Tuesday, 02 January 2024 12:17 GMT

Trump warns of ‘national security catastrophe’ if tariffs overturned


(MENAFN) US President Donald Trump has cautioned that the United States could face a “national security catastrophe” if the tariffs he imposed on major trading partners are struck down by the Supreme Court.

Trump introduced the tariffs in April, arguing that they were a “reciprocal” response to what he described as unfair trade practices by other nations. He cited the 1977 International Emergency Economic Powers Act (IEEPA) as legal justification, claiming it granted him authority to regulate trade during a national emergency. Critics, however, have argued that the move risks damaging the US economy and exceeds presidential powers.

Earlier this year, the US Court of Appeals ruled that Trump had overstepped his authority under the IEEPA, asserting that only Congress has the power to impose such broad trade restrictions.

The court stopped short of rescinding the tariffs, pending a Supreme Court review.

In a message posted on Truth Social, Trump warned that overturning the tariffs could have severe financial and security implications. “The actual number we would have to pay back in tariff revenue and investments would be in excess of $2 trillion, and that, in itself, would be a national security catastrophe,” he wrote, without clarifying the basis for his estimate.

According to previous statements from US trade officials, the tariffs have so far brought in about $100 billion in revenue. During recent Supreme Court hearings, justices debated whether the IEEPA gives the president the power to impose tariffs, noting that while the act allows for restrictions on trade, it does not explicitly mention duties.

Some justices acknowledged potential complications if the tariffs are overturned, with Justice Amy Coney Barrett warning that it “could be a mess” to handle refund claims from importers.

The Supreme Court’s decision is expected by July 2026, at the close of its current term.

MENAFN11112025000045017640ID1110326380



MENAFN

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search