Donald Trump is warning of a potential economic disaster, even though he has repeatedly boasted that the U.S. economy is thriving under his leadership — a shift in tone noted by CNN on Friday. His latest remarks came in a Truth Social post tied to an ongoing legal battle over his authority to impose sweeping tariffs.
CNN points out that Trump, who often claims America has never been more prosperous, cautioned that the country could face a crash reminiscent of 1929 if courts strip him of the emergency powers he has used to justify broad tariffs on foreign goods.
“If a radical left court ruled against us at such a late stage, trying to destroy or disrupt the greatest amount of money, wealth, and influence the United States has ever seen (…), it would be a return to 1929 — THE GREAT DEPRESSION!” Trump wrote in his trademark style.
Back in May, the U.S. Court of International Trade ruled that Trump had overstepped his authority by imposing such wide-reaching tariffs. Last week, a federal appeals court heard his administration’s appeal, but no ruling has been issued yet. Whatever the decision, it will likely end up before the Supreme Court.
Trump warned that a ruling against him would be a “judicial tragedy” from which America “would never be able to recover.” CNN notes it is rare for a sitting president to publicly predict an economic collapse.
He also highlighted that tariff revenues have soared this year under his trade policies — a point CNN acknowledges — but economists say the broader impact is minimal. Gregory Daco, chief economist at EY-Parthenon, told CNN that the extra $70–80 billion in tariff revenue compared to last year is just “a drop in the ocean” compared to the nearly $7 trillion the federal government spent last year.
Daco argued that if the courts forced Trump to cut tariffs, it could actually be economically beneficial, acting as a stimulus.
Trump, however, insisted tariffs have “a huge, positive effect on the stock market.” While U.S. stocks have indeed hit record highs this summer, analysts told CNN that tariffs have little to do with it — the rally only began on April 9, the day Trump announced he was suspending his most aggressive tariff hikes.
