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Trump raises alarm over potential Supreme Court ruling
US President Donald Trump has cautioned that invalidating his tariffs could plunge the country into chaos, as the Supreme Court prepares to rule on the legality of his trade policies. In a social media post on Monday, Trump described the fallout as a "complete mess" if businesses and states succeed in overturning the levies.
Legal battle over trade authority
The dispute centers on whether Trump overstepped his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). Small businesses and several US states argue the president lacks constitutional power to impose such taxes, which they claim only Congress can authorize.
Two lower courts previously ruled against the administration, prompting the case to reach the Supreme Court. The justices, including a conservative majority, expressed skepticism during November hearings about the White House's justification for the duties, which Trump asserts are vital to reviving US manufacturing and correcting trade imbalances.
Billions at stake in refunds
The tariffs, introduced in April last year, have generated over $130 billion-more than half of all US tariff revenue. If the Supreme Court strikes them down, the government could be forced to refund billions to affected businesses, a scenario Trump called "almost impossible" for the country to manage.
"It would take many years to figure out what number we are talking about and even, who, when, and where, to pay."
Donald Trump, US President
Trump warned that refunds would create a logistical nightmare, adding that any suggestion of a quick resolution was "false, inaccurate, or totally misunderstood."
Businesses and states push back
Opponents of the tariffs, including states and private groups, argue that IEEPA-a 1977 law-does not explicitly grant the president power to impose tariffs. They also question whether the trade deficit qualifies as an emergency under the law.
Many businesses, both in the US and abroad, have borne the cost of the tariffs since their implementation. While some have indicated they would seek refunds if the court rules against Trump, they note the payments would not offset the broader disruption caused by the trade policies.
White House explores alternatives
The administration has signaled it may pursue other legal avenues if the Supreme Court rejects the tariffs. One option includes invoking existing legislation allowing the president to impose temporary tariffs of up to 15% for 150 days.
Trump has framed the case as critical to national security, warning that a loss would weaken the US in trade negotiations and create long-term financial instability. However, businesses and legal experts remain divided on the outcome, with many awaiting the court's decision, expected as early as Wednesday.
