Former US President Donald Trump has issued a stark warning that it would create a "complete mess" if the nation's Supreme Court moves to strike down his sweeping global trade tariffs. The legal challenge, which could be decided imminently, represents a crucial test of his controversial economic policy and presidential authority.
Legal Showdown at the Supreme Court
The US Supreme Court, which holds a 6-3 conservative majority, heard oral arguments on the case in November. At that hearing, justices appeared sceptical of the legal foundation for the Trump administration's tariff regime. Two lower courts had already ruled that Trump overstepped his authority in imposing the levies.
The tariffs are being contested by a coalition of 12 US states – Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, Oregon, and Vermont – alongside numerous small businesses. They argue the president lacked the constitutional power to enact such widespread taxes on goods imported into the United States.
Trump originally imposed the tariffs through executive orders last April, citing the International Emergency Economic Powers Act (IEEPA) of 1977. This law grants the president certain powers to regulate international transactions during a declared national emergency.
The Potential for a "Complete Mess"
In a lengthy social media post, Trump asserted that the country would be "SCREWED" if the Supreme Court rules against the tariffs. He argued that unwinding them would be extraordinarily difficult, as businesses and foreign nations could potentially claim refunds for duties already paid.
"It would take many years to figure out what number we are talking about and even, who, when, and where, to pay," Trump wrote. Justice Amy Coney Barrett, a Trump appointee to the court, echoed this concern during the November hearing, noting that undoing the collected taxes could indeed become a "complete mess."
New Tariff Threat Linked to Iran
Amid this legal uncertainty, Trump has simultaneously issued a new trade threat. He declared that any country conducting business with Iran will face a 25% tariff on all trade with the United States. This move comes as Washington weighs its response to significant anti-government protests within Iran, a nation already under heavy US sanctions for years.
"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America," Trump stated. He emphasised that "This order is final and conclusive." It is important to note that such tariffs are typically paid by US importers who bring in goods from the affected countries.
Major export destinations for Iranian goods include China, the United Arab Emirates, and India, potentially placing their trade relations with the US in the crosshairs of this new policy. The dual developments underscore the ongoing and profound impact of Trump's trade agenda, which continues to fuel legal battles and shape global economic relations.
