U.S. President Trump stated on the 3rd that if the Supreme Court ultimately rules that the administration’s heavy tariffs on foreign countries are illegal, the U.S. may have to revoke multiple trade agreements, including those with the European Union, Japan, and South Korea, which would cause the U.S. immense losses.
On August 29, the U.S. Federal Court of Appeals ruled that most of the retaliatory tariffs imposed by Trump on other countries are illegal.
Speaking to the media at the White House, Trump said his administration would ask the Supreme Court to overturn the Federal Court of Appeals’ ruling.
He said: “We reached an agreement with the EU, and they will pay us nearly $1 trillion. You know what? They are happy about it… These agreements have all been reached, but now I think we must undo them.”
This is the first time Trump has clearly indicated that if the Supreme Court upholds the Federal Court of Appeals’ decision, the trade agreements reached with major trading partners may become invalid.
Trump also warned that removing tariffs would come at a steep price.
He wrote: “Our country has the chance to become incredibly prosperous again, but could also become incredibly poor again. If we lose this case, our country will suffer tremendous losses.”