President Donald Trump warned on Sunday that the United States would be “completely destroyed” without tariff revenue. He made the remarks in a fiery Truth Social post following a major court ruling that struck down key elements of his trade policy.
In a 7-4 decision, the US Court of Appeals for the District of Columbia Circuit ruled that Trump had overstepped his authority by declaring a national emergency to impose tariffs on hundreds of billions of dollars’ worth of imports. The judges clarified that under the International Emergency Economic Powers Act (IEEPA), the president does not have the power to impose broad, general tariffs; this authority rests with Congress.
The ruling represents one of the most significant legal setbacks to Trump’s economic agenda , which has heavily relied on tariffs since his return to the White House in January 2025. While these measures have generated record revenue, they have also put strain on the United States’ relationships with key trading partners.
The existing tariffs will remain in place until October 14, giving the administration time to petition the Supreme Court. If the high court upholds the decision, the government could be forced to return billions of dollars already collected from importers.
Trump appeals, defends tariffs as core to US strength
Trump, who swiftly reacted to the court’s decision on X, said it amounted to a “radical left ruling” that, in his view, would not only destroy the US economy but also undermine the strength of the military.
He warned that if the tariffs were struck down, the country would face years, and possibly decades, of rebuilding efforts. According to him, the ruling represented a dangerous setback that could strip the United States of one of its most effective tools for protecting national interests.
He emphasized that he was fighting to preserve tariff protections, which he described as central to his economic vision. Trump maintained that tariffs had already saved key American industries, generated critical revenue for the government, and provided leverage against foreign governments. He argued that removing them would leave the US economically and strategically vulnerable, reinforcing his commitment to defending the policy in the courts.
Trump to use tariffs to tackle debt
Despite the legal setback , tariff collections have surged over the past two years. Treasury data shows revenue rose from $17.4 billion in April to $29.6 billion in July, with total collections for the fiscal year reaching $183.1 billion by late August. At this pace, the US is on track to match last year’s full tariff revenue in just five months.
Scott Bessent, the Treasury secretary, said the administration might use some of the revenue to reduce the national debt, which totals nearly $37.2 trillion. He also hinted that tariffs could be a credit to American taxpayers.
“I think at some point we’re going to be able to do it,” Bessent told CNBC in August. “We are absolutely laser-focused on paying down the debt.”
Bessent also suggested that revenue estimates might be ratcheted to the upside from the current $300-billion estimate for the year, but he wouldn’t put out a new number.
The decision comes as Washington remains sharply split over government spending, taxation, and debt reduction. Supporters of Trump’s tariffs view them as a rare means of raising money without raising domestic taxes. Critics say tariffs are an unseen tax on consumers and businesses that drives up the cost of everything from electronics to groceries.
The Supreme Court’s decision could reshape US trade policy, economists say. Should the tariffs be invalidated, the government could lose a crucial revenue source, and importers could demand billions in refunds.
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