‘Anti-tariff means pro-China’: Trump says court ruling could hit US as tariffs bring billions

Trump warns Supreme Court ruling could hurt US economy

• Trump claims tariffs boosted investment and reduced the budget deficit.
• He claims tariffs boosted US auto sector, with $70B new investment in Detroit.
• Trump unveils new plan to reduce healthcare premiums

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United States President Donald Trump mounted a robust defence of his administration’s tariff policy, calling it the backbone of what he described as the “strongest and fastest economic turnaround” in American history.

Speaking in Michigan, Trump claimed the measures had fuelled investment, boosted wages, curbed inflation, and channelled hundreds of billions of dollars into the US Treasury.

Addressing the Detroit Economic Club after touring Ford Motor Company’s historic River Rouge Complex, Trump said his return to the state was meant to showcase what he called a dramatic economic revival.

“I am back in Michigan to report to you on the strongest and fastest economic turnaround in our country's history. Under our administration, growth is exploding, productivity is soaring, investment is booming, incomes are rising, inflation is defeated, and America is respected again. Just as I promised you, I've imposed a 25 per cent tariff on all foreign automobiles,” he said, arguing that the move had transformed the domestic auto industry.

Trump claimed the tariffs had triggered a surge in manufacturing investment, particularly in the auto sector. “US auto factories are now seeing more than $70 billion of new investment, and much of that money is coming right here to the car-making capital of the world, Detroit,” he said.

Defending his broader tariff strategy, the president said the policy had delivered major fiscal benefits. “They brought hundreds of billions of dollars pouring into the United States Treasury, helped curb inflation, and helped cut the federal budget deficit by a staggering 27 per cent, and that's only for a short period of time,” he said.

Rejecting criticism that tariffs raise prices for American consumers, Trump dismissed warnings from economists and industry groups. “Every prediction the critics made about our tariff policy has failed to materialise. The evidence shows overwhelmingly that the tariffs are not paid by American consumers. They're paid by foreign nations and middlemen. Once again, the so-called 'experts' were 100 per cent wrong and Trump was right,” he said.

Trump’s remarks come ahead of an expected US Supreme Court ruling on the legality of several broad tariffs imposed during his second term. Earlier this week, he warned that an adverse ruling could have sweeping financial consequences.

“The actual numbers that we would have to pay back if, for any reason, the Supreme Court were to rule against the United States of America on Tariffs, would be many Hundreds of Billions of Dollars,” Trump wrote on Truth Social, adding that it would not include compensation sought by companies investing to avoid tariffs.

Addressing the legal challenge directly at the Detroit event, Trump accused critics and challengers of advancing China’s interests. “An anti-tariff person is a pro-Chinese person,” he said, warning that his administration would pursue alternative measures if the court ruled against it.

The Supreme Court case centres on whether the administration was justified in using emergency powers under the International Emergency Economic Powers Act to impose country-specific tariffs, and whether importers would be entitled to reimbursement if those powers were misapplied.

During his Michigan visit, Trump toured a Ford plant in Dearborn, observing production lines for gas, hybrid, and off-road F-150 models. He interacted with assembly line workers and Ford executive chairman Bill Ford, declaring, “All US automakers are doing great.”

Trump also criticised the Affordable Care Act, calling it a windfall for insurers. “Obamacare was a gift to make health insurance companies rich at the expense of the American People,” he said, announcing plans to unveil a new “healthcare affordability framework” later this week.

“I want the money to go directly to the people, so they can buy the healthcare that's right for them,” he said, claiming the plan would reduce premiums for millions.

Highlighting what he described as fulfilled campaign pledges, Trump said, “Over the past 12 months, almost every promise I made to you right here in 2024 has been kept. I gave you the largest tax cuts in American history,” adding that interest on car loans had been made fully tax-deductible for vehicles “stamped with the beautiful words, 'Made in the USA.'”

On energy costs, Trump claimed fuel prices had fallen sharply, saying motorists in Detroit could now pay less than $2.30 a gallon, compared to $4.50 two years earlier.

He also attacked the Biden administration’s trade record, claiming, “Under Biden, we had the highest trade deficit ever recorded,” and asserting that his administration had reduced the deficit by 62 percent in a short period.

New data released by the US Treasury on Tuesday appeared to support Trump’s emphasis on tariff revenue. According to figures cited by AFP, the federal budget deficit narrowed by 15 per cent in the October–December quarter, falling to $602 billion. Revenue rose 13 per cent to $1.2 trillion, while spending increased two per cent to $1.8 trillion, both record highs.

Customs duties surged during the period, rising from $23 billion a year earlier to $94 billion, driven largely by higher tariffs introduced since Trump returned to office. Trump has repeatedly argued that tariff revenue could play a central role in long-term deficit reduction, citing projections that suggest tariff changes could reduce deficits by trillions over the next decade.