Trump sounds alarm on trade deals as tariff case heads to Supreme Court

President Donald Trump warned that the United States may be forced to “unwind” major trade deals with the European Union, Japan, and South Korea if the Supreme Court upholds a lower court decision deeming several of his administration’s tariffs illegal.

Speaking to reporters at the White House, Trump said his administration would seek to overturn last week’s US Court of Appeals ruling, which found that many of the tariffs imposed during his presidency violated legal procedures, Reuters reports.

"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 marks Trump’s first direct suggestion that the bilateral trade deals negotiated separately from the tariffs could be nullified if the Supreme Court allows the ruling to stand.

"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 added.

The appeals court ruling focused on Trump’s so-called “reciprocal” tariffs introduced in April, as well as separate levies targeting China, Canada, and Mexico. These were challenged for lacking legal authority under existing trade laws. However, the decision does not affect tariffs imposed under separate provisions, such as those covering steel and aluminum imports.

Trade experts noted that the economic impact of rescinding tariffs may be overstated. “The president’s announcement today that the deals could be unwound reflects an effort to maximize leverage on the US side,” said Ryan Majerus, a former senior trade official now at King & Spalding.

Democratic lawmakers criticized the mixed messaging. “The Trump administration can’t get its story straight about whether its trade deals will hold any water if the tariffs are struck down," said Senator Ron Wyden, the top Democrat on the Senate Finance Committee.

The Supreme Court’s 6-3 conservative majority may improve Trump’s chances, but legal analysts caution that the case is unprecedented and difficult to predict.

By Vafa Guliyeva