Donald Trump, the President of the U.S., issued a stern warning to the judiciary on Monday. He suggested that if the Supreme Court rules the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) as illegal, the U.S. might face refunds or compensation costs amounting to trillions of dollars.
Trump claimed on his social media platform, Truth Social that if for any reason the Supreme Court rules against the U.S. regarding tariffs, the amount it would actually have to refund could reach hundreds of billions of dollars.
He added that this doesn’t even account for the payback that countries and companies would demand after building factories and facilities in the U.S. to avoid tariff payments. When you factor in these investments, it could amount to trillions of dollars.
Trump emphasized that this would cause unprecedented chaos, and it would be nearly impossible for the nation to handle. Anyone claiming it can quickly and easily resolve such a massive and complex issue is either lying, misinformed, or completely misunderstanding the situation.
He further noted that even if a solution were possible, the amount would be so astronomical that it would take years just to determine what it owes, to whom, when, and where. Remember, when America shines, the world shines. In other words, if the Supreme Court rules against the U.S. on this critical national security issue, it is doomed.
Trump’s remarks came amid growing speculation that the Supreme Court would soon make a final judgment on the legality of the tariff measures based on the IEEPA.
Lower courts have already ruled the tariff measures illegal, and the Supreme Court could issue a ruling as early as this month.
The key issues in the lawsuit center on whether Trump had the authority to impose tariffs such as reciprocal tariffs and fentanyl tariffs based on the IEEPA, and whether the administration must refund tariffs already collected from importers if the tariffs are deemed illegal.
Additionally, as Trump mentioned, if the administration loses, it is likely to face significant repercussions. Lowering the reciprocal tariffs imposed on trade partners like South Korea, Japan, and the European Union (EU) could jeopardize the substantial investments these countries have made in the U.S.
In South Korea’s case, the Trump administration previously agreed to reduce the 25% reciprocal tariff imposed on the South Korean government to 15% in exchange for a commitment to invest 350 billion USD in the U.S.
South Korean President Lee Jae Myung and President Trump finalized the details of their discussions during a summit in Gyeongju, South Korea, on October 29 of last year, and a corresponding joint fact sheet was released in mid-November.
Regarding this matter, Ahn Duk-geun, South Korea’s Trade Minister, who visited the U.S. the previous day (January 11), spoke with South Korean reporters at Dulles International Airport near Washington, D.C. He stated that the Supreme Court’s ruling is crucial, but there seem to be many variables involved. He added that the purpose of this visit is to gather various opinions from the U.S. government, law firms, and trade experts and to prepare for different scenarios.
