The U.S. Supreme Court weighed in on the issue of tariffs on Wednesday. It is being called the most economically consequential case in decades, and it centers around a law giving the president power to regulate trade in response to an emergency.
A majority of the justices, including several conservatives, expressed doubts over President Trump’s recent use of emergency powers to impose tariffs.
“Could the president impose a 50% tariff on gas-powered cars and auto parts, just to deal with the unusual, extraordinary threat from abroad in climate change?” Justice Neil Gorsuch asked Solicitor General D. John Sauer.
“It’s very likely that can be done. This administration would say that’s a hoax. It’s not – it’s not a real crisis,” said Sauer.
During an appearance on CBN’s Faith Nation, Brad Jacob, Associate Dean of Regent University’s School of Law, explained the legal questions surrounding the issue.
“Does the president have any power to set tariffs, which are taxes? And the Constitution is very clear that it is Congress that has the power to tax not the president. And so, there’s a lot of different directions the court could do here,” Jacob told CBN News.
The outcome of the case has huge political implications for the president’s trade policy and economic consequences for consumers and businesses.
In April, the Trump administration declared an emergency over trade imbalances and the inflow of fentanyl and issued tariffs on several countries, including China, Mexico, and Canada.
Several states and a group of small business owners sued the administration over the tariffs.
“For nearly 40 years, my family has built this business from the ground up,” said Victor Schwartz, a plaintiff and founder of a wine and liquor importing business in New York. “Today, reckless tariffs threaten everything we’ve achieved. Let’s be clear, these tariffs aren’t paid by foreign governments or companies. It’s American businesses like mine and American consumers that are footing the bill.”
On CBS’s 60 Minutes, President Trump defended his actions, claiming tariffs will eventually rejuvenate the U.S. economy.
“Because of tariffs, we have the highest stock market we’ve ever had. Because of tariffs, 401K’s are at the highest level. I think it’s the most important subject discussed by the Supreme Court in 100 years,” said the President.
“Lower courts already said the tariffs were illegal but kept them in place,” commented Kelly Wright, CBN News White House Correspondent. “If the challengers win, the government could owe businesses billions in refunds. That is something one of the justices said could be a mess.”
Meanwhile, financial markets will be watching the outcome of the case, given how a potential ruling could impact the economy. The court is expected to hand down a decision by the end of June.
