US President Donald Trump said the United States might have to “cancel” trade agreements made with the European Union, Japan, South Korea, and others if it loses the tariff case currently before the Supreme Court.
He warned that losing the lawsuit would cause “great suffering” for the US.
Trump told reporters at the White House that his administration would ask the Supreme Court to overturn a recent appellate court ruling that found many tariffs to be illegal. He expects his administration to win the case.
He added, “We made a deal with the European Union where they pay us nearly a trillion dollars. You know? They are happy. It’s done. All these deals are finished… I think we will have to cancel them.”
This is Trump’s first comment hinting at the possibility of voiding agreements with major trading partners if the Supreme Court upholds last Friday’s ruling.
Trump said canceling tariffs would be costly, although trade experts point out that tariffs are paid by importers in the US, not companies in the countries of origin.
Economists have warned that tariffs are likely to lead to increased inflation in the United States.
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