Daijiworld Media Network - Washington
Washington, Jan 13: President Donald Trump has warned that the United States could face a massive financial crisis if the Supreme Court rules that his sweeping global tariffs on imports are illegal, calling it a potential economic catastrophe for the country.
In a strongly worded post on Truth Social on January 12, Trump said the US would be forced to repay “many hundreds of billions of dollars” already collected through tariffs and could also be liable for “trillions” more linked to private investments made to avoid higher import duties. “If the Supreme Court rules against the United States of America on this National Security bonanza, we’re screwed,” he wrote.
The warning comes ahead of an expected Supreme Court opinion, which could be issued as early as January 14. Trump imposed most of the tariffs by declaring a national emergency over the US trade deficit under the 1977 International Emergency Economic Powers Act. However, during oral arguments in November, a majority of justices appeared sceptical about the use of emergency powers to justify the move.
According to official data, the federal government collected nearly $200 billion in additional tariff revenue in 2025 due to the import duties imposed on goods from across the world. Tariffs are paid by companies importing products into the United States. Trump, however, claimed the potential payback would also include money spent by companies and foreign nations on factories and equipment built in the US to bypass the higher tariffs.
“When these investments are added, we are talking about trillions of dollars. It would be a complete mess and almost impossible for our country to pay,” Trump said, adding that calculating who should be paid, when and how would take years.
Critics have accused Trump of exaggerating the scale of private investment driven by his tariff policy, noting that several companies that announced US-based projects have yet to implement them. Trump did not explain how he arrived at the “trillions” figure.
A ruling against Trump would deal a major blow to the centrepiece of his domestic agenda and his preferred tool for trade negotiations, while also raising wider questions about executive authority and global economic stability. In August, a federal appeals court ruled that most of the tariffs were unlawful after a legal challenge by a group of businesses.
Trump has said he is preparing a “Game 2 plan” to push his tariff agenda if the Supreme Court rules against him, though he has admitted alternative routes would be slower. The Supreme Court does not announce in advance which cases it will decide, leaving uncertainty over whether the tariff case will be included in its upcoming rulings.