Trump pressures Supreme Court on legality of reciprocal tariffs

President Donald Trump warned the US Supreme Court that a ruling against his reciprocal tariffs would cause massive financial chaos, following his call with Mexican President Claudia Sheinbaum. In a Truth Social post, Trump stated that overturning the tariffs would require refunding hundreds of billions of dollars and impact trillions in investments. The Court, skeptical in a November hearing, could annul the measures announced in April 2025.

Donald Trump ramped up pressure on the US Supreme Court after a call with Claudia Sheinbaum, posting a direct message to the justices on Truth Social. The Court is assessing the legality of Trump's reciprocal tariffs imposed under a 1977 law granting presidential powers in national emergencies. In a November 2025 session, conservative justices like John Roberts, Neil Gorsuch, and Amy Coney Barrett expressed skepticism about Trump's authority to impose these tariffs.

The tariffs were announced on April 2, 2025, dubbed by Trump as 'Liberation Day,' with rates of 10 to 50 percent on dozens of countries, exempting Mexico and Canada under the USMCA/T-MEC. Trump argued the tariffs balance 'unfair' trade practices, applying reciprocal duties like 34 percent to China (which charges 67 percent) and 20 percent to the European Union (which charges 39 percent), plus a 10 percent global rate and 25 percent on foreign vehicles from April 3.

If the Court rules against them, the tariffs would be annulled, forcing the administration to refund 'hundreds of billions of dollars,' according to Trump. He added that countries and companies would claim reimbursements for investments made to avoid them, such as General Motors' $4 billion to shift production from Mexico to the US, and Clariant's relocation from Puebla. 'When these investments are added up, we're talking trillions of dollars. It would be total chaos... we're fried!,' Trump wrote.

The ruling would jeopardize recent trade deals with Japan, South Korea, and the European Union in sectors like electronics, critical minerals, and pharmaceuticals. Politically, it could undermine the Republican majority in the House of Representatives, where Democrats lead by 3.5 points in RealClearPolitics polls. Enrique Quintana, editorial director of El Financiero, noted it would benefit Sheinbaum's government in the USMCA review, facing a weakened Trump.

Sheinbaum has defended Mexico's exemption, stating treaties eliminate mutual tariffs. Economists warn the tariffs could raise $600 billion annually but would increase consumer prices and disrupt global supply chains.

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Illustration of Trump warning at podium about huge tariff refund costs if Supreme Court rejects his emergency powers, with dramatic Supreme Court and money overflow visuals.
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Trump says U.S. would be “screwed” if Supreme Court rejects emergency-tariff authority

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President Donald Trump warned on Monday that the United States could face major repayment obligations if the Supreme Court rules against his use of emergency powers to impose broad “reciprocal” tariffs, arguing that refunds and related costs could reach into the hundreds of billions or more. Treasury Secretary Scott Bessent has disputed the scale of any repayment risk and said the Treasury could handle any refunds if ordered.

U.S. President Donald Trump stated on January 20 during a press conference that he is 'anxiously' awaiting a Supreme Court ruling on the legality of his administration's global tariffs. He defended the levies for bolstering national security and federal revenue while noting that a potential refund process in case of a loss could be complicated. The Supreme Court did not issue a decision on the tariff case that day.

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The Supreme Court heard arguments on November 5 in consolidated challenges to President Donald Trump’s “Liberation Day” tariffs imposed under the International Emergency Economic Powers Act, probing whether the duties function as taxes Congress alone may authorize. Days later, Trump proposed using tariff receipts to send $2,000 to most Americans and apply any remainder to the national debt.

The Republican-led Senate approved a resolution to terminate the national emergency President Donald Trump used to impose 50% tariffs on Brazil, passing 52-48 with five GOP votes. The measure, sponsored by Sen. Tim Kaine, is largely symbolic given a House procedural blockade and the prospect of a presidential veto, but it foreshadows more tariff votes and an upcoming Supreme Court test of Trump’s trade powers.

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Following Mexico's Senate approval of tariffs on Asian imports, Brazil has voiced concerns about potential disruptions to bilateral trade outside the protected automotive sector, urging dialogue to safeguard exports and investments.

US President Donald Trump has announced tariffs of up to 25% on countries maintaining commercial ties with Iran, in response to the violent suppression of protests there. The decision puts Brazil on alert, risking exports of meats and other agribusiness products. Experts warn of potential trade tensions and significant economic impacts.

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The EU is considering retaliatory tariffs worth 93 billion euros against the US in response to Donald Trump's tariff threats against eight European countries. The threats concern the countries' military support for Greenland, and the EU is calling an extraordinary summit in Brussels on Thursday. Sources provide conflicting reports on the scope of countermeasures.

 

 

 

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