Will The US Economy 'Go To Hell'? Trump Claims So If Tariffs Are Struck Down
US indexes surged during tariff periods , but economists warn that doesn’t guarantee they would survive a sudden reversal.
The US Supreme Court is set to decide one of the most consequential economic cases in modern American history , whether former President Donald Trump legally used emergency powers to impose sweeping tariffs on China, India, and multiple other countries.
At stake: billions in federal revenue, America’s trade playbook, and the political fault line defining the 2024 and 2025 economy.
The ruling could either cement Trump’s aggressive trade authority or dismantle it , potentially forcing the government to refund billions in tariff collections and triggering market shockwaves.
Trump Warns of “Economic Collapse” if Tariffs Are Struck Down
In a forceful interview on CBS’s “60 Minutes”, Trump warned the US economy could “go to hell” if justices overturn his tariff powers:
“I think our country will be immeasurably hurt. I think our economy will go to hell… Because of tariffs, we have the highest stock market we’ve ever had.”
The White House maintains the tariffs have been a core engine behind US economic strength, equity market gains, and record job creation in key domestic industries like manufacturing and steel.
What the Supreme Court Is Reviewing
The legal challenge centers on whether Trump exceeded authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs as high as:
- 145% on China
- 50%+ on other trading nations, including India and Brazil
Critics argue IEEPA was never intended for broad trade actions. Supporters say emergency tariff powers are essential in national and economic security.
The Tariff Impact , By the Numbers
US tariff revenue spike (CNN & Treasury data):
- ~$90 billion in tariffs paid by US companies as of Sept 2025
- $100 billion+ total collected since April expansion
- 242% YoY increase in tariff revenue in July
- 50%+ of FY25 tariff revenue tied to emergency actions
To Trump’s point, US indexes surged during tariff periods , but economists warn that doesn’t guarantee they would survive a sudden reversal.
What Happens Next? Key Milestones
Here’s the forward roadmap:
Deal & Review Timelines
- 120-day window for execution under Trump’s order
- US national security review decision expected late 2025
- Potential retroactive refund orders if tariffs deemed illegal
Full separation deadline (if ruling goes against tariffs):
January 2026
The legal and administrative mechanics could stretch months , meaning uncertainty will hang over markets.
Why This Case Matters
This case will shape:
- Executive power over trade
- Future US –China economic strategy
- How much unilateral control presidents hold in global commerce
- American manufacturing vs. importer cost burden
- Stock market and currency stability
While tariffs were originally billed as trade weapons, they have become one of Washington’s largest and fastest-growing revenue streams.
If the Supreme Court rewrites that authority, it may force Congress, not the Oval Office, to lead trade strategy , a dramatic shift in US power structure.
The Big Question
If the Supreme Court overturns Trump’s tariff authority , does America face a constitutional reset, an economic shock, or both?
Markets, corporations, and global rivals are watching closely. The answer may define the next decade of US economic policy , and political power.