The Supreme Court is negotiating US President Donald Trump’s tariff policy. Since the beginning of his second term in office, the Republican has imposed tariffs on numerous countries, including on imports of products from the EU. Now the highest court is clarifying whether the US government’s actions were legally sound. There will now be an oral hearing in court for the first time.
What exactly is it about?
It’s less about the question of whether tariffs should even exist. The focus of this case is on the legal reasoning used by the US government for its aggressive tariff policies. Trump invoked an emergency law from 1977. He saw the state of emergency in the country as fulfilled: there was an imbalance in international trade to the detriment of the USA. The USA was treated unfairly.
Congress – the US Parliament – is actually responsible for tariffs. But with the emergency law, the president can issue decrees himself in the event of a crisis without having to go to parliament.
Why is the Supreme Court even hearing the case?
Because Trump is resisting an appeals court decision. At the end of August, Trump denied the authority to use the emergency law to impose far-reaching tariffs on imported products. The judges had pointed out that tariffs were the core competence of the US Congress. Trump appealed, so the ruling did not take effect. And Trump’s tariffs remained in place. Then the Supreme Court came into play.
Will Trump come in person?
No, he will be in Miami, the White House announced. Nevertheless, he set the tone in advance: This was one of the most important cases that the Supreme Court had ever dealt with for America. There is a lot at stake for Trump. Tariffs have become a central element of his term in office.
When is there a verdict?
That is unclear. There could be a verdict soon, but not until next year. When asked by dpa, the Supreme Court said that the court generally aims for a decision within an ongoing procedural period in which the hearing of a case is taking place. The current period began in the fall and ends next summer.
What will become of the EU tariffs?
The impact of the case on the EU and thus also the tariffs that affect German imports to the USA are unclear. If the court comes to the conclusion that Trump wrongly relied on the emergency law, it is unclear what the concrete consequences will be. Also for all other countries.
What is conceivable?
If the court does not accept the emergency law as a legal argument, the government could try to change its argument to maintain the tariffs. The question is also what happens in cases where the US government has agreed to trade agreements with other countries that include tariffs. It is also possible that the ruling relates to a specific period during which Trump imposed tariffs. The lower courts originally dealt with the country-specific tariffs first announced at the beginning of April, which affect dozens of US trading partners.