Justices Question Legality of Trump’s Tariffs at Supreme Court

Article content

(Bloomberg) — US Supreme Court justices questioned President Donald Trump’s global tariffs, as arguments began in a case that could undercut his signature economic policy.

Article content

Justices including John Roberts and Amy Coney Barrett pressed US Solicitor General D. John Sauer on his contention that a 1977 law designed for emergency situations gives Trump the authority to collect tens of billions of dollars in tariffs a month.

Article content

Article content

“The vehicle is imposition of taxes on Americans, and that has always been the core power of Congress,” Roberts said.

Article content

Article content

The questioning came early on in a session likely to last more than two hours, and it didn’t give a clear indication of how the court will rule. The justices may have equally tough questions when the tariff challengers make their case in the second half of the argument.

Article content

Article content

A ruling against Trump could force more than $100 billion in refunds, remove a major burden on the US importers that are now paying the tariffs, and blunt an all-purpose cudgel the president has wielded against trading partners. More broadly, it would be by far the most significant pushback by the conservative-controlled Supreme Court against Trump’s assertions of powers that go well beyond any claimed by his White House predecessors.

Article content

A Trump victory would potentially set a far-reaching precedent letting presidents take sweeping actions in the name of addressing an emergency they have declared.

Article content

Trump says his tariffs are authorized under the 1977 International Emergency Economic Powers Act, a law that gives the president a panoply of tools to address national security, foreign policy and economic emergencies. The law doesn’t mention tariffs as one of those powers, though a key provision says the president can “regulate” the “importation” of property to deal with a crisis.

Article content

Article content

The challenged taxes include Trump’s April 2 “Liberation Day” tariffs, which impose taxes of 10-50% on most US imports depending on the originating country. Trump says those duties are warranted to address the longstanding national trade deficit. 

Article content

The high court clash also covers separate tariffs Trump said he imposed on Canada, Mexico and China to address fentanyl trafficking.

Article content

The court is considering two separate lawsuits filed by small businesses along with a third case pressed by 12 Democratic state attorneys general. All three lower courts to have ruled on the issue declared the tariffs to be unlawful.

Article content

—With assistance from Justin Wise.

Article content