On Wednesday, the Trump administration will argue before the US Supreme Court regarding the legality of tariffs it has imposed, which several small businesses and states contest as illegal. Should the court rule in favor of these plaintiffs, it could disrupt Trump’s trade strategy and require the government to potentially refund billions in collected tariffs.
The upcoming decision holds considerable implications, as tariffs have cost various businesses, including Learning Resources, a toy seller, approximately $14 million this year alone. Company CEO Rick Woldenberg noted that the tariffs have forced significant operational changes. Similarly, Collaborative Coffees has incurred roughly $1.3 million in tariffs since April, and business co-founder Bill Harris indicated that they are trying to prepare for the uncertain outcome of the court case.
The Supreme Court’s ruling will address broader questions about presidential power, particularly regarding the use of the 1977 International Emergency Economic Powers Act (IEEPA), which has been invoked by Trump to impose tariffs. Opponents argue that the law does not specifically grant the authority to impose tariffs and emphasize that taxation powers generally lie with Congress.
As the Supreme Court prepares to review the case, three lower courts have previously ruled against the Trump administration. The Court has until June to issue its decision, which could affect the almost $90 billion reported in import taxes already paid. Some analysts forecast that this amount could increase significantly if the court delays its ruling.
The outcome of this case is expected to influence various international trade agreements, including those with the European Union, which are currently under consideration pending the Supreme Court’s decision. As businesses and nations await the verdict, the overall impact of the tariffs continues to concern many stakeholders involved.
Source: https://www.bbc.com/news/articles/cn4jyk9jyv3o?at_medium=RSS&at_campaign=rss