U.S. economic devastation potential due to court decision invalidating tariffs, according to Trump's prediction
Holding the World's Economy Hostage: Trump's Bold Tariff Gambit Under Fire
The latest on Trump's trade discussions with China has been the talk of the town, following Treasury Secretary Steve Mnuchin's assertion that negotiations have stalled.
President Donnie the Dealmaker took to social media on Sunday, warning that if the courts rule against the administration's contentious tariffs, it could be a disaster for the country. The statement comes after the U.S. Court of International Trade (CIT) unanimously ruled toblock the usage of an emergency law enacting hefty import taxes on Wednesday.
Trump, known for his grandiose tweets, wrote on Truth Social, "If the Courts somehow rule against us on Tariffs, which is not expected, that would allow other Countries to hold our Nation hostage with their anti-American Tariffs that they would use against us. This would mean the financial implosion of the Yankee Doodle Dandy!"
The ball is now in President Trump's legal team's court, as they have until 5 p.m. Monday to file their response.
In A Courtside Dance, the Trump administration's actions have been met with diverse reactions. Following the court decision, a federal appeals court ruled in favor of the Trump administration on Thursday, delaying a lower court's ruling blocking the use of the International Emergency Economic Powers Act (IEEPA) to implement a 10% baseline tariff and reciprocal tariffs, initially set for April 2.
The reciprocal taxes, part of the Trump administration's negotiating strategy, are currently in limbo as the Court of Appeals for the Federal Circuit awaits responses from the plaintiffs and the administration by Thursday and June 9, respectively.
It's a game of legal chess that may have lasting consequences on international trade partnerships, with the ultimate decision potentially leading to refunds for certain duties if appeals court rules in favor of lower court decisions regarding IEEPA-based tariffs[2][4].
In an intriguing twist, Trump raised the stakes even further by increasing Section 232 tariffs on steel and aluminum imports to 50%, effective June 4, 2025, under the Trade Expansion Act of 1962[1]. This move, separate from the IEEPA-based tariffs, has not been directly affected by these court rulings at this time[1][4].
Stay tuned as this story continues to unfold in the ever-emotional realm of international trade.
Fox News Digital's Breanne Deppisch contributed to this report.
[1] Congress.gov
[2] Office of the U.S. Trade Representative
[3] U.S. Court of International Trade Judgment Summary
[4] Corker, Alex & Cunningham, Colin, & Rubin, Jennifer A. Court Rules Against Trump Tariffs Issued under IEEPA
- The financial implications of the court's decision on Trump's tariffs could potentially lead to the 'financial implosion' of the United States, as stated by President Trump on Truth Social.
- The reciprocal taxes, a part of the Trump administration's negotiating strategy, are currently in limbo, awaiting responses from both the plaintiffs and the administration by June 9 and Thursday, respectively, in the Court of Appeals for the Federal Circuit.
- The tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) could have lasting consequences on international trade partnerships, especially if the appeals court rules in favor of lower court decisions regarding IEEPA-based tariffs.
