Administration: Ending Tariffs Could Threaten Social Security, Medicare

The Trump administration, in documentation filed with a federal appellate court, warned that overturning the president's tariffs could trigger an economic collapse comparable to the Great Depression of 1929, potentially endangering programs such as Social Security and Medicare.

In a letter to the U.S. Court of Appeals for the Federal Circuit, Solicitor General D. John Sauer and Assistant Attorney General Brett Shumate argued that striking down the tariffs could force the United States to repay trillions of dollars from deals that are not yet fully executed, reports Axios on Tuesday.

They said such a reversal would risk the collapse of agreements reached with countries including Japan, South Korea, and the European Union, which involve more than $1 trillion in planned investments for U.S. projects.

The appeals court is weighing whether to uphold or overturn a May 28 ruling from the U.S. Court of International Trade that struck down most of the tariffs.

That decision found that President Donald Trump had exceeded his authority under the International Emergency Economic Powers Act. The ruling was immediately appealed, and the Federal Circuit temporarily allowed the tariffs to remain in place while the case is under review.

Oral arguments were held nearly two weeks ago, but Sauer and Shumate filed the supplemental letter Monday to present what they described as new reasons for maintaining the policy.

"If the United States were forced to pay back the trillions of dollars committed to us, America could go from strength to failure the moment such an incorrect decision took effect," they wrote. They warned that unwinding these agreements could result in widespread job losses, foreclosures, loss of savings, and threats to federal benefits.

The administration has said alternative tariff measures could be implemented if the courts block the current program, but the letter acknowledged for the first time that any substitutes would be less effective and leave the U.S. more vulnerable to economic abuses by foreign governments.

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