Axios: Supreme Court Says Trump Global Tariffs Are Illegal

UPDATE:

Trump woke up angry.

As I expected, Donald Trump took a big L on tariffs at the Supreme Court. Trump has used unilaterally wielded tariffs as clubs to punish and reward foreign countries. This isn’t how tariffs have historically been used and the chaos that Trump has created based on whims and mood swings has made tariffs unpopular. He has succeeded though in rolling back presidential power to use tariffs.

Axios:

“The Supreme Court struck down a suite of President Trump’s tariffs on Friday, a historic blow to the administration’s economic agenda.

The big picture: In a rare rebuke of Trump’s power, the nation’s highest court said many of the administration’s tariffs were illegal. The 6-3 ruling sets a new boundary for what policies presidents can impose without congressional approval.

What they’re saying: “[T]he Government reads IEEPA to give the President power to unilaterally impose unbounded tariffs and change them at will. That view would represent a transformative expansion of the President’s authority over tariff policy,” the ruling says, referring to the International Emergency Economic Powers Act. …”

The White House is disputing the Wired story which went viral yesterday that Howard Lutnick’s sons at Cantor Fitzgerald are set to make a fortune by betting against tariffs.

The New Republic:

“The Supreme Court decision striking down Donald Trump’s many tariffs may prove to be a windfall for the family of Commerce Secretary Howard Lutnick, a key architect of Trump’s signature economic policy.

In July, Wired reported that Cantor Fitzgerald, which Lutnick chaired until he was appointed to Trump’s Cabinet, was allowing its traders to purchase the rights to hundreds of millions of dollars of refunds in the event the tariffs were struck down in court. The firm now happens to be headed by Lutnick’s sons Kyle and Brandon. …”

Trump responded to the Supreme Court ruling by unveiling zombie tariffs which have a different legal basis. The whole matter will continue to be litigated in court for the rest of Trump’s term.

New York Times:

“President Trump moved swiftly on Friday to resurrect his punishing tariffs and circumvent a stunning loss at the Supreme Court, ordering a new 10 percent tax on all imports along with other trade actions in a bid to preserve his primary source of economic leverage around the world.

Striking a defiant tone in the face of a legal defeat, Mr. Trump asserted at a news conference that he remained unbowed in a global trade war that has come to define his second term in office. The president even signaled that the tariffs he is now pursuing may yet prove more painful and lasting than those they are meant to replace. …”

Wired reported that Cantor Fitzgerald, which Lutnick chaired until he was appointed to Trump’s Cabinet, was allowing its traders to purchase the rights to hundreds of millions of dollars of refunds in the event the tariffs were struck down in court. The firm now happens to be headed by Lutnick’s sons Kyle and Brandon. …”

Behind closed doors, the GOP which never supported tariffs in the first place is privately celebrating the Supreme Court decision. Trump is setting back the cause of economic nationalism.

Axios:

“The small bloc of Republicans who have publicly broken with President Trump on trade policy aren’t the only ones thrilled about the Supreme Court overturning his global tariffs, Axios has learned.

Why it matters: Cracks in GOP support for protecting Trump’s trade barriers had already grown significant by the time of the ruling, and Republicans tell Axios a “messy” full-scale revolt on the issue was just around the corner. …”

When Trump leaves office in 2029, Republicans like Ted Cruz will campaign and try to win the nomination on returning to the old globalist free trade status quo ante.

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