Trump_Warns_of_Trade_Deal_Reversal_Amid_Tariff_Legal_Battle

Trump Warns of Trade Deal Reversal Amid Tariff Legal Battle

U.S. President Donald Trump has warned that the United States may need to "unwind" trade agreements with the European Union, Japan, the Republic of Korea, and other partners if the Supreme Court rules against his administration in a high-stakes tariffs case. Speaking at the White House, Trump described the potential outcome as economically damaging, stating the U.S. would "suffer so greatly" if tariffs imposed under his administration are deemed illegal.

The remarks follow a recent U.S. appeals court ruling that challenged the legality of tariffs introduced during Trump’s trade disputes, including those targeting the Chinese mainland, Canada, and Mexico. While the decision does not affect steel and aluminum tariffs, Trump vowed to appeal to the Supreme Court, expressing confidence in a favorable outcome.

Trade experts note that U.S. importers—not foreign companies—bear the cost of tariffs, though economists warn such measures could exacerbate domestic inflation. Ryan Majerus, a former senior U.S. trade official, emphasized that existing agreements with the EU and others were designed as flexible frameworks rather than fixed deals.

Critics, including Senate Finance Committee Democrat Ron Wyden, argue Trump’s comments add uncertainty to global trade dynamics. The case’s outcome could reshape U.S. economic ties with Asia and beyond, affecting markets closely watched by investors and policymakers.

(Source: Reuters)

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