Key Points
- The Supreme Court is set to rule on the legality of President Trump’s global tariffs. The decision could come as early as Wednesday, January 14.
- Trump warned on social media that if the court rules against him, “WE’RE SCREWED!”
- The case centers on his use of a 1977 law intended for national emergencies.
- Companies like Costco are suing for refunds in case the tariffs are deemed unlawful.
U.S. President Trump is growing increasingly anxious as he waits for the Supreme Court to rule on the legality of his most sweeping tariffs. On Monday, he took to social media to warn that if the court rules against him, “WE’RE SCREWED!” The high court could issue its decision as early as Wednesday, January 14, in a case that will have massive implications for the future of U.S. trade policy.
The case centers on whether the President had the authority to impose a wide range of tariffs worldwide by invoking a 1977 law intended for national emergencies. When the court heard arguments in November, justices from both sides of the aisle seemed skeptical of the administration’s broad interpretation of its powers.
The business world is watching the case very closely. Companies like Costco have already filed lawsuits against the government, hoping to get a massive refund on the import duties they’ve paid if the court strikes down the tariffs.
Treasury Secretary Scott Bessent said that if the court does rule against the administration, which he still thinks is unlikely, the Treasury has enough money to cover the refunds.
However, he also took a shot at the companies suing the government, suggesting they won’t pass the savings on to their customers. “Costco, who’s suing the US government, are they going to give the money back to their clients?” he asked. He called the potential refunds a “corporate boondoggle.”
For now, everyone is in a holding pattern. The Supreme Court’s decision will be a landmark test of presidential power and could either validate Trump’s aggressive trade strategy or deal it a significant blow.
