'We're screwed if...': Trump warns ahead of Supreme Court ruling
What's the story
United States President Donald Trump has warned of dire consequences if the Supreme Court rules against his tariffs. In a post on Truth Social, Trump said the US would be forced to repay "many hundreds of billions of dollars" in tariffs already collected from companies, adding that the amount doesn't include "payback" from countries and companies for investments made to avoid tariffs. "In other words, if the Supreme Court rules against the United States of America...WE'RE SCREWED!" he stated.
Financial implications
Trump warns of 'Trillions of dollars' in potential payback
Trump said the total amount, including investments to avoid tariffs, could reach "Trillions of Dollars." He called it a "complete mess" and said it would be nearly impossible for the US to pay. The court is expected to release opinions on Wednesday on whether Trump's use of emergency powers for tariffs is legal. During oral arguments, justices were skeptical about his authority under the International Emergency Economic Powers Act (IEEPA) to impose "reciprocal" tariffs on trading partners.
Tariff controversy
Supreme Court's decision could impact Trump's tariffs
The court's decision will not affect sector-specific tariffs on steel, aluminum, and automobiles, as these were imposed under different legal authorities. If the court rules against him, Trump plans to revive reciprocal tariffs under new justifications, but would still have to repay around $150 billion, according to the New York Post. The case in question is Learning Resources v. Trump, a consolidated case, which questions whether Trump's tariffs under IEEPA are an unconstitutional tax.
Repayment concerns
Treasury Secretary downplays potential repayment hurdles
Treasury Secretary Scott Bessent has downplayed concerns over repayments, saying the Treasury has enough cash on hand. "It won't be a problem if we have to do it," he said, instead emphasizing that any potential repayment could be a "corporate boondoggle," Reuters reported. The Supreme Court's decision could potentially impact US trade policies and international relations, including levies targeting Mexico, Canada, and China over their alleged roles in illicit drug flows.