President Trump has warned that a ruling against his sweeping tariff policy could trigger a depression similar to the Great Depression of the 1920s, causing the country to struggle to recover. He cited the International Emergency Economic Powers Act (IEEPA), a 1977 law authorizing the president to issue economic sanctions in an emergency to counter an “unusual and extraordinary threat,” as a potential reason for the tariffs. Trump also expressed optimism that the courts would rule in his favor, stating that America deserves success and greatness, not turmoil, failure, and disgrace. The U.S. Court of Appeals for the Federal Circuit is reviewing Trump’s assertion that emergency powers justify his tariffs, and former House Speaker Paul Ryan predicted that the Supreme Court would strike down IEEPA, the law used for the tariffs, and the president would have to go to other laws to justify tariffs, such as 232, 201, and 301. The Supreme Court is likely to strike down IEEPA, making it difficult for Trump to recover from such a judicial tragedy.
Trump warns that the rejection of his tariff plan could potentially lead to a depression.
