President Trump has called “tariff” the most beautiful word in the English language, and he has staked his economic fortunes on using tariffs to level the economic playing field with other nations.
He announced his first round of tariffs on “Independence Day.” April 2. Five months later, on August 29, an appeals court ruled that, as president, Trump lacks the authority to impose such tariffs. As is his customary habit, Trump quickly took to Truth Social to express his feelings:
PLAY THE AUDIO BY PUSHING THE BUTTON BELOW
“ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end.”
Next stop is the U.S. Supreme Court, which will no doubt take up and rule on today’s 7-4 decision by the U.S. Court of Appeals for the Federal Circuit. That ruling said Trump lacks authority under the International Emergency Economic Powers Act, or Ieepa.
“The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax,” the unsigned majority opinion said.
The appeals court let the tariffs stand until Oct. 14, at which point the Supreme Court will have either ruled on the case or taken it up on appeal, which would keep the tariffs in place until the high court reached is decision.
In short, the fate of Trump’s economic policy — perhaps even his presidency — rests with two justices — Chief Justice. John Roberts and Associate Justice Amy Coney Barrett, both of whom have at significant times ruled against the president.
Associate Justice Brett Kavanaugh might also be a fence-sitter. Only Associate Justices Neil Gorsuch, Samuel Alito, and Clarence Thomas seem Trump certain (though Gorsuch has also wavered in the past).
I, for one, will not dare speculate on what will happen to the stock indecies if the Supreme Court sides with the Appeals Court’s decision — would they skyrocket downwards or upwards?
Note, however, that Trump’s tariffs on steel, aluminum, auto parts and the like seem safe as they were initiated under a separate piece of legislation.