The “Mornings with Maria” panel reacts to the Supreme Court’s high-stakes review of President Donald Trump’s emergency tariff powers, as the White House defends the tariffs as essential to U.S. national security and economic strength.
THE Supreme Court On Wednesday, arguments will be heard in the case challenging the legality of the tariff regime imposed by the Trump administration under a law linked to economic emergencies, with tens of billions of dollars in tariff revenue at stake.
The justices will hear arguments in a consolidated tariff case, known as Learning Resources v. Trump and Trump v. VOS Selections, Inc., brought by small businesses who challenged the constitutionality of tariffs imposed by the administration under the International Emergency Economic Powers Act (IEEPA).
While the Trump administration maintains that IEEPA grants the president the authority to impose tariffs, a federal district court and appeals court rejected that argument and ruled that the president exceeded his legal authority under the law, prompting the White House to appeal to the Supreme Court.
Billions of dollars in tariff revenue have been collected from U.S. businesses under the Trump administration’s IEEPA tariffs, which the Tax Foundation estimates have totaled more than $88 billion so far this year.
Trump warns we’ll have ‘struggle for years’ if Supreme Court rules against him on tariffs
The Trump administration’s IEEPA tariffs have so far raised more than $88 billion in tax revenue. (Sam Wolfe/Bloomberg via /Getty Images)
The Tax Foundation estimated that if the IEEPA tariffs remained in effect, they would raise nearly $1.8 trillion in tax revenue over the period 2025-34, reducing gross domestic product (GDP) by 0.4% and employment by 428,000 jobs before accounting for retaliation from trading partners.
He also estimates that the IEEPA tariffs will increase taxes by an average of $1,000 per American household this year, and by $1,300 per year thereafter.
The Trump administration has argued that eliminating the tariffs would harm the U.S. economy and undermine the president’s efforts to correct what he sees as unfair trade deals, as well as to relocation of manufacturing.
President Donald Trump said on Fox News’ “Sunday Morning Futures” that winning the tariff case is “vital to the interests of our country. We are the richest country there is. If we don’t do this, we will struggle for years to come.”
Trump says he won’t attend Supreme Court hearing on trade policies
The Supreme Court will evaluate the legality of the Trump administration’s IEEPA tariffs. (Valérie Plesch/photo alliance / Getty Images)
Critics of the tariffs say they cause economic harm, with prices being pushed up as U.S. importers pass on their higher tariff costs to consumers. price increases. These factors have contributed to a rise in inflation in recent months, while uncertainty over tariffs has weighed on hiring.
Dr. Wayne Winegarden, a senior economics fellow at the Pacific Free Market Research Institute, told FOX Business that “economic consequences IEEPA rates are troubling. Not only are tariffs directly stagflationary, they also create additional uncertainty detrimental to future economic activity. »
Winegarden said that while he is not a lawyer by training, the IEEPA tariffs raise constitutional questions and “usurp Congress’s tax powers and create a gigantic loophole that, if upheld, would allow future presidents to impose tariffs on American consumers and businesses for all sorts of dubious justifications.”
BESSENT SAYS ‘OPTIMISTIC’ AS SUPREME COURT EVALUATES FATE OF TRUMP’S ENTIRE BUSINESS AGENDA
President Donald Trump has argued that the United States needs its tariff policies to balance international trade and relocate manufacturing. (Brendan Smialowski/AFP via /Getty Images)
It is unclear how quickly the Supreme Court will rule on the issue. tariff matter after Wednesday’s arguments, but this could come in the coming weeks before the end of the year.
Dallas Dolen, U.S. TMT sector leader at PwC, told FOX Business that about $89 billion in tariff revenue has been collected this year and that figure is expected to reach $108 billion by the end of October – some or all of which could be refunded to the American companies who paid the tariffs if the Supreme Court rules against the administration.
“If the Supreme Court ultimately decides that the tariffs are illegal, the full amount could potentially be subject to reimbursement, depending on how the Court structures its decision,” Dolen said.
Dolen explained that the Trump administration has not explained how it would handle processing refunds to affected businesses, which would likely face “a complicated and lengthy process” to request a refund.
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“For now, companies are preparing for several possible outcomes. Many are modeling potential refund scenarios, reviewing their customs data and ensuring they can act quickly once a decision is made,” Dolen explained. “The companies best placed to respond will be those with clear documentation, coordinated internal teams ready to act quickly once the process is defined.”
