U.S. President Donald Trump warned that if he loses in the Supreme Court case regarding the legality of the 'reciprocal tariff,' it could invalidate major trade agreements made with the European Union (EU) and Korea. He is appealing a lower court ruling that found his tariff policy illegal while using the potential for significant economic disruption as leverage to pressure the Supreme Court.
According to Reuters, President Trump met with reporters on the 3rd (local time) during a meeting with Polish President Karol Nawrocki at the White House, stating, "The administration will appeal to the Supreme Court against the appellate court's decision last week that ruled many tariffs illegal," and added, "This lawsuit is one of the most important Supreme Court cases I have ever seen."
Previously, the U.S. Court of Appeals ruled on the 29th of last month that the International Emergency Economic Powers Act (IEEPA), which President Trump cited as the basis for imposing tariffs, grants the president the authority to 'regulate' imports, but does not include the authority to directly 'levy' tariffs through executive orders. It was a ruling that effectively undermined the legal basis of the Trump administration's trade policies. However, the court suspended the ruling's effectiveness until the 14th of next month to allow the administration's appeal.
President Trump reiterated how critical this lawsuit is. He claimed, "If we lose that case, Korea will suffer tremendously, tremendously," adding, "Korea has a chance to become phenomenally, phenomenally wealthy again, but it could also become phenomenally poor again."
In particular, he noted that the tariff policy had been the key driving force behind trade agreements with major trading partners such as the EU, Korea, and Japan. He stated that if he loses, all these agreements could be at risk. President Trump said, "We have signed agreements with the European Union that will give us almost $1 trillion," and indicated, "These agreements will all be over. I think we will have to reverse them (if we lose the lawsuit)." He added, "We have entered into agreements with Japan, Korea, and several other countries, and we are set to sign with others as well."
President Trump's remarks this time are interpreted as a blatant pressure tactic directed at the Supreme Court, which holds the ultimate decision-making authority. Experts analyzed that he intends to exaggerate the economic and diplomatic ramifications that a ruling nullifying the tariffs would cause in order to influence judicial rulings. Reuters noted, "This is the first time President Trump has mentioned that losing the tariff lawsuit could invalidate existing trade agreements."