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Welcome to The Logoff: Donald Trump’s tariffs are unlawful, the Supreme Court said on Friday.
What just happened? In a 6-3 decision, the Court struck down the sprawling tariffs regime that has been a centerpiece of Trump’s second-term foreign policy.
Specifically, the Court concluded that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs is equivalent to imposing a tax on imports, which he cannot legally do.
What does this mean for me? For the time being, probably not much. Just as prices took time to increase after Trump imposed his tariffs last year, it will take time for Friday’s decision to affect prices in the opposite direction (and some prices may not fall at all). But in the long run, my colleague Eric Levitz explains, the Court’s decision could save you around $1,000 annually and boost the economy by easing unemployment and accelerating growth.
Does this mean we’re done worrying about tariffs? No. Some tariffs, like those on aluminum and steel, remain in effect, and Trump has already said he will attempt to resurrect the rest of his tariffs regime using other methods. In a Friday afternoon press conference, Trump said he would use an untested trade provision called Section 122 to reimpose a universal 10 percent tariff, and he has other tools as well.
But whatever he tries to do, it won’t be nearly as easy as IEEPA was: How high Section 122 tariffs can be, and how long they remain in effect, are both capped.
There’s also the question of the tariffs that have already been paid. The Supreme Court didn’t address whether that money would be refunded in their decision, but some companies, such as Costco, have already sued the US to recoup tariffs paid on imports. More suits are sure to come, and the US could be on the hook for as much as $175 billion.
And with that, it’s time to log off…
If you’re not following the story of Punch, the Japanese macaque monkey, I can’t recommend it enough — here’s an adorable video from CBS to get you caught up.
I’m also (still) loving Rodger Sherman’s great Winter Olympics newsletter, which has been keeping me informed and entertained all Games long.
Thanks for reading, have a great weekend, and we’ll see you back here on Monday!
