tariff

U.S. Ties Steel Tariff Relief to ‘Balanced’ EU Digital Rules

The United States is asking the European Union (EU) to change its tech regulations before reducing U. S. tariffs on steel and aluminum from the EU. EU ministers wanted to discuss their July trade deal, which included cuts to U. S. tariffs on EU steel and removing them from goods like wine and spirits. However, U. S. Commerce Secretary Howard Lutnick stated that the EU must first create a more balanced approach to its digital sector rules.

After a meeting with EU ministers, Lutnick mentioned they could address steel and aluminum issues together if the EU improved its regulations. European Trade Commissioner Maros Sefcovic noted that he didn’t expect any immediate breakthroughs with the U. S. but was hopeful to begin discussions about steel solutions. The July trade agreement set U. S. tariffs at 15% on many EU goods, while the EU agreed to lower some of its duties on U. S. imports, with potential implementation not expected until March or April pending approval from European leaders.

The U. S. currently has a 50% tariff on metals and has also applied tariffs on related products, raising concerns in the EU about the impact on their trade agreement. The EU seeks to have more of its products subjected only to low tariffs and is open to discussing regulatory cooperation in various areas, including energy and economic security, particularly related to China.

With information from Reuters

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Trump, like Biden before him, finds there’s no quick fix for inflation

President Trump’s problems with fixing the high cost of living might be giving voters a feeling of deja vu.

Just like the president who came before him, Trump is trying to sell the country on his plans to create factory jobs. The Republican says he wants to lower prescription drug costs, as did Democratic President Biden. Both tried to shame companies for price increases.

Trump is even leaning on a message that echoes Biden’s assertions in 2021 that elevated inflation is a “transitory” problem that will soon vanish.

“We’re going to be hitting 1.5% pretty soon,” Trump told reporters Monday. ”It’s all coming down.”

Even as Trump keeps saying an economic boom is around the corner, there are signs that he has already exhausted voters’ patience as his campaign promises to quickly fix inflation have gone unfulfilled.

Voter frustration

Voters in this month’s elections swung hard to Democrats over concerns about affordability. That has left Trump, who dismisses his weak polling on the economy as fake, floating half-formed ideas to ease financial pressures.

He is promising a $2,000 rebate on his tariffs and said he may offer 50-year mortgages — 20 years longer than any available now — to reduce the size of monthly payments. On Friday, Trump scrapped his tariffs on beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes and certain fertilizers, acknowledging that they “may, in some cases,” have contributed to higher prices.

But those are largely “gimmicky” moves unlikely to move the needle much on inflation, said Bharat Ramamurti, a former deputy director of Biden’s National Economic Council.

“They’re in this very tough position where they’ve developed a reputation for not caring enough about costs, where the tools they have available to them are unlikely to be able to help people in the short term,” Ramamurti said.

Ramamurti said the Biden administration learned the hard way that voters are not appeased by a president saying his policies would ultimately cause their incomes to rise.

“That argument does not resonate,” he said. “Take it from me.”

Biden on inflation

Biden inherited an economy trying to rebound from the COVID-19 pandemic emergency, which had shut down schools and offices, causing mass layoffs and historic levels of government borrowing. In March 2021, he signed into law a $1.9-trillion relief package. Critics said it was excessive and could cause prices to rise.

As the economy reopened, there were shortages of computer chips, kitchen appliances, autos and even furniture. Cargo ships were stuck waiting to dock at ports, creating supply chain issues. Russia’s invasion of Ukraine in early 2022 pushed up energy and food costs, and consumer prices reached a four-decade high that June. The Federal Reserve raised its benchmark interest rates to cool inflation.

Biden tried to convince Americans that the economy was strong. “Bidenomics is working,” he said in a 2023 speech. “Today, the U.S. has had the highest economic growth rate, leading the world economies since the pandemic.”

Though many economic indicators compared with those of other nations at the time largely supported his assertions, his arguments did little to sway voters. Only 36% of U.S. adults in August 2023 approved of his handling of the economy, according to a poll at the time by the Associated Press-NORC Center for Public Affairs Research.

Trump on inflation

Republicans made the case that Biden’s policies made inflation worse. Democrats are using that same framing against Trump today.

Here is their argument: Trump’s tariffs are getting passed along to consumers in the form of higher prices; his cancellation of clean energy projects means there will be fewer new sources of electricity as utility bills climb; his mass deportations made it costlier for the immigrant-heavy construction sector to build houses.

Former Biden administration officials note that Trump came into office in January with strong economic growth, a solid job market and inflation declining close to historic levels, only for him to reverse those trends.

“It’s striking how many Americans are aware of his trade policy and rightly blame the turnaround in prices on that erratic policy,” said Gene Sperling, a senior Biden advisor who also led the National Economic Council in the Obama and Clinton administrations.

“He is in a tough trap of his own doing — and it’s not likely to get easier,” Sperling said.

Consumer prices had been increasing at an annual rate of 2.3% in April when Trump launched his tariffs, and that rate accelerated to 3% in September.

The inflationary surge has been less than what voters endured under Biden, but the political fallout so far appears to be similar: 67% of U.S. adults disapprove of Trump’s performance, according to November polling data from AP-NORC.

“In both instances, the president caused a nontrivial share of the inflation,” said Michael Strain, director of economic policy studies at the American Enterprise Institute, a center-right think tank. “I think President Biden didn’t take this concern seriously enough in his first few months in office and President Trump isn’t taking this concern seriously enough right now.”

Strain noted that the two presidents have even responded to the challenge in “weirdly, eerily similar ways” by playing down inflation as a problem, pointing to other economic indicators and looking to address concerns by issuing government checks.

White House strategies

Trump administration officials have made the case that their mix of income tax cuts, foreign investment frameworks tied to tariffs and changes in enforcing regulations will lead to more factories and jobs. All of that, they say, could increase the supply of goods and services and reduce the forces driving inflation.

“The policies that we’re pursuing right now are increasing supply,” Kevin Hassett, director of Trump’s National Economic Council, told the Economic Club of Washington on Wednesday.

The Fed has cut its benchmark interest rates, which could increase the supply of money in the economy for investment. But the central bank has done so because of a weakening job market despite inflation being above its 2% target, and there are concerns that rate cuts of the size Trump wants could fuel more inflation.

Time might not be on Trump’s side

It takes time for consumer sentiment to improve after the inflation rate drops, according to research done by Ryan Cummings, an economist who worked on Biden’s Council of Economic Advisers.

His read of the University of Michigan’s index of consumer sentiment is that the effects of the post-pandemic rise in inflation are no longer a driving factor. These days, voters are frustrated because Trump had primed them to believe he could lower grocery prices and other expenses, but has failed to deliver.

“When it comes to structural affordability issues — housing, child care, education and healthcare — Trump has pushed in the wrong direction in each one,” said Cummings, who is now chief of staff at the Stanford Institute for Economic Policy Research.

He said Trump’s best chance of beating inflation now might be “if he gets a very lucky break on commodity prices” through a bumper harvest worldwide and oil production continuing to run ahead of demand.

For now, Trump has decided to continue to rely on attacking Biden for anything that has gone wrong in the economy, as he did last week in an interview with Fox News’ “The Ingraham Angle.”

“The problem was that Biden did this,” Trump said.

Boak writes for the Associated Press.

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White House explores $2,000 tariff dividend; budget experts are sceptical | Politics News

United States President Donald Trump is committed to providing Americans with $2,000 cheques using money that has come into government coffers from Trump’s tariffs.

On Wednesday, White House press secretary Karoline Leavitt told reporters that Trump’s staff is exploring how to go about making the plan a reality.

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The president proposed the idea on his Truth Social media platform on Sunday, five days after his Republican Party lost elections in Virginia, New Jersey and elsewhere largely because of voter discontent with his economic stewardship — specifically, the high cost of living.

A new AP-NORC poll finds that 67 percent of Americans disapprove of Trump’s handling of the economy, while 33 percent approve.

The tariffs are bringing in so much money, the president posted, that “a dividend of at least $2000 a person (not including high income people!) will be paid to everyone.’’

“Trump has taken to his favorite policymaking forum, Truth Social, to make yet another guarantee that Americans are going to receive dividend [cheques] from the revenues collected by tariffs,” Alex Jacquez, who served on the National Economic Council under former US President Joe Biden, said in a statement provided to Al Jazeera.

“It’s interesting that Trump’s arguments—which he has been pushing forward for several months now on Truth Social—do not match the arguments that his lawyers are making in court. It seems he is trying to pressure the Justices by implying that this will be some massive economic disaster if they rule against the tariffs.”

Budget experts have scoffed at Trump’s tariff dividend plan, which conjured memories of the Trump administration’s short-lived plan for Department of Government Efficiency (DOGE) dividend cheques financed by billionaire Elon Musk’s federal budget cuts.

“The numbers just don’t check out,″ Erica York, vice president of federal tax policy at the nonpartisan Tax Foundation, told the Associated Press.

Details are scarce, including what the income limits would be and whether payments would go to children.

Even Trump’s US Treasury secretary, Scott Bessent, sounded a bit blindsided by the audacious dividend plan.

Appearing on Sunday on the ABC News programme This Week, Bessent said he hadn’t discussed the dividend with the president and suggested that it might not mean that Americans would get a cheque from the government. Instead, Bessent said, the rebate might take the form of tax cuts.

The tariffs are certainly raising money — $195bn in the budget year that ended September 30, up 153 percent from $77bn in fiscal 2024. But they still account for less than four percent of federal revenue, and have done little to dent the federal budget deficit, a staggering $1.8 trillion in fiscal 2025.

Budget wonks say Trump’s dividend math doesn’t work.

John Ricco, an analyst with the Budget Lab at Yale University, reckons that Trump’s tariffs will bring in $200bn to $300bn a year in revenue. But a $2,000 dividend — if it went to all Americans, including children — would cost $600bn. “It’s clear that the revenue coming in would not be adequate,” Ricco said.

The analyst also noted that Trump couldn’t just pay the dividends on his own. That would require legislation from Congress.

Moreover, the centrepiece of Trump’s protectionist trade policies — double-digit taxes on imports from almost every country in the world — may not survive a legal challenge that has reached the US Supreme Court.

In a hearing last week, the court’s justices sounded sceptical about the Trump administration’s assertion of sweeping power to declare national emergencies to justify the tariffs. Trump has bypassed Congress, which has authority under the US Constitution to levy taxes, including tariffs.

If the court strikes down the tariffs, the Trump administration may be refunding money to the importers who paid them, not sending dividend cheques to American families. Trump could find other ways to impose tariffs, even if he loses at the Supreme Court, but it could be cumbersome and time-consuming.

Mainstream economists and budget analysts note that tariffs are paid by US importers who then generally try to pass along the cost to their customers through higher prices.

The dividend plan “misses the mark,” the Tax Foundation’s York said. “If the goal is relief for Americans, just get rid of the tariffs.”

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Trump proposes $2,000 tariff dividend for Americans. Would this work? | Donald Trump News

Over the weekend, United States President Donald Trump promised Americans $2,000 each from the “trillions of dollars” in tariff revenue he said his administration has collected.

During his second term, Trump has imposed tariffs broadly on countries and on specific goods such as drugs, steel and cars.

“People that are against Tariffs are FOOLS!” Trump said in a November 9 Truth Social post. “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place. A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”

How seriously should people take his pledge? Experts urged caution.

Tariffs are projected to generate well below “trillions” a year, making it harder to pay each person $2,000. And the administration already said it would use the tariff revenue to either pay for existing tax cuts or to reduce the federal debt.

Trump’s post came days after the US Supreme Court heard arguments about the legality of his tariff policy. The justices are weighing whether Trump has the power to unilaterally impose tariffs under the International Emergency Economic Powers Act. If the justices rule against Trump, much of the expected future tariff revenue would not materialise.

What Trump proposed, and who would qualify

The administration has published no plans for the tariff dividends, and in a November 9 ABC News interview, Treasury Secretary Scott Bessent said he had not spoken to Trump about giving Americans a dividend payment.

Details about a potential payment have been limited to Truth Social posts.

Trump said “everyone”, excluding “high income people”, would get the money, but did not explain the criteria for high-income people. He also did not say whether children would receive the payment.

In a November 10 Truth Social post, Trump said his administration would first pay $2,000 to “low and middle income USA Citizens” and then use the remaining tariff revenues to “substantially pay down national debt”.

Trump has not said what form the payments might take. Bessent said the dividend “could come in lots of forms, in lots of ways. You know, it could be just the tax decreases that we are seeing on the president’s agenda. You know, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans. So, you know, those are substantial deductions.”

Analysts said it is a stretch to rebrand an already promised tax cut as a new dividend.

Trump has previously discussed paying Americans with tariff revenue.

“We have so much money coming in, we’re thinking about a little rebate, but the big thing we want to do is pay down debt,” he told reporters on July 25. “We’re thinking about a rebate.”

Days later, Senator Josh Hawley introduced legislation that would give $600 tariff rebate cheques to each American adult and child. Hawley’s bill has not advanced.

Tariff revenue collected versus cost of ‘dividend’ payment

Trump made the imposition of tariffs one of his signature campaign promises for the 2024 presidential election. Since taking office in January, he has enacted tariffs on a scale not seen in the US in almost a century; the current overall average tariff rate is 18 percent, the highest since 1934, according to Yale Budget Lab.

Through the end of October, the federal government collected $309.2bn in tariff revenue, compared with $165.4bn through the same point in 2024, an increase of $143.8bn.

The centre-right Tax Foundation projects that tariff revenue will continue to increase to more than $200bn a year if the tariffs remain in place.

Erica York, the Tax Foundation’s vice president of federal tax policy, estimated in a November 9 X post that a $2,000 tariff dividend for each person earning less than $100,000 would equal 150 million adult recipients. That would cost nearly $300bn, York calculated, or more if children qualified. That is more than the tariffs have raised so far, she said.

The Committee for a Responsible Federal Budget projected that Trump’s proposal could cost $600bn, depending on how it is structured.

The administration previously detailed other uses for tariff revenue

The Trump administration already promised to use tariff revenue for other purposes, including reducing the country’s deficit and offsetting the cost of the GOP tax and spending bill Trump signed into law in July.

As Trump announced new tariffs on April 2, he said he would “use trillions and trillions of dollars to reduce our taxes and pay down our national debt”.

Bessent has made the same promise, falsely saying in July that tariffs were “going to pay off our deficit”.

The treasury secretary said in August that he and Trump were “laser-focused on paying down the debt”.

“I think we’re going to bring down the deficit-to-GDP,” Bessent said in an August 19 CNBC interview. “We’ll start paying down debt and then, at a point, that can be used as an offset to the American people.”

Tariffs’ current cost to Americans 

Tariffs are already costing Americans money, analysts say. Independent estimates range from about $1,600 to $2,600 a year per household. Given the similarity of these amounts to Trump’s proposed dividend, York said it would be more efficient to remove the tariffs.

Joseph Rosenberg, Urban Institute-Brookings Institution Tax Policy Centre senior fellow, said a $2,000 dividend in the form of a cheque would require congressional approval – and lawmakers have already declined to act on that idea once.

When members of Congress approved the One Big Beautiful Bill Act, “They had the ability to include a tariff dividend, but they didn’t”, Rosenberg said.

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Trump’s Tariff Powers Face Supreme Court Challenge, Raising Fears of Trade Turmoil

The U.S. Supreme Court’s skeptical questioning of former President Donald Trump’s global tariffs has fueled speculation that his trade measures may be struck down, potentially upending the already fragile trade landscape.

The case centers on Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on imports. The law grants presidents broad authority to regulate trade during national emergencies but makes no mention of tariffs, raising constitutional questions about the limits of executive power.

During oral arguments on Wednesday, justices across the ideological spectrum except Samuel Alito and Clarence Thomas appeared doubtful that Trump had legal authority to levy such blanket global tariffs.

Trade experts now warn that if the court invalidates Trump’s tariff policy, it could trigger a new wave of economic uncertainty, as the administration is expected to pivot quickly to other trade laws to reimpose duties.

Why It Matters

The outcome of this case could reshape U.S. trade policy for years. Businesses have paid over $100 billion in IEEPA-related tariffs since 2025, and a ruling against Trump could open a complex refund battle or force the White House to seek alternative legal pathways for its protectionist agenda.

Corporate leaders, already weary of erratic trade shifts, say a ruling either way offers little stability. “Even if it goes against IEEPA, the uncertainty still continues,” said David Young of the Conference Board, who briefed dozens of CEOs after the hearing.

Trump Administration: Faces potential legal defeat but can pivot to Section 232 (Trade Expansion Act of 1962) or Section 122 (Trade Act of 1974), both of which allow temporary or national security-based tariffs.

U.S. Supreme Court: Balancing presidential powers with statutory limits on trade actions.

Businesses & Importers: Risk being caught in regulatory limbo over refunds and future duties.

Federal Reserve: Monitoring potential economic fallout from prolonged trade instability.

Refunds Could Get “Messy”

Justice Amy Coney Barrett raised concerns about how refund claims would be handled if the tariffs are ruled illegal, calling it “a mess” for courts to manage.
Lawyer Neal Katyal, representing five small businesses challenging the tariffs, said only those firms would automatically receive refunds, while others must file administrative protests a process that could take up to a year.

Customs lawyer Joseph Spraragen added that if the court orders refunds, the Customs and Border Protection’s automated system could process them, but he warned, “The administration is not going to be eager to just roll over and give refunds.”

Economic and Policy Repercussions

Analysts expect the administration to rely on alternative statutes if IEEPA tariffs are overturned. However, implementing new duties under those laws could be slow and bureaucratic, potentially delaying trade certainty until 2026.

Natixis economist Christopher Hodge said such a ruling would be only a “temporary setback” for Trump’s trade agenda, predicting renewed tariff rounds or trade negotiations in the coming year.

Meanwhile, Federal Reserve Governor Stephen Miran warned the uncertainty could act as a drag on economic growth, though it might also prompt looser monetary policy if trade instability dampens business confidence.

What’s Next

A Supreme Court ruling is expected in early 2026, leaving companies in limbo over the future of U.S. tariff policy.
If Trump’s powers under IEEPA are curtailed, analysts expect a new wave of trade maneuvers potentially invoking national security provisions to maintain his “America First” economic approach, prolonging the climate of global trade unpredictability.

With information from Reuters.

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Trump’s worldwide tariffs run into sharp skepticism at the Supreme Court

President Trump’s signature plan to impose import taxes on products coming from countries around the world ran into sharp skepticism at the Supreme Court on Wednesday.

Most of the justices, conservative and liberal, questioned whether the president acting on his own has the power to set large tariffs as a weapon of international trade.

Instead, they voiced the traditional view that the Constitution gives Congress the power to raise taxes, duties and tariffs.

Trump and his lawyers rely on an emergency powers act adopted on a voice vote by Congress in 1977. That measure authorizes sanctions and embargoes, but does not mention “tariffs, duties” or other means of revenue-raising.

Chief Justice John G. Roberts Jr. said he doubted that law could be read so broadly.

The emergency powers law “had never before been used to justify tariffs,” he told D. John Sauer, Trump’s solicitor general. “No one has argued that it does until this particular case.”

Congress has authorized tariffs in other laws, he said, but not this one. Yet, it is “being used for a power to impose tariffs on any product from any country for — in any amount on any product from any country for — in any amount for any length of time.”

Moreover, the Constitution says Congress has the lead role on taxes and tariffs. “The imposition of taxes on Americans … has always been a core power of Congress,” he said.

The tariffs case heard Wednesday is the first major challenge to Trump’s presidential power to be heard by the court. It is also a test of whether the court’s conservative majority is willing to set legal limits on Trump’s executive authority.

Trump has touted these import taxes as crucial to reviving American manufacturing.

But owners of small businesses, farmers and economists are among the critics who say the on-again, off-again import taxes are disrupting business and damaging the economy.

Two lower courts ruled for small-business owners and said Trump had exceeded his authority.

The Supreme Court agreed to hear the appeal on a fast-track basis with the aim of ruling in a few months.

In defense of the president and his “Liberation Day” tariffs, Trump’s lawyers argued these import duties involve the president’s power over foreign affairs. They are “regulatory tariffs,” not taxes that raise revenue, he said.

Justices Sonia Sotomayor and Elena Kagan disagreed.

“It’s a congressional power, not a presidential power, to tax,” Sotomayor said. “You want to say tariffs are not taxes, but that’s exactly what they are.”

Imposing a tariff “is a taxing power which is delegated by the Constitution to Congress,” Kagan said.

Justice Neil M. Gorsuch may hold the deciding vote, and he said he was wary of upholding broad claims of presidential power that rely on old and vague laws.

The court’s conservative majority, including Gorsuch, struck down several far-reaching Biden administration regulations on climate change and student forgiveness because they were not clearly authorized by Congress.

Both Roberts and Gorsuch said the same theory may apply here. Gorsuch said he was skeptical of the claim that the president had the power to impose taxes based on his belief that the nation faces a global emergency.

In the future, “could the President impose a 50% tariff on gas-powered cars and auto parts to deal with the unusual and extraordinary threat from abroad of climate change?” he asked.

Yes, Sauer replied, “It’s very likely that could be done.”

Congress had the lawmaking power, Gorsuch said, and presidents should not feel free to take away the taxing power “from the people’s representatives.”

Justice Amy Coney Barrett said she was struggling to understand what Congress meant in the emergency powers law when it said the president may “regulate” importation.

She agreed that the law did not mention taxes and tariffs that would raise revenue, but some judges then saw it as allowing the authority to impose duties or tariffs.

Justices Brett M. Kavanaugh and Samuel A. Alito Jr. appeared to be leaning against the challenge to the president’s tariffs.

Kavanaugh pointed to a round of tariffs imposed by President Nixon in 1971, and he said Congress later adopted its emergency powers act without clearly rejecting that authority.

A former White House lawyer, Kavanaugh said it would be unusual for the president to have the full power to bar imports from certain countries, but not the lesser power to impose tariffs.

Since Trump returned to the White House in January, the court’s six Republican appointees have voted repeatedly to set aside orders from judges who had temporarily blocked the president’s policies and initiatives.

Although they have not explained most of their temporary emergency rulings, the conservatives have said the president has broad executive authority over federal agencies and on matters of foreign affairs.

But Wednesday, the justices did not sound split along the usual ideological lines.

The court’s ruling is not likely to be the final word on tariffs, however. Several other past laws allow the president to impose temporary tariffs for reasons of national security.

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Supreme Court’s conservatives face a test of their own in judging Trump’s tariffs

The Supreme Court’s conservatives face a test of their own making this week as they decide whether President Trump had the legal authority to impose tariffs on imports from nations across the globe.

At issue are import taxes that are paid by American businesses and consumers.

Small-business owners had sued, including a maker of “learning toys” in Illinois and a New York importer of wines and spirits. They said Trump’s ever-changing tariffs had severely disrupted their businesses, and they won rulings declaring the president had exceeded his authority.

On Wednesday, the justices will hear their first major challenge to Trump’s claims of unilateral executive power. And the outcome is likely to turn on three doctrines that have been championed by the court’s conservatives.

First, they say the Constitution should be interpreted based on its original meaning. Its opening words say: “All legislative powers … shall be vested” in Congress, and the elected representatives “shall have the power to lay and collect taxes, duties, imposes and excises.”

Second, they believe the laws passed by Congress should be interpreted based on their words. They call this “textualism,” which rejects a more liberal and open-ended approach that included the general purpose of the law.

Trump and his lawyers say his sweeping “Liberation Day” tariffs were authorized by the International Economic Emergency Powers Act, or IEEPA.

That 1977 law says the president may declare a national emergency to “deal with any unusual and extraordinary threat” involving national security, foreign policy or the economy of the United States. Faced with such an emergency, he may “investigate, block … or regulate” the “importation or exportation” of any property.

Trump said the nation’s “persistent” balance of payments deficit over five decades was such an “unusual and extraordinary threat.”

In the past, the law has been used to impose sanctions or freeze the assets of Iran, Syria and North Korea or groups of terrorists. It does not use the words “tariffs” or “duties,” and it had not been used for tariffs prior to this year.

The third doctrine arose with Chief Justice John G. Roberts Jr. and is called the “major questions” doctrine.

He and the five other conservatives said they were skeptical of far-reaching and costly regulations issued by the Obama and Biden administrations involving matters such as climate change, student loan forgiveness or mandatory COVID-19 vaccinations for 84 million Americans.

Congress makes the laws, not federal regulators, they said in West Virginia vs. Environmental Protection Agency in 2022.

And unless there is a “clear congressional authorization,” Roberts said the court will not uphold assertions of “extravagant statutory power over the national economy.”

Now all three doctrines are before the justices, since the lower courts relied on them in ruling against Trump.

No one disputes that the president could impose sweeping worldwide tariffs if he had sought and won approval from the Republican-controlled Congress. However, he insisted the power was his alone.

In a social media post, Trump called the case on tariffs “one of the most important in the History of the Country. If a President is not allowed to use Tariffs, we will be at a major disadvantage against all other Countries throughout the World, especially the ‘Majors.’ In a true sense, we would be defenseless! Tariffs have brought us Great Wealth and National Security in the nine months that I have had the Honor to serve as President.”

Solicitor Gen. D. John Sauer, his top courtroom attorney, argues that tariffs involve foreign affairs and national security. And if so, the court should defer to the president.

“IEEPA authorizes the imposition of regulatory tariffs on foreign imports to deal with foreign threats — which crucially differ from domestic taxation,” he wrote last month.

For the same reason, “the major questions doctrine … does not apply here,” he said. It is limited to domestic matters, not foreign affairs, he argued.

Justice Brett M. Kavanaugh has sounded the same note in the past.

Sauer will also seek to persuade the court that the word “regulate” imports includes imposing tariffs.

The challengers are supported by prominent conservatives, including Stanford law professor Michael McConnell.

In 2001, he and John Roberts were nominated for a federal appeals court at the same time by President George W. Bush, and he later served with now-Justice Neil M. Gorsuch on the U.S. 10th Circuit Court of Appeals in Denver.

He is the lead counsel for one group of small-business owners.

“This case is what the American Revolution was all about. A tax wasn’t legitimate unless it was imposed by the people’s representatives,” McConnell said. “The president has no power to impose taxes on American citizens without Congress.”

His brief argues that Trump is claiming a power unlike any in American history.

“Until the 1900s, Congress exercised its tariff power directly, and every delegation since has been explicit and strictly limited,” he wrote in Trump vs. V.O.S. Selections. “Here, the government contends that the President may impose tariffs on the American people whenever he wants, at any rate he wants, for any countries and products he wants, for as long as he wants — simply by declaring longstanding U.S. trade deficits a national ‘emergency’ and an ‘unusual and extraordinary threat,’ declarations the government tells us are unreviewable. The president can even change his mind tomorrow and back again the day after that.”

He said the “major questions” doctrine fully applies here.

Two years ago, he noted the court called Biden’s proposed student loan forgiveness “staggering by any measure” because it could cost more than $430 billion. By comparison, he said, the Tax Foundation estimated that Trump’s tariffs will impose $1.7 trillion in new taxes on Americans by 2035.

The case figures to be a major test of whether the Roberts court will put any legal limits on Trump’s powers as president.

But the outcome will not be the final word on tariffs. Administration officials have said that if they lose, they will seek to impose them under other federal laws that involve national security.

Still pending before the court is an emergency appeal testing the president’s power to send National Guard troops to American cities over the objection of the governor and local officials.

Last week, the court asked for further briefs on the Militia Act of 1908, which says the president may call up the National Guard if he cannot “with the regular forces … execute the laws of the United States.”

The government had assumed the regular forces were the police and federal agents, but a law professor said the regular forces in the original law referred to the military.

The justices asked for a clarification from both sides by Nov. 17.

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