President Donald Trump has warned that a Supreme Court ruling against his ability to impose tariffs would be “devastating” and cost the country $3 trillion.
Why It Matters
The Supreme Court is weighing up whether Trump has the authority to impose the wide-reaching raft of tariffs that have become a linchpin of his administration’s foreign policy. Lower courts have deemed the economic measures an overreach of power by the president without Congressional approval.
The Supreme Court’s decision could redefine the balance of power between the White House and Congress and set a precedent for how far presidents can go in invoking “national emergencies” to pursue economic or foreign-policy goals.
The court started hearing arguments on November 5.
What To Know
A ruling against the administration could unravel trade deals negotiated under the tariff framework and upend fiscal projections. The government may have to refund that money to the businesses that paid the duties.
A ruling in Trump’s favor could greatly expand the use of emergency powers in economic policy.
According to government data as reported in Newsweek, the tariffs have generated nearly $195 billion in revenue this year and are projected to yield $3 trillion over a decade.
Trump, in a post on Truth Social, said the “Supreme Court was given the wrong numbers.”
“The ‘unwind’ in the event of a negative decision on Tariffs, would be, including investments made, to be made, and return of funds, in excess of 3 Trillion Dollars,” the president said in his post.
“It would not be possible to ever make up for that kind of a ‘drubbing.’ That would truly become an insurmountable National Security Event, and devastating to the future of our Country—Possibly non-sustainable!”
Trump said earlier that the ruling from the Supreme Court would be “one of the most important in the History of the Country.”
A group of small businesses and states have brought the legal challenge to Trump’s use of the International Emergency Economic Powers Act, which bestows authority on the president to respond with economic measures in a national emergency.
Conservative and liberal judges alike in the Supreme Court have expressed criticism of the tariffs.
As the court deliberates, Trump has floated the possibility of sending out $2,000 checks to Americans, with the exception of “high-income people,” using the money the federal government has raised from tariffs.
What People Are Saying
President Donald Trump wrote on Sunday in a post to Truth Social: “People that are against Tariffs are FOOLS! We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price. 401k’s are Highest EVER. We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place. A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone.”
What Happens Next
The Supreme Court, which accepted the case on an expedited basis in September, is deliberating privately and could issue a ruling as soon as December, given the accelerated schedule.
