‘Economic ruination...’: Trump fires ‘hostage by foreign nations’ salvo if courts rule against tariffs

Just hours after a federal court torpedoed his sweeping tariff agenda, US President Donald Trump lashed out on Truth Social, warning that a legal defeat could hand foreign nations the power to "hold our Nation hostage." Trump’s post underscored the high-stakes clash between his aggressive trade stance and judicial limits on presidential authority.

In a post on Truth Social, Trump wrote, “If the Courts somehow rule against us on Tariffs, which is not expected, that would allow other Countries to hold our Nation hostage with their anti-American Tariffs that they would use against us. This would mean the Economic ruination of the United States of America!” 

A federal court in Manhattan delivered a sharp blow to President Trump’s tariff ambitions on May 28, declaring his recent executive orders unconstitutional. The ruling came from a three-judge panel at the Court of International Trade, which rejected Trump’s use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to justify sweeping tariffs.

The orders, issued in April, slapped a 10% tariff on most imports and introduced higher duties for trade-surplus nations such as China and the EU. The court’s decision halts those measures, stating that Trump had overreached in attempting to unilaterally reset US trade rules.

But in a swift reversal, the United States Court of Appeals for the Federal Circuit in Washington temporarily reinstated the tariffs on May 29. The court granted the government’s request to pause the lower court’s ruling, allowing time for an appeal. Plaintiffs have been asked to respond by June 5, with the administration’s reply due by June 9.

Commerce Secretary Howard Lutnick confirmed that Trump has no plans to extend the 90-day pause he had earlier implemented on the majority of the tariffs. That pause, initiated amid stock market turbulence, is set to expire at the start of July.

Speaking to Fox News, Lutnick said, “I expect the President to stand firm.”

Treasury Secretary Scott Bessent, meanwhile, signaled tough negotiating ahead, singling out China as a key concern. "China has not been a reliable partner," Bessent said, accusing Beijing of intentionally withholding products and further disrupting global supply chains.