The US Supreme Court has agreed to review the legality of President Donald Trump’s tariffs, taking up a challenge to his signature economic policy. The court will hear arguments in early November, a move that indicates the justices aim to resolve the case swiftly. A federal appeals court previously ruled that Trump exceeded his authority by imposing these tariffs; however, the tariffs remain in place for now.
At stake are import taxes affecting trillions of dollars in international commerce. A ruling favouring Trump would strengthen presidential power, while striking down the levies could significantly reduce the average US effective tariff rate, potentially forcing the US to refund tens of billions of dollars, according to Bloomberg Economics analyst Chris Kennedy. It could also disrupt preliminary trade deals that Trump has negotiated with some countries.
The challenged taxes include Trump’s April 2 tariffs, which impose levies of 10-50 per cent on most US imports depending on the country they come from. These April 2 tariffs represented the most significant increase in US import taxes since the 1930s. The appeal also covers tariffs Trump imposed on Canada, Mexico and China, implemented under the premise of addressing fentanyl trafficking.
