What to know about the Supreme Court arguments over Trump’s tariffs

**Supreme Court to Decide Fate of Trump’s Emergency Tariffs**

WASHINGTON — Three lower courts have ruled illegal President Donald Trump’s use of emergency powers to impose worldwide tariffs. Now, the Supreme Court—featuring three justices appointed by Trump who are generally favorable toward expanded presidential power—will have the final say.

In roughly two dozen emergency appeals, the justices have largely sided with Trump, temporarily allowing parts of his aggressive second-term agenda to take effect while lawsuits play out. However, the case being argued Wednesday marks the first time the court will issue a definitive decision on a major Trump policy.

**Why This Case Matters**

The stakes are enormous, both politically and financially. Tariffs have been central to Trump’s economic and foreign policy strategy, and he has described a negative Supreme Court ruling as a potential “disaster.” The outcome will have broad implications for presidential powers and the economic future of the United States.

**Understanding Tariffs**

Tariffs are taxes on imports. They are paid by companies importing finished products or parts, with the added cost often passed on to consumers. Through September, the government reported collecting $195 billion in revenue from tariffs.

The Constitution gives Congress the authority to impose tariffs. However, Trump claimed extraordinary power to act without congressional approval by declaring national emergencies under the 1977 International Emergency Economic Powers Act (IEEPA).

In February, he invoked IEEPA to impose tariffs on Canada, Mexico, and China, arguing that the illegal flow of immigrants and drugs across the U.S. border constituted a national emergency demanding further action from these countries. By April, Trump imposed worldwide tariffs after declaring America’s longstanding trade deficits “a national emergency.”

**Legal Challenges**

Libertarian-backed businesses and several states challenged Trump’s tariffs in federal court. They secured favorable rulings from:

– A specialized trade court
– A district judge in Washington, D.C.
– A business-focused appeals court also in the nation’s capital

These courts found that Trump could not justify the tariffs under the emergency powers law, which doesn’t mention tariffs. However, the courts allowed the tariffs to remain in place while the legal process continued.

**The ‘Major Questions’ Doctrine**

The appeals court relied on the “major questions” legal doctrine, created by the Supreme Court. This doctrine requires Congress to clearly address matters of “vast economic and political significance.” It previously doomed several Biden administration policies, including:

– The eviction moratorium during the coronavirus pandemic
– A vaccine mandate for large businesses
– Student loan forgiveness totaling $500 billion over 10 years

In comparison, the stakes in the Trump tariff case are even higher—tax revenues from these tariffs are estimated to reach $3 trillion over ten years. Challengers to the tariffs have cited writings by Trump appointees Amy Coney Barrett, Neil Gorsuch, and Brett Kavanaugh, urging the court to apply similar limitations to Trump’s signature policy.

For example, Barrett compared ambiguous congressional instructions to a babysitter’s vague directive to “make sure the kids have fun,” noting that such instructions could be interpreted in dramatically different ways. Kavanaugh, however, has suggested that the court should avoid imposing such limiting standards in foreign policy and national security contexts.

A dissenting appellate judge also argued that Congress intentionally gave presidents more leeway under the emergency powers law.

**A Renewed Nondelegation Challenge**

Some businesses challenging the tariffs have also raised a separate constitutional argument, claiming Congress cannot delegate its taxing power to the president. The so-called “nondelegation principle” hasn’t been used by the Supreme Court in 90 years, since striking down parts of the New Deal. Justice Gorsuch, joined by Justices Alito and Thomas, recently authored a dissent advocating for stricter limits on congressional delegations of power.

**Expedited Supreme Court Review**

The Supreme Court agreed to hear the tariff case in September and scheduled arguments less than two months later—a rapid turnaround by its standards. This likely means the justices will act swiftly. While most high-profile cases take half a year or more to resolve, the court has demonstrated an ability to decide quickly when necessary.

For example, the justices recently issued a unanimous ruling only a week after hearing arguments in the TikTok case, upholding a law requiring the popular social media app to be banned unless sold by its Chinese parent company. Trump has frequently intervened to keep laws like these from taking effect while negotiations continue.

**What’s Next?**

The Supreme Court’s upcoming decision on Trump’s emergency tariffs will shape both the balance of power between Congress and the presidency and the economic landscape for years to come. Observers across the political and business spectrum are watching closely as the justices prepare to weigh in on this landmark case.
https://www.clickorlando.com/business/2025/11/05/what-to-know-about-the-supreme-court-arguments-over-trumps-tariffs/

Stock futures climb as investors await Supreme Court showdown on Trump tariffs and shareholder vote on Musk’s $1 trillion pay package

Futures tied to the Dow Jones Industrial Average rose 107 points, or 0.22%. S&P 500 futures were up 0.28%, and Nasdaq futures added 0.30%. These gains would extend Friday’s rally.

The yield on the 10-year Treasury fell 1.8 basis points to 4.083%. Meanwhile, the U.S. dollar inched up 0.06% against the euro and 0.16% against the yen. Gold dipped 0.11% to $3,992 per ounce.

In commodity markets, U.S. oil futures rose 0.64% to $61.37 a barrel, while Brent crude climbed 0.62% to $65.17. The gains came as OPEC+ signaled it will pause its production increases next year.

Looking ahead, the Supreme Court is set to hear arguments on Wednesday in a case challenging former President Trump’s authority under the International Emergency Economic Powers Act (IEEPA) to impose so-called reciprocal tariffs related to the fentanyl trade. Lower courts have ruled against Trump, but some trade experts believe there is still a chance the high court could decide in his favor.

On Sunday, Treasury Secretary Scott Bessent expressed optimism about the Supreme Court’s decision, citing China’s strict rare earths export restrictions that threatened various industries and critical technologies. “The president was able to push back using his IEEPA powers,” Bessent told Fox News Sunday. “If that’s not use of an emergency power at an emergency time, I don’t know what it is.”

In corporate news, Tesla shareholders will gather on Thursday for the company’s annual meeting to vote on Elon Musk’s $1 trillion compensation package. Chairwoman Robyn Denholm urged shareholders to support the deal, warning in a letter on Monday that the company risks losing significant value if the deal fails and Musk chooses to step down as CEO.

Denholm emphasized that the historic compensation package is needed to motivate Musk as Tesla pushes further into artificial intelligence, robotics, and autonomous driving. If approved, Musk will gradually receive more than 420 million Tesla shares, contingent upon meeting aggressive growth targets, including delivering 20 million Tesla vehicles and having 1 million robotaxis in commercial operation.

Musk himself told analysts during Tesla’s earnings call last month that the proposal is designed to ensure he cannot be sidelined. “It’s called compensation, but it’s not like I’m going to go spend the money,” he said. “It’s just, if we build this robot army, do I have at least a strong influence over that robot army, not current control, but a strong influence? That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”

Meanwhile, elections in New York City, New Jersey, and Virginia could shift the political narrative in Washington, D.C., where lawmakers remain deadlocked over the government shutdown. The election outcomes could motivate one party to reach a deal sooner rather than later, paving the way for federal employees to be paid and benefits to resume.

Reopening the government would also restart the flow of vital economic data. Until then, only private-sector sources will be available, including the Institute for Supply Management’s manufacturing index on Monday, ADP’s monthly payroll report on Wednesday, and ISM’s services index later that same day.
https://fortune.com/2025/11/02/stock-market-today-dow-futures-trump-tariffs-supreme-court-elon-musk-pay-package-tesla-shareholder-vote/

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