The Supreme Court is set to review the legality of the Trump administration’s global tariffs, following lower court rulings that deemed the president lacked the authority to impose them under the International Emergency Economic Powers Act (IEEPA). The Court will hear arguments in early November, marking a significant evaluation of a key component of Trump’s economic policy.
The tariffs, ranging from 10% to 50% on various trading partners, were enacted under the justification of addressing what Trump characterized as a national emergency due to trade imbalances affecting U.S. national security. With the litigation ongoing, these tariffs have remained in effect despite a recent federal appellate court decision stating that Trump exceeded his authority, a decision that also reaffirmed that Congress retains the power to impose taxes and tariffs.
The origin of the challenge to these tariffs began with a coalition of small businesses and a dozen states, disputing the legality of Trump’s invocation of IEEPA. The 1977 law permits the president to act in response to unusual threats to national security, foreign policy, or the economy, but Trump’s application of the law for broad tariffs is unprecedented.
If the Supreme Court affirms the lower courts’ findings and rules the tariffs illegal, it may lead to the United States refunding billions in collected tariffs. Additionally, existing trade agreements with countries like the UK and Japan, as well as those currently under negotiation, could face significant challenges. Following the announcement from the Supreme Court, Trump expressed confidence in ongoing trade discussions with India, highlighting the administration’s continued engagement in tariff negotiations through other legal avenues, although these are more limited in scope.
Source: https://www.bbc.com/news/articles/cd07exzr418o?at_medium=RSS&at_campaign=rss