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 Friday. But after a flurry of speculation in the past few days, the justices did not release their opinion in the tariff case. 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 asked 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 made appeals to the court last year, and in recent weeks Trump has frequently expressed concern over the ruling, saying losing the ability to tariff other countries would be a “terrible blow” to the US.
“Because of Tariffs, our Country is financially, AND FROM A NATIONAL SECURITY STANDPOINT, FAR STRONGER AND MORE RESPECTED THAN EVER BEFORE,” Trump said in another post on Monday.
US Treasury Secretary Scott Bessent said 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 said, he thinks 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 tell you that if it happens — which I don’t think it’s going to — it’s just a corporate boondoggle,” Bessent told Reuters. “Costco, who’s suing the U.S. 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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