Trump Warns US May Revisit Trade Deals with EU, Japan & South Korea if Tariff Case is Lost
Washington D.C. – President Donald Trump has stated the United States may be forced to ”unwind” trade agreements with the European Union, Japan, and South Korea, among others, should the Supreme Court rule against his governance in a pending case concerning tariffs. He warned a loss in the case would have devastating consequences for the US economy, stating the country “is going to suffer so greatly, so greatly.”
Speaking to reporters at the White House, Trump announced his administration will petition the Supreme Court to overturn a recent US appeals court decision that deemed many of his imposed tariffs illegal. Despite this, he expressed confidence in ultimately prevailing in the legal battle.
“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, adding, “I guess we’d have to unwind them.”
This marks the first time Trump has explicitly suggested the trade deals – negotiated separately from the tariffs themselves – could be invalidated if the appeals court ruling is upheld. The comments came as a photograph circulated showing Trump with European Commission President Ursula von der Leyen from July, when the EU deal was initially struck.
While Trump characterized rescinding the tariffs as costly, trade experts point out that the duties are paid by US importers, not foreign companies. Economists have also cautioned that tariffs are likely to contribute to inflation within the United States.The appeals court ruling specifically addressed the legality of “reciprocal” tariffs initially implemented in april as part of a trade war, as well as separate tariffs imposed in February against China, Canada, and Mexico. It does not affect tariffs issued under different legal authorities, such as those on steel and aluminum imports.
Ryan Majerus, a former senior US trade official, clarified that the agreements with the EU and other partners where always intended as framework agreements subject to modification, rather than fully comprehensive trade deals. He suggested Trump’s comments are “an effort to maximize leverage on the US side.”
Legal and trade analysts note the Supreme Court’s 6-3 conservative majority could perhaps improve Trump’s chances of preserving at least some of the tariffs, following the appeals court’s 7-4 ruling against their legality. However,predicting the court’s decision remains tough given past rulings and the unique nature of the challenge.
Senator Ron Wyden, the top Democrat on the Senate Finance Committee, criticized Trump’s statements, saying they “sow more confusion” and demonstrate an inconsistency in the administration’s position on the trade deals.
