- US President Trump warned a court ruling against tariffs could cause a Great Depression
- Trump claimed tariffs boosted the US stock market and government revenues significantly
- The Federal Circuit Court of Appeals heard arguments against Trump’s tariffs on July 31
US President Donald Trump in a post on Truth Social issued a stark warning that the United States could face an economic collapse akin to the 1929 Great Depression if a federal court were to strike down his tariff policies.
In his post on Friday, Trump claimed that tariffs have delivered "a huge positive impact" on the US stock market. In addition, he said that the markets hit new record highs almost daily. He added that “hundreds of billions of dollars” are flowing into the country's coffers due to the tariffs.
“If a Radical Left Court ruled against us at this late date, in an attempt to bring down or disturb the largest amount of money, wealth creation and influence the USA has ever seen, it would be impossible to ever recover,” Trump warned. “It would be 1929 all over again — a GREAT DEPRESSION (sic),” he said.
During the Great Depression, industrial production plunged by nearly 50%, stock market crashed wiping out billions, and banks failed.
Notably, the Federal Circuit Court of Appeals court heard arguments against Trump's tariff policy on July 31. The hearing was held for around two hours, with no interim ruling delivered.
Trump added that any legal challenge to his tariff measures should have been decided “long ago”. Ruling against the tariffs now would jeopardise the country's economic gains and risk destroying a unique period of “greatness” for the US economy, he argued.
Trump, who claims to be seasoned survivor of legal and political battles, expressed confidence in the judicial system while cautioning about its potential to create “turmoil, failure, and disgrace” if it sided against his trade agenda.
“Our country deserves success and greatness, not turmoil,” he further added. “There is no way America could recover from such a judicial tragedy.”
While the courts are yet to make a decision on the tariffs, India and Brazil are the worst hit with 50% tariffs. Syria and Laos follow with 41% and 40% tariffs. While China has brokered a pause in tariffs, South Africa, Japan and Philippines face the lowest tariffs.
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