US Supreme Court

If the early indications are anything to go by, President Trump’s tariff case before the US Supreme Court (Scotus) looks set for a drubbing, with all but two of the court’s justices seemingly opposed to the policy, but those eyeing refunds may face a long fight.

Presenting the administration’s case to the conservative-stacked court, solicitor general Dean John Sauer faced strong scepticism that the president was not sidestepping Congress by using the International Emergency Powers Act (IEEPA) to legitimatise the tariffs.

Mr Sauer said: “We don’t contend what’s being exercised here is power to tax, it’s power to regulate foreign commerce, these are regulatory tariffs,” but Chief Justice John Roberts said: “The vehicle is imposition of taxes on Americans, it’s always been a core power of Congress.”

Worryingly for the administration, law firms consider Mr Roberts one of two conservative justices – along with Brett Kavanaugh – open to upholding the tariffs, with the other four likely to side with the three liberal justices in striking down the administration’s claim.

Given that President Trump appointed three of the nine during his first term, all the early chatter was that Scotus would go his way on everything; now he looks like facing a potential 7-2, if not 9-0, routing on his cornerstone policy when the justices vote.

Capital Alpha Partners co-founder James Lucier is reportedly predicting that the president has lost the support of one of the conservative justices he appointed, Amy Coney Barret, and he expects her to vote alongside the three liberal justices.

Responding on social media, the US president exclaimed: “That is NOT what our great founders had in mind! The whole thing is ridiculous! Other countries can tariff us, but we can’t tariff them??? It is their DREAM!!!

“Businesses are pouring into the US ONLY BECAUSE OF TARIFFS. HAS THE UNITED STATES SUPREME COURT NOT BEEN TOLD THIS??? WHAT THE HELL IS GOING ON??? President DJT.”

Accompanying President Trump’s anger over the trajectory of the hearing, he mused about offering Americans $2,000, funded by the tariffs, but given this would cost around $300bn and onl around $90bn in tariffs has been collected, there are obvious questions.

And these will only grow louder should the president lose the case before the Supreme Court, given that importers that have preserved their rights to a refund through timely protest may find themselves eligible for recouping the duties paid thus far.

Trade law and consultancy firm Sandler, Travis, & Rosenberg noted: “At least one of the Supreme Court justices expressed concern about the complexity of administering a potential refund process.

“And there is some speculation that even if the court overturns the tariffs, it could remand the case to a lower court for further proceedings on that issue, which could delay any potential refunds.”

If the administration was searching for some positive news over the weekend, tentative steps to end the longest government shutdown in US history have been made after seven Democrats and an independent within the Senate reached a compromise they would be happy to support.

As noted by the BBC, however, this early move towards reopening government, and The Loadstar’s readers getting flights back in the air, is very much a “procedural first step” that must still go before the House of Representatives.

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