Updated 2 min read
The US Supreme Court is meeting on Wednesday to consider the legality of President Trump’s global tariffs, in what many experts see as the next hurdle to face the US president and his tariff regime.
The court, which has a 6-3 conservative majority, has previously backed Trump in a series of decisions this year. It will hear the Trump administration’s appeal after multiple lower courts ruled that the president overstepped his authority when imposing his “Liberation Day” tariffs back in April.
At stake is the legitimacy of the president’s signature economic policy, with the outcome set to offer significant ramifications for the global economy and its businesses and consumers.
As Yahoo Finance correspondent Ben Werschkul has detailed, experts are split on the ultimate verdict the court will hand down. Trump, meanwhile, has made clear he considers the case to be of paramount importance to his legacy, even as his administration touts the other legal avenues he could use to impose the duties.
Trump on Tuesday said the case is “literally LIFE OR DEATH for our country.”
Read more: What Trump’s tariffs mean for the economy and your wallet
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The US and China reached a trade truce last week. The thaw means China will suspend additional export controls on rare earth metals and end investigations into US chip companies. Meanwhile, the US will pause some of Trump’s “reciprocal tariffs” on China for another year and will halt plans to slap a 100% tariff on Chinese exports to the US.
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China announced on Wednesday that it will remove its tariffs on US farm goods, in response to the US removing fentanyl related tariffs on Beijing’s exports.
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On Sunday, Trump said that the most advanced Nvidia (NVDA) chips will be reserved for US companies and kept out of China and other countries.
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A spat over an ad featuring the late Ronald Reagan continues between the US and Canada. The Canadian prime minister said recently he apologized to Trump over the ad.
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The US Senate has passed several resolutions that would end several of Trump’s country-specific tariffs, in a rare rebuke of the president from several members of his own party.
LIVE 7 updates
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Gorsuch leads conservative questioning of government over tariffs
Several of the Supreme Court’s conservative-leaning justices questioned a US government lawyer over President Trump’s authority to impose tariffs on trading partners, casting early doubt over their future.
Justice Neil Gorsuch, a Trump appointee, drew the most notice for his line of questioning to US Solicitor General D. John Sauer. Gorsuch posed a hypothetical in the case of a theoretical future Democratic president.
“Could the president impose a 50% tariff on gas-powered cars and auto parts to deal with the unusual and extraordinary threat from abroad of climate change?” Gorsuch asked.
Sauer responded that it was “very likely.”
Gorsuch also questioned Sauer over the president’s ultimate authority and when Congress could delegate it to the executive.
“What would prohibit Congress from just abdicating all responsibility to regulate foreign commerce — for that matter, declare war — to the president?” he asked.
Chief Justice John Roberts, along with Justices Amy Coney Barrett and Brett Kavanaugh — the latter two of whom were appointed by Trump — also at times posed skeptical questions. Kavanaugh asked why no president before Trump had invoked this authority, while Barrett questioned the across-the-board nature of the tariffs.
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Oral arguments ongoing
Oral arguments in the case involving President Trump’s tariffs are ongoing. (You can listen at the Supreme Court’s website.)
I am also enjoying following the SCOTUSBlog live blog, for those interested in catching up!
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Toyota reports a drop in profit as Trump’s tariffs hurt Japanese automakers
Toyota (TM) stock fell 2% in premarket trading on Wednesday after reporting a drop in profit in its third quarter earnings. The Japanese automaker said President Trump’s tariffs have harmed the sector.
The AP reports:
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China ends levies on US farm goods after fentanyl duties cut
China announced on Wednesday that it will remove tariffs on US farm goods in response to the US removing fentanyl-related tariffs on Beijing’s exports.
This latest move from China is part of the broader trade pact between President Trump and China’s Xi Jinping last week, when the two sides agreed to a one-year trade truce.
Bloomberg News reports:
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Trump tariffs’ fate rides on Supreme Court justices he picked
President Trump’s tariffs now rest largely in the hands of three of the US Supreme Court Justices that he appointed. The court will consider the fate of Trump’s tariffs on Wednesday.
Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett were all appointed by Trump and have generally backed the president in most of his emergency orders this year, allowing Trump to implement his policies on a temporary basis.
But this will be the first time the court addresses the issue of whether Trump overstepped his authority with his “Liberation Day” tariffs.
Bloomberg News reports:
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Looking to experts for how the Supreme Court will rule on tariffs? They aren’t sure either.
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Trade deals and $90B in tariff revenue: What’s riding on the landmark Supreme Court case
The next hurdle for President Trump, following his meeting with China’s leader Xi Jinping last week, will be the Supreme Court hearing on Wednesday, which will decide the legality of Trump’s “Liberation Day” tariffs.
Trump said he doesn’t plan to attend the hearing, but emphasized how important it is for the American people. So here’s what’s riding on the landmark case.
CNN reports:
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