well as tariffs placed in 2019 on China, Canada, and Mexico. It does not affect tariffs under other authorities, such as those on steel and aluminum imports.

Trade lawyers believe Trump’s comments are partly strategic, aimed at convincing the Supreme Court that rescinding the tariffs would unleash economic instability.

Ryan Majerus, a former senior U.S. trade official now with law firm King & Spalding, noted that Trump’s remarks highlighted the fragility of these deals:

“The president’s announcement today that the deals could be unwound reflects an effort to maximize leverage on the U.S. side,” Majerus said.

Legal and trade analysts suggest the Supreme Court’s 6-3 Republican-appointed majority may improve Trump’s odds of preserving some of the tariffs. Still, they caution that the unprecedented nature of the challenge makes the outcome uncertain.

With both domestic inflation and international relations at stake, the Supreme Court’s decision could have far-reaching consequences for U.S. trade policy and economic stability.