American politics and economy are currently at a very sensitive juncture. President Donald Trump’s much talked about tariff policy has now directly reached the doorstep of the US Supreme Court. This matter is not only legal, but its impact extends to America’s economic structure, the global trade system and Trump’s political credibility.

The real controversy centers on whether the Trump administration properly used its emergency powers under the International Emergency Economic Powers Act (IEEPA). The Trump government had imposed large-scale import duties citing national security. America recovered hundreds of billions of dollars from these tariffs and put economic pressure on many countries. This case is also historic because for the first time the US Supreme Court will decide what is the limit of the President’s emergency power. If the court sets clear limits, then no future president will be able to impose arbitrary tariffs like this.

America will be ruined – the real reason behind Trump’s warning

Donald Trump’s statement that America will be ruined if the Supreme Court goes against us is not just political rhetoric. Solid economic calculations and political compulsions are hidden behind this. Trump clearly said on his social media platform Truth Social that if the court cancels the tariffs, America may have to return hundreds of billions of dollars already recovered. Not only this, companies and countries which have set up factories, plants and equipment in America to avoid tariffs can also demand compensation. According to Trump, when all these possible claims are added, the loss could reach trillions of dollars. This amount can take America’s budget deficit to explosive levels. Such a huge refund would be almost impossible not only financially but also administratively. Apart from this, Trump’s entire America First policy has been based on tariffs. If this policy falls in the Supreme Court, it will raise direct questions on Trump’s leadership. This is the reason why he is trying to create pressure by showing the picture of possible devastation to the public even before the decision.

What will happen if the Supreme Court decides against Trump?

If the US Supreme Court declares Trump’s tariff policy illegal, its consequences will not be limited to America only. This will also affect the global economy. First, the US government may have to pay hundreds of billions of dollars in tariff refunds. This will put huge pressure on the government treasury and the budget deficit will increase rapidly. The second major blow will be to Trump’s political credibility. His most aggressive and popular economic policy will collapse in court. Third, America’s position in foreign trade negotiations will be weak. Questions will be raised on ongoing informal trade deals with many countries and some agreements may even be broken. The fourth and most important effect will be on the emergency power of the President. If the court sets a strict constitutional limit, it will be very difficult for any president to impose such tariffs in the future.

Also read: India-Iran Trade: India buys and sells these things from Iran, how much harm will Trump’s 25 percent tariff cause to India?

Us federal appeals court on tariff case: The Federal Appeals Court of the US called the tariff imposed on almost every country by President Donald Trump as illegal. However, the court has not immediately abolished these tariffs and has given the administration time to appeal to the Supreme Court.

The court said that Trump misused the International Emergency Economic Powers Act (IEEPA) of 1977. The judgment of the Court of Appeals for the Federal Circuit said, “It does not seem possible that the Congress has intended to give the President the power to impose unlimited tariffs.” The trade court of New York had also given a similar verdict in May. However, the judges disagreed with the decision that this law is not unconstitutional and the President can be given tariff rights to a limited extent.

Tariff was imposed on “Liberation Day”

On April 2, Trump declared ‘Liberation Day’ and put heavy tariffs on all countries. Among them, up to 50% “reciperochl tariff” was on countries with which America’s trade deficit is imposed, while the rest of all countries were imposed a baseline tariff of 10%. Later, more additional charges were imposed on countries like India, which were associated with different reasons from the trade deficit.

America will be ruined by Trump

President Trump reacted strongly to the court’s decision. He said that if this decision is maintained, it will ‘destroy America’. Trump wrote on his social media site Truth Social, ‘If this tariff moves, the country will become completely weak. We will no longer tolerate any country, whether friend or inappropriate tariffs and business obstacles of the enemy. This decision will take America towards waste.

Trump will go to Supreme Court

White House spokesperson Kush Desai said that Trump has worked completely legal and he will eventually win in this matter. Meanwhile, American Attorney General Palm Bondi accused the court of interfering with the President’s foreign policy rights and asked to appeal to the Supreme Court. The Department of Justice has warned that if the tariffs are removed, it will prove to be ‘economic waste’ for the US. Revenue from the current tariff has reached $ 159 billion, which is twice as compared to last year.