US Supreme Court postpones ruling on Donald Trump's tariffs
What's the story
The US Supreme Court has postponed its decision on a major legal challenge to President Donald Trump's tariff regime. The case, which questions whether Trump overstepped his authority in imposing global tariff measures, was not ruled on January 9 either. With the justices now heading into a four-week recess, the earliest possible date for a decision seems February 20, when the court is expected to release opinions.
Tariff details
The case revolves around Trump's April 2 tariff rollout
The case centers on Trump's extensive tariff rollout on April 2, dubbed his "Liberation Day" initiative. The measures imposed duties of up to 50% on a wide range of imports, in addition to separate levies on goods from Canada, Mexico and China. The administration defended these actions citing concerns over fentanyl trafficking and national security under a 1977 statute, giving presidents special authority during declared emergencies.
Legal concerns
Justices express reservations over the law's applicability
During arguments on November 5, several justices expressed doubts about the applicability of the law for tariffs of such magnitude and extent. The court's decision to expedite the challenge had led critics to expect a relatively quick ruling. However, its failure to do so today has extended uncertainty for governments and businesses alike, including India which faces a combined tariff burden of 50%.
Impact assessment
Potential implications of a ruling against the administration
A ruling against the administration could have major implications, potentially triggering over $130 billion in tariff refunds and diminishing Trump's ability to threaten new trade penalties. It would also be his biggest courtroom defeat since returning to the White House. Treasury Secretary Scott Bessent has defended the strategy, arguing that they're using "the economic might of the US to avoid a hot war."
Alternative strategies
Trump's warning and potential backup plans
Trump has warned that if the Supreme Court rules against the US on this "National Security bonanza," they would be in trouble. The case is now seen as a major test of presidential trade powers and whether the court will limit executive authority. Administration officials have hinted at backup plans, with trade adviser Jamieson Greer suggesting Trump could use other laws like Section 301 if the court limits presidential authority under emergency statute.