| |
Trump Pushes Back on SCOTUS Tariff Case02/23 06:13
The Supreme Court struck down President Donald Trump's far-reaching global
tariffs on Friday, handing him a stinging loss that sparked a furious attack on
the court he helped shape.
WASHINGTON (AP) -- The Supreme Court struck down President Donald Trump's
far-reaching global tariffs on Friday, handing him a stinging loss that sparked
a furious attack on the court he helped shape.
Trump said he was "absolutely ashamed" of some justices who ruled 6-3
against him, calling them "disloyal to our Constitution" and "lapdogs." At one
point he even raised the specter of foreign influence without citing any
evidence.
The decision could have ripple effects on economies around the globe after
Trump's moves to remake post-World War II trading alliances by wielding tariffs
as a weapon.
But an unbowed Trump pledged to impose a new global 10% tariff under a law
that's restricted to 150 days and has never been used to apply tariffs before.
"Their decision is incorrect," he said. "But it doesn't matter because we
have very powerful alternatives."
The court's ruling found tariffs that Trump imposed under an emergency
powers law were unconstitutional, including the sweeping "reciprocal" tariffs
he levied on nearly every other country.
Trump appointed three of the justices on the nation's highest court during
his first term, and has scored a series of short-term wins that have allowed
him to move ahead with key policies.
Tariffs, though, were the first major piece of Trump's broad agenda to come
squarely before the Supreme Court for a final ruling, after lower courts had
also sided against the president.
The majority found that it is unconstitutional for the president to
unilaterally set and change tariffs because taxation power clearly belongs to
Congress. "The Framers did not vest any part of the taxing power in the
Executive Branch," Chief Justice John Roberts wrote.
Justices Brett Kavanaugh, Samuel Alito and Clarence Thomas dissented.
"The tariffs at issue here may or may not be wise policy. But as a matter of
text, history, and precedent, they are clearly lawful," Kavanaugh wrote. Trump
praised his 63-page dissent as "genius."
The court majority did not address whether businesses could get refunded for
the billions they have collectively paid in tariffs. Many companies, including
the big-box warehouse chain Costco, have already lined up in lower courts to
demand refunds. Kavanaugh noted the process could be complicated.
"The Court says nothing today about whether, and if so how, the Government
should go about returning the billions of dollars that it has collected from
importers. But that process is likely to be a 'mess,' as was acknowledged at
oral argument," he wrote.
The Treasury had collected more than $133 billion from the import taxes the
president has imposed under the emergency powers law as of December, federal
data shows. The impact over the next decade has been estimated at some $3
trillion.
The tariffs decision doesn't stop Trump from imposing duties under other
laws. Those have more limitations on the speed and severity of Trump's actions,
but the president said they would still allow him to "charge much more" than he
had before.
Vice President JD Vance called the high court decision "lawlessness" in a
post on X.
Questions about what Trump can do next
Still, the ruling is a "complete and total victory" for the challengers,
said Neal Katyal, who argued the case on behalf of a group of small businesses.
"It's a reaffirmation of our deepest constitutional values and the idea that
Congress, not any one man, controls the power to tax the American people," he
said.
It wasn't immediately clear how the decision restricting Trump's power to
unilaterally set and change tariffs might affect trade deals with other
countries.
"We remain in close contact with the U.S. Administration as we seek clarity
on the steps they intend to take in response to this ruling," European
Commission spokesman Olof Gill said, adding that the body would keep pushing
for lower tariffs.
The Supreme Court ruling comes after victories on the court's emergency
docket have allowed Trump to push ahead with extraordinary flexes of executive
power on issues ranging from immigration enforcement to major federal funding
cuts.
The Republican president had long been vocal about the tariffs case, calling
it one of the most important in U.S. history and saying a ruling against him
would be an economic body blow to the country. But legal opposition crossed the
political spectrum, including libertarian and pro-business groups that are
typically aligned with the GOP. Polling has found tariffs aren't broadly
popular with the public, amid wider voter concern about affordability.
While the Constitution gives Congress the power to levy tariffs, the Trump
administration argued that a 1977 law allowing the president to regulate
importation during emergencies also allows him to set import duties. Other
presidents have used the law dozens of times, often to impose sanctions, but
Trump was the first president to invoke it for tariffs.
"And the fact that no President has ever found such power in IEEPA is strong
evidence that it does not exist," Roberts wrote, using an acronym for the
International Emergency Economic Powers Act.
Trump set what he called "reciprocal" tariffs on most countries in April
2025 to address trade deficits that he declared a national emergency. Those
came after he imposed duties on Canada, China and Mexico, ostensibly to address
a drug trafficking emergency.
A series of lawsuits followed, including a case from a dozen largely
Democratic-leaning states and others from small businesses selling everything
from plumbing supplies to women's cycling apparel.
The challengers argued the emergency powers law doesn't even mention tariffs
and Trump's use of it fails several legal tests, including one that doomed
then-President Joe Biden's $500 billion student loan forgiveness program.
Justices reject use of emergency powers for tariffs
The three conservative justices in the majority pointed to that principle,
which is called the major questions doctrine. It holds that Congress must
clearly authorize actions of major economic and political significance.
"There is no exception to the major questions doctrine for emergency
statutes," Roberts wrote. The three liberal justices formed the rest of the
majority, but didn't join that part of the opinion.
The Trump administration had argued that tariffs are different because
they're a major part of Trump's approach to foreign affairs, an area where the
courts should not be second-guessing the president.
But Roberts, joined by Justices Neil Gorsuch and Amy Coney Barrett, brushed
that aside, writing that the implications for international relations don't
change the legal principle.
Small businesses celebrated the ruling, with the National Retail Federation
saying it provides "much needed certainty."
Illinois toy company Learning Resources was among the businesses challenging
the tariffs in court. CEO Rick Woldenberg said he expected Trump's new tariffs
but hoped there might be more constraint in the future, both legal and
political. "Somebody's got to pay this bill. Those people that pay the bill are
voters," he said.
Anne Robinson, who owns Scottish Gourmet in Greensboro, North Carolina, said
she was "doing a happy dance" when she heard the news.
The 10% baseline tariff on U.K. goods put pressure on Robinson's business,
costing about $30,000 in the fall season. She's unsure about the Trump
administration's next steps, but said she's overjoyed for now. "Time to
schedule my 'Say Goodbye to Tariffs' Sale!"
|
|