WASHINGTON — The Trump administration is pushing the Supreme Court to swiftly address the president’s emergency tariffs case due to potential “catastrophic” economic impacts for the U.S., according to a legal filing. Treasury Secretary Scott Bessent emphasized that $750 billion to $1 trillion in tariff revenue is at risk if the case follows the usual session timeline, concluding in June 2026. The U.S. might need to refund import taxes paid by domestic companies, Bessent indicated.
President Donald Trump and officials have requested the Supreme Court overturn a recent federal appellate decision affirming he lacks authority to impose tariffs under the International Economic Emergency Powers Act (IEEPA). Trump is the first president to use the IEEPA for tariffs, and the ruling supports an earlier U.S. Court of International Trade decision. The ruling is on hold pending appeal.
Tariffs Impacting Domestic Purchasers
Trump began implementing extensive tariffs in February, escalating them due to declared national emergencies related to illegal fentanyl smuggling and trade deficits. A trade deficit occurs when the U.S. imports more from a country than it exports to them. Domestic businesses now pay 10% to 50% tariffs on most imports, with the government collecting nearly $82 billion by June 30, as reported by U.S. Customs and Border Protection data.
The tariffs faced legal challenges from private businesses and a dozen states, led by Democratic attorneys general, including Arizona, Colorado, Maine, Minnesota, Nevada, New Mexico, and Oregon. Plaintiffs include V.O.S. Selections, a New York company importing wine and spirits, a Utah plastics producer, a Virginia children’s electricity kit maker, a Pennsylvania fishing gear company, and a Vermont women’s cycling apparel company.
Impact on Trade Frameworks
Bessent argued that the ruling threatens trade frameworks with nations like Japan, Indonesia, the UK, the Philippines, Vietnam, South Korea, and the EU. Recent unofficial deals promise substantial foreign investment for reduced tariffs. “World leaders are questioning the President’s authority to impose tariffs, walking away from negotiations, and imposing different negotiating strategies. The court’s ruling has removed significant leverage for securing optimal trade deals for Americans,” Bessent wrote in an attached declaration to the administration’s motion to expedite the case.
Solicitor General John Sauer requested the Supreme Court take the case, arguing the tariffs are the administration’s “most significant economic and foreign-policy initiative,” necessary to address trade deficits and curb fentanyl flow. Sauer, Trump’s former defense attorney, represented him in the high court last year.
—
Read More Montana News
