Supreme Court hears challenge to President Trump's fentanyl & 'liberation day' tariffs

Tariffs & Legal Challenges - The Supreme Court is hearing arguments on the legality of President Trump's tariffs, a decision with significant implications [1][2][3] - The Trump administration is asking the Supreme Court to reverse a lower court ruling that deemed most of the tariffs an illegal use of the International Emergency Economic Powers Act (IEEPA) [3] - An estimated $90 billion in tariff revenue is at stake, which the Treasury might have to refund if the administration loses the case [4][16] - Businesses argue that the power to regulate imports is not the same as the power to tax, challenging the legality of the tariffs [5] - The companies suing the administration are primarily small firms, including toy manufacturers, a wine importer, and an apparel company [6] Potential Economic Impact & Alternative Measures - If the Supreme Court strikes down the tariffs, it could significantly limit the president's maneuvering room on tariffs [12] - The Treasury has contingency plans and could potentially reimpose tariffs using alternative measures like Section 301 or Section 232, although these are more cumbersome [10][13] - The introduction of alternative measures could reintroduce tariff volatility and policy uncertainties [14] - If the administration loses the case, the Treasury would have to return approximately $90 billion in revenue collected under IEEPA tariffs, potentially impacting the deficit [4][16] Timeline & Market Reaction - A decision from the Supreme Court is expected by the end of the year, but could come at any time [9] - Uncertainty surrounding the Supreme Court's decision and potential alternative tariff measures contributed to market selloffs [14]