U.S. President Donald Trump decided not to participate in the Supreme Court’s oral arguments regarding his tariff policies, emphasizing, “It’s not about me.” Treasury Secretary Scott Bessent was anticipated to be the most notable figure observing the proceedings until comedian John Mulaney unexpectedly appeared. Mulaney, who previously discussed Supreme Court arguments and stand-up comedy on lawyer Neal Katyal’s podcast, attended the session where Katyal represented small businesses suing the Trump administration.
Katyal immediately highlighted the issue, stating, “Tariffs are taxes that transfer money from Americans to the U.S. Treasury,” emphasizing that only Congress has the authority to impose taxes. Trump’s Solicitor General, John Sauer, attempted to argue that the tariffs were not taxes, but faced skepticism from the court, including Chief Justice John Roberts. The justices questioned who ultimately bears the cost of the tariffs, with Roberts suggesting that the tariffs could be increasing domestic revenue.
The case revolves around Trump’s use of the 1977 International Economic Emergency Powers Act to impose tariffs, a move unprecedented by any previous president. The Trump administration faced losses in lower courts, with appeals court judges questioning the president’s authority to impose tariffs without Congress’s explicit approval. The Supreme Court justices, particularly the conservative judges, displayed skepticism towards the administration’s arguments during the hearing.
The court’s decision is eagerly awaited, with analysts predicting a potential rejection of the tariffs. If deemed illegal, the Treasury may have to reimburse the $90 billion collected through the tariffs. However, the ruling may not impact tariffs affecting the Canadian economy, specifically those imposed by Trump on steel, aluminum, and other products. These Canada-specific tariffs, particularly those related to the Canada-U.S.-Mexico Agreement, could potentially be overturned, impacting a small portion of Canadian exports. Official U.S. government data indicates that nearly $1.97 billion in tariffs has been collected from Canadian imports this year.