Trump Tariffs Case Reaches Supreme Court

Lower federal courts have ruled that Trump lacked legal authority under the International Emergency Economic Powers Act, which he cited to impose so-called reciprocal tariffs on imports from several US trading partners and fentanyl tariffs on products from Canada, China, and Mexico.

The court's liberal justices immediately questioned Solicitor General D. John Sawyer about the legal justification for the Trump administration's tariffs, which critics say violate Congress's power to tax.

Sawyer, who is defending the tariff policy on the basis of its power to regulate foreign commerce, said, "These are regulatory tariffs. These are not revenue-raising tariffs."

Sawyer argued, "The fact that they generate revenue is just a coincidence."

Justice Sonia Sotomayor, one of the court's three liberal members, told Sawyer, "You say tariffs aren't taxes, but that's exactly what they are."

"They're extracting money, that is, revenue, from American citizens," Sotomayor said.

These tariffs start at a baseline of 10% on many countries and increase to 50% on goods from India and Brazil.

According to the Committee for a Responsible Federal Budget, if these tariffs are allowed to continue, the United States will receive $3 trillion in additional revenue by 2035. That group said last week that the federal government collected $151 billion from customs duties in the second half of fiscal year 2025, an increase of "nearly 300%" compared to the same period in fiscal year 2024.

Treasury Secretary Scott Bessant, who was scheduled to attend Wednesday's oral arguments, said in a court filing in September that if the Supreme Court declares the tariffs illegal and waits until next summer to issue a decision, the US could have to return $750 billion or more.

The Supreme Court will not rule on the case on Wednesday. It is unclear when the court will issue its decision. The case is seen as a key legal test for Trump, who has secured some favorable Supreme Court rulings on other policies during his second term in the White House.

Conservatives hold a 6-3 majority among the court's justices.

Trump argues that the tariffs are essential to the American economy and the safety of citizens, and put tremendous pressure on companies to manufacture their products in the United States.

In a social media post on Tuesday, Trump wrote, "Tomorrow's United States Supreme Court case is, quite literally, a matter of life and death for our country."

"Without this, we will be virtually helpless against other countries who have taken advantage of us for years. Our stock market continues to reach record highs, and our country is respected more than ever before," he said. "A large part of this is due to the economic security created by tariffs and the deals we have negotiated because of them."

Critics of tariffs say the financial losses are borne not by foreign manufacturers, but by American importers who pay them, and then pass most of the increased costs on to American consumers.

Trump had previously said he was considering engaging in oral arguments, which would have been a first for a sitting president.

On Sunday, he said, "I will not be in court on Wednesday because I don't want to distract from the importance of this decision."

He wrote, "In my opinion, this will be one of the most important and impactful decisions ever made by the United States Supreme Court."