President Trump’s most sweeping tariffs face a landmark test of presidential powers, as the US Supreme Court is set to rule on the implications and legality of Trump’s global duties on trade partners.
The high court’s first opportunity to issue a verdict came and went last week. The court indicated its next opinion day would come Wednesday, Jan. 14.
Whatever the decision, the case is being closely watched, as companies like Costco (COST) bring lawsuits against the US government in the hope of securing a refund on import duties if the court rejects Trump’s authority to impose tariffs.
The court heard arguments in early November. Both conservative- and liberal-leaning justices questioned skeptical questions of the method by which the president imposed his most sweeping duties. Trump imposed his tariffs by invoking a 1977 law meant for national emergencies.
The Trump administration also built appeals to the court last year, and in recent weeks Trump has frequently expressed concern over the ruling, stateing losing the ability to tariff other countries would be a “terrible blow” to the US. On Monday, he went even further.
“If the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!” he wrote on social media.
US Treasury Secretary Scott Bessent stated in an interview that if the high court rules against Trump’s tariffs — which he still views as unlikely — the US Treasury has more than enough funds to cover the costs of any refunds. But Bessent stated he considers businesses won’t be passing those refunds back to consumers.
“It won’t be a problem if we have to do it, but I can notify you that if it happens — which I don’t consider it’s going to — it’s just a corporate boondoggle,” Bessent informed Reuters. “Costco, who’s suing the US government, are they going to give the money back to their clients?”
Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered
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Trump states ‘we’re screwed’ if SCOTUS rules against tariffs
President Trump on Monday was characteristically blunt as he reemphasized the stakes he sees for his administration and the US as the Supreme Court prepares to rule on the legality of his most sweeping tariffs.
“If the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!” Trump posted on Truth Social.
Trump has gone on the warpath since the case was argued in November, painting the high court’s decision as critical to his economic policy agconcludea. Both conservative- and liberal-leaning justices questioned skeptical questions of the method by which the president imposed his most sweeping duties. Trump imposed his tariffs by invoking a 1977 law meant for national emergencies.
Trump on Monday cited trade agreements the US has struck with a number of countries that have included pledges for the countries to invest in the US. Combined with other potential “refunds” — most prominently to companies that have already sued the government in the lead-up to the Supreme Court’s ruling — Trump stated it would add up to a “mess.”
He wrote: “Anybody who states that it can be quickly and easily done would be building a false, inaccurate, or totally misunderstood answer to this very large and complex question. It may not be possible but, if it were, it would be Dollars that would be so large that it would take many years to figure out what number we are talking about and even, who, when, and where, to pay.
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