Good morning, and welcome to our live coverage of US politics. The much-anticipated US Supreme Court ruling on the legality of Donald Trump's tariffs is expected in the coming weeks, with the Reuters news agency reporting it could come as early as Tuesday.
Legal Challenges to Presidential Authority
Those challenging the tariffs, which include some small businesses and US states, argue the president exceeded his authority when imposing the sweeping levies last year. Two lower courts have already found that the president did not have the authority to impose global tariffs, which were brought in using emergency powers allowing the president to issue immediate orders and bypass Congress.
Donald Trump announced sweeping tariffs on some of its largest trading partners last year, upending decades of US trade policy.
Potential Outcomes and Implications
The Supreme Court, which is dominated by conservative justices, could throw out the tariffs – the cornerstone of Trump's economic agenda – and force the president to send refunds to the US importers that paid them. This decision would mark a significant judicial check on executive power in trade matters.
But if the Supreme Court does rule Trump overstepped his authority under the International Emergency Economic Powers Act, or IEEPA, to impose the tariffs, the White House has other ways it can bring in import taxes. This suggests the administration is prepared for multiple scenarios to maintain its trade policy stance.
Administration's Contingency Plans
In a 15 January interview with the NY Times published on Monday, the US trade representative, Jamieson Greer, said the administration would "start the next day" to replace the tariffs with other levies if the ruling went against Trump. "The reality is the president is going to have tariffs as part of his trade policy going forward," Greer emphasised, highlighting the administration's determination to persist with protectionist measures.
Last week, Trump said it would be "a complete mess" if the court were to strike down his trade tariffs, which he said would be difficult to reverse because businesses and countries could claim refunds. This comment underscores the potential economic and administrative complexities involved in unwinding the tariff regime.
