Today is a very important day for US President Donald Trump. The US Supreme Court will hear a case related to President Donald Trump today. This case concerns Trump’s tariffs. Today, during the case, there will be a debate on whether the powers granted under the International Emergency Economic Powers Act (IEEPA) were misused or not. US President’s fate is at stake because if the Trump administration loses this case in court, the US government will have to return billions of dollars in fees collected under the name of tariffs to each country, one by one.
The Stakes of the Ruling
Essentially, after becoming President again, Donald Trump used tariffs as a weapon. He imposed heavy tariffs on countries with which the US had a large trade deficit or which, according to him, were not changing their policies. The Trump administration has finalized trade deals with many countries by threatening to impose significantly higher reciprocal tariffs. Negotiations on a trade deal with India are at an advanced stage.
The hearing in the US Supreme Court begins today. Donald Trump appears quite confident about this crucial test. Just one day before the hearing, he declared this case the most important case in the nation’s history. According to media reports, if the decision goes against Trump, he would have to return nearly $100 billion to importers. US President had commented on this matter, saying that the decision is so significant that if he wins, America will become the world’s richest and safest country. But if he loses, the country could end up in a situation akin to third-world nations.
The Legal Challenge and Trump’s Tariff Strategy
In this case, the renowned Indian-origin lawyer, Neal Katyal, will argue against Trump. As the lead counsel, he will argue that the power to impose taxes and tariffs should lie with Congress, not the President. According to an estimate by PwC, by the end of October, the US had collected a total of $108 billion in tariffs, with China’s share being the highest at $34 billion. Furthermore, according to PwC’s estimate, in India’s case, this figure is $48.7 million.
In this case, the renowned Indian-origin lawyer, Neal Katyal, will argue against Trump. As the lead counsel, he will argue that the power to impose taxes and tariffs should lie with Congress, not the President. According to an estimate by PwC, by the end of October, the US had collected a total of $108 billion in tariffs, with China’s share being the highest at $34 billion. Furthermore, according to PwC’s estimate, in India’s case, this figure is $48.7 million.
The Supreme Court Showdown
Three lower courts have already ruled against the US President administration. The first hearing of this case took place in the US District Court for the Northern District of Illinois. The court had rejected the government’s argument in April. In June, the US Court of International Trade (CIT) also ruled that the IEEPA does not grant the President the authority to impose general tariffs. In August, the US Court of Appeals for the Federal Circuit ruled that Congress never delegated such broad powers to the executive branch.
It is important to note that the court typically allocates 60 minutes for hearing regular cases, but the hearing for this case involving US President will last for 80 minutes. Additionally, it should be noted that since taking office, US President Trump has started using tariffs as a form of diplomacy to get his way with many countries worldwide. He had imposed tariff penalties on India for buying oil from Russia. Trump’s tariff policy has been called a bullying policy in many quarters.
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