The US Supreme Court is getting ready to make a decision on President Trump’s tariffs. It was thought the court would rule last month, however, while three decisions were released, there was no word on the tariff case. Now the court is set to decide whether the president acted legally or if he overstepped his power by not going through Congress first.
The court heard arguments last year as to whether Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when enforcing tariffs. The president said that the US may have to “unwind” trade deals if it loses the Supreme Court case and warned of a “complete mess” if tariffs were struck down. Treasury Secretary Scott Bessent said that the US has other options in case of defeat.
On Wednesday, Japan announced it will invest up to $36 billion in US gas, oil, and critical minerals in the first phase of its $550 billion commitment under the tariff and trade deal it struck with the US last year.
“Our MASSIVE Trade Deal with Japan has just launched!” Trump posted Tuesday on social media. “The scale of these projects are so large, and could not be done without one very special word, TARIFFS.”
Meanwhile, Trump plans to roll back some tariffs on metals, including on steel and aluminum goods, as he and his administration seek to battle an affordability crisis ahead of the midterm elections.
The move comes after he faced a rare rebuke over his tariff regime, as six members of his own party crossed lines in the House of Representatives to vote to scrap Trump’s duties on Canada.
But Trump himself appears to be worried about the consequences, as The Financial Times reported that the current 50% tariffs on steel and aluminum could soon see carveouts in a similar manner to Trump’s reductions on certain food imports last year.
Trump has, however, kept up his threats in recent weeks, part of a recent blitz aimed at allies that rivals his bluster from early in his second term.
Trump threatened to hit Canada’s aircraft imports with a 50% tariff and said the US would also decertify all new jets from the likes of Bombardier (BDRBF), claiming Canada has used certification hurdles to effectively ban the sale of US Gulfstream jets. He also threatened to impose 100% tariffs on Canada over that nation’s trade deal with China.
Meanwhile, Mexico is facing the possibility of levies after Trump promised to impose new tariffs on countries providing oil to Cuba.
Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered
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Japan, US reach $36B of gas, mineral deals in Trump pact
Japan plans to invest up to $36 billion in US oil, gas, and critical mineral projects, part of Tokyo’s $550 billion commitment under the trade agreement it struck with President Trump last year.
“Our MASSIVE Trade Deal with Japan has just launched!” Trump posted on Tuesday on social media. “The scale of these projects are so large, and could not be done without one very special word, TARIFFS.”
Japan’s Prime Minister Sanae Takaichi said that the projects will help build more resilient supply chains through partnerships in crucial areas for economic security.
Bloomberg News reports:
