President Donald Trump's use of sweeping tariffs faced sharp questioning at the Supreme Court on Wednesday, in a case with major implications for the president's agenda and the global economy.
A majority of justices, including several conservatives, expressed doubts about the White House's justification of the import duties, which the president has said are necessary to restore America's manufacturing base and fix its trade imbalance.
The measures are being challenged by a number of small businesses and a group of states, which contend that the president has overstepped his authority in imposing the levies, which are, in effect, a tax.
America's top court - which has a 6-3 conservative majority - usually takes months to reach big decisions, but many expect it to move faster in this case, which is also seen as the first major test of the Trump administration's push to expand presidential power.
And so is it your contention that every country needed to be tariffed because of threats to the defense and industrial base? I mean, Spain? France? asked Amy Coney Barrett, who was appointed to the court by Trump.
I could see it with some countries but explain to me why as many countries needed to be subject to the reciprocal tariff policy as are.
Billions of dollars in tariff payments are at stake. If the Trump administration loses, the government could have to refund some of the billions of dollars it has collected, a process that Barrett noted could become a complete mess.
The White House, which sent Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer to the hearing, has said that they will turn to other tariff authorities if the court does not rule in its favor.
The White House is always preparing for Plan B, White House press secretary Karoline Leavitt said ahead of the hearing.
Appearing on Fox News on Wednesday after the hearing, Trump said that he thought the day went well.
He added that it would be devastating for the country if the administration lost the case and called it one of the most important cases in the history of our country.
The case centers around a 1977 law, the International Emergency Economic Powers Act (IEEPA), which gives the president the power to regulate trade in response to an emergency.
Trump first invoked IEEPA in February to tax goods from China, Mexico, and Canada, saying drug trafficking from those countries constituted an emergency.
He deployed it again in April, ordering levies from 10% to 50% on goods from almost every country in the world. This time, he said the US trade deficit - where the US imports more than it exports - posed an extraordinary and unusual threat.
Those tariffs took hold in fits and starts this summer while the US pushed countries to strike deals.
The Trump administration has argued that the power to regulate includes the power to impose tariffs and that the nation faced unique crises – ones that were country-killing and not sustainable - necessitating emergency action by the president.
Arguing for the administration, Solicitor General John Sauer warned that if Trump's tariff powers were ruled illegal, it would expose the US to ruthless trade retaliation and lead to ruinous economic and national security consequences.
The justices' questions suggested they were wrestling with the implications of what a ruling in favor of the administration might mean for the future.
The justification is being used for power to impose tariffs on any product from any country in any amount, for any length of time, Chief Justice John Roberts said.
Under the Constitution, America's founding legal document, Congress, not the president, holds the power to tax, and the court has traditionally set limits on how much of that authority it can hand over.
If the court ruled for Trump in this case, Judge Neil Gorsuch, another conservative, wondered: What would prohibit Congress from just abdicating all responsibility to regulate foreign commerce?
The case has implications for an estimated $90bn worth of import taxes already paid - roughly half the tariff revenue the US collected this year through September, according to Wells Fargo analysts. Trump officials have warned that sum could swell to $1tn if the court takes until June to rule.
The hearing drew a full audience and stretched nearly three hours, far longer than the judges had officially allotted for the arguments.





















