U.S. President Donald Trump intensified his rhetoric in response to a federal appeals court ruling. When the court raised concerns that key trade policies of the Trump administration, the reciprocal tariff, might be illegal, he directly rebutted, saying, "Without tariffs, the U.S. would have been destroyed." President Trump also continued to pressure the judiciary by naming a specific judge who dissented from the ruling.
On the 31st (local time), President Trump stated on the social media platform Truth Social, "If it weren't for tariffs and the trillions of dollars we have already collected, Korea would have been completely destroyed, and military power would have been immediately eliminated." He criticized, saying, "The radical left judges ignored this with a 7 to 4 opinion." He added, "One Democratic judge appointed by (Barack) Obama voted to save our country," expressing gratitude for "that courage."
Earlier, on the 29th, the U.S. Court of Appeals ruled that most of Trump's reciprocal tariffs were illegal. This ruling, made with a 7 to 4 opinion, concluded that the president does not have the legal authority to impose tariffs based on the International Emergency Economic Powers Act (IEEPA). The IEEPA allows the president to impose specific economic sanctions in response to a national security emergency. However, it does not extend to the setting of tariffs, which is a power exclusive to Congress. The court has suspended the effect of the ruling until October 14, leaving open the possibility of an appeal to the Supreme Court.
Some media outlets noted that President Trump's claim about "trillions of dollars" in tariff revenue might be somewhat exaggerated. According to data released by the U.S. Department of the Treasury on the 28th of last month, the total tariff revenue for the current fiscal year is $183.1 billion (about 250 trillion won). This figure represents an increase in the four months since the Trump administration fully implemented tariffs in April. However, it is far from "trillions of dollars." U.S. think tanks, such as the Tax Foundation and the Committee for a Responsible Federal Budget, predicted that if current tariff policies are maintained, they could generate $2.5 trillion and $2.8 trillion in revenue over the next decade, respectively. Trump's statement is interpreted as referring to these long-term projections as current performance.
Legally, tariffs are taxes that importers must pay to the federal government. Importers often reflect the increased costs from tariffs in the prices of goods, meaning that the final burden falls on U.S. consumers. Some financial institutions, including JPMorgan Chase, have warned that tariffs could drive up consumer prices in the U.S. However, Jerome Powell, chair of the Federal Reserve, indicated last month that the effects of tariffs on the economy and inflation should still be monitored.
The Trump administration intends to challenge the court ruling and seek a final decision from the Supreme Court. Peter Navarro, White House Trade Advisor, directly attacked the judiciary after the ruling, referring to them as "politicians in black robes." He claimed that the minority dissenting opinion "has laid out a clear path for the Supreme Court to issue a ruling in our favor." The lawsuit was filed by a coalition of Democratic-led state governments and small import businesses.
Scott Bessent, Secretary of the Treasury, projected that tariff revenue would "significantly" exceed the initial estimate of $300 billion for this year. He mentioned that some of the increased tariff revenue could be used to reduce the national debt, which is approaching $37 trillion. He stated, "The president and I are focused on reducing the debt," adding, "We will lower the deficit ratio and start paying down the debt."