US President Donald Trump has warned that the United States may need to “unwind” key trade deals with the European Union, Japan, South Korea, and other partners if his administration loses a Supreme Court battle over tariffs. Speaking from the White House, Trump said last week’s ruling by a federal appeals court, which found many of his tariffs to be illegal, could deal a devastating blow to the American economy if it stands. He vowed to appeal, expressing confidence that the Supreme Court would ultimately side with him.
Trump argued that trade deals his administration negotiated—separately from the tariffs—could collapse if the tariffs were rescinded. “We made a deal with the European Union where they’re paying us almost a trillion dollars. And you know what? They’re happy. It’s done. These deals are all done. I guess we’d have to unwind them,” he said, insisting that removing tariffs would be costly. Economists, however, have pointed out that tariffs are not paid by foreign companies but by U.S. importers, and that keeping them in place risks fuelling domestic inflation.
The appeals court ruling specifically targeted Trump’s so-called “reciprocal” tariffs, introduced in April as part of his trade war strategy, along with another set imposed in February on China, Canada, and Mexico. Tariffs enacted under different legal frameworks, such as those on steel and aluminium, remain unaffected. Trade experts believe Trump’s latest comments were designed to pressure the Supreme Court by raising the spectre of economic turmoil if the tariffs were struck down.
Ryan Majerus, a former senior U.S. trade official now with King & Spalding, noted that the agreements Trump referenced were always framework deals, open to adjustments, rather than fully binding trade treaties. “The president’s announcement today that the deals could be unwound reflects an effort to maximise leverage on the U.S. side,” he explained. Legal experts added that while the Supreme Court’s Republican majority may improve Trump’s chances of salvaging some tariffs, the unprecedented nature of the challenge makes the outcome difficult to predict.
Democrats, meanwhile, accused the administration of sending mixed signals. Senator Ron Wyden, the top Democrat on the Senate Finance Committee, criticised Trump for sowing confusion over the status of U.S. trade deals. “The Trump administration can’t get its story straight about whether its trade deals will hold any water if the tariffs are struck down,” he said, warning that the uncertainty could further destabilise already fragile global markets.
