US President Donald Trump has said the White House might have to "unwind" trade deals reached with the EU, Japan and South Korea among others if it loses a Supreme Court tariffs case.
Speaking to reporters at the White House, Trump said his administration will ask the Supreme Court to reverse a US appeals court ruling last week that found many of his tariffs were illegal.
He was adamant, however, that his administration would prevail in the case.
"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," he said. "I guess we'd have to unwind them."
It is the first time Trump has specifically suggested that trade deals negotiated with other countries and territories could be invalidated if the Supreme Court lets Friday's ruling stand.
Trump said that rescinding the tariffs would be costly, although duties are paid by individuals and companies in the US that are importing produce, not exporters in the country of origin.
"Our country has a chance to be unbelievably rich again. It could also be unbelievably poor again. If we don't win that case, our country is going to suffer so greatly, so greatly," Trump said.
The appeals court ruling addressed the legality of what Trump calls "reciprocal" tariffs first imposed on China, Canada, and Mexico in February and again on much of the rest of the world in April.
The decision does not impact tariffs issued under other legal authority, such as those on steel and aluminium imports.
Trade experts said his comments on the cost of rescinding the tariffs were intended to convince the Supreme Court that removing the tariffs would unleash major economic chaos.
Ryan Majerus, a former senior US trade official, said it had been clear from the start that the trade deals with the EU and other trading partners were framework agreements that were subject to change, not fully fledged trade agreements.
"The president's announcement today that the deals could be unwound reflects an effort to [maximise] leverage on the US side," he said.
There is currently a 6-3 majority of Republican-appointed judges on the Supreme Court, which may improve Trump's odds of keeping at least some tariffs.
Senator Ron Wyden, the top Democrat on the Senate Finance Committee, said Trump's comments sowed more confusion.
"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.
*This article was originally published on BusinessPlus.ie.
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