Trump Tariff Challengers Back Fast-Track Supreme Court Review

Small businesses challenging President Donald Trump’s sweeping tariffs told the US Supreme Court they backed his proposal for a fast-track review of the levies in a clash with global economic implications.

Trump turned to the high court Wednesday, only five days after a federal appeals court ruled that he was exceeding his authority under a 1977 law designed to address national emergencies. Trump asked the court to put the case on a highly expedited schedule with arguments in the first week of November.

In a court filing Friday, the companies said they support expedited review because they are “suffering severe economic hardships as a result of the price increases and supply chain interruptions caused by the tariffs.”

The proposed schedule would make it possible for the court to rule by the end of the year, though the court’s term extends until the middle of next year. The administration asked the Supreme Court to say by Sept. 10 whether it will take up the case.

The financial stakes are massive. A defeat for Trump would cut the current average US effective tariff rate of 16.3% by at least half and could force the US to refund tens of billions of dollars, according to Bloomberg Economics analyst Chris Kennedy. It could also upend the preliminary trade deals Trump has struck with some countries.

The levies remain in effect because the appeals court put its ruling on hold to give Trump time to seek Supreme Court intervention.

The decision nonetheless “has jeopardized ongoing foreign negotiations and threatens framework deals,” US Solicitor General D. John Sauer told the court.

The challenged taxes include Trump’s April 2 “Liberation Day” tariffs, which impose levies of 10% to 50% on most US imports depending on the country the goods come from. The April 2 tariffs represented the biggest increase in US import taxes since the 1930 Smoot-Hawley levies, with the country’s average applied tariff rate at its highest level in more than a century.

Explainer: Here Are Trump’s Options If Ruling Against Tariffs Is Upheld

The appeal also covers tariffs Trump imposed on Canada, Mexico and China in the name of addressing fentanyl trafficking. The case stems from separate lawsuits filed by Democratic-led states and a group of small businesses.

The appeal will test a conservative-controlled court that so far has largely accommodated Trump as he asserts powers never claimed by his predecessors. Assuming they take up the case, the justices will be grappling with a law that gives the president a panoply of tools to address national security, foreign policy and economic emergencies but doesn’t explicitly mention tariffs.

The 7-4 ruling from the Court of Appeals for the Federal Circuit last week upheld a decision by the US Court of International Trade. Both courts said the 1977 International Emergency Economic Powers Act doesn’t authorize such sweeping import taxes through a provision that says the president can “regulate” the “importation” of property to address an emergency.

The case is Trump v. V.O.S. Selections, 25-250.

To contact the reporter on this story:
Greg Stohr in Washington at gstohr@bloomberg.net

To contact the editors responsible for this story:
Elizabeth Wasserman at ewasserman2@bloomberg.net

Anthony Aarons

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