Donald Trump on tariffs hearing in US Supreme Court

US President Donald Trump said on Thursday that his government will have to return trillions of dollars if the American Supreme Court removes trade tariffs. The US has received $950 billion from Europe, $650 billion from Japan, and $350 billion from South Korea, said the president. His remarks came after a second straight day of hearing in the court where his government faced tough questions on the validity of trade tariffs that have rattled major economies and world markets this year.

On Thursday, the court heard emergency arguments amid concerns raised by businesses and 12 American states arguing that the 47th American president overstepped his authority by using an emergency powers law to impose the duties that have shaken the global markets.

The Trump 2.0 administration’s counsel faced a number of serious questions in the court, like:

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• Shouldn’t tariffs be considered a form of tax?
• Can a president declare every trade deficit a ‘national emergency’ and impose tariffs at will?
• Are we in a permanent emergency with half the world?

Trump had used a 1977 emergency law, called the International Emergency Economic Powers Act (IEEPA), to impose tariffs ranging from 10 per cent to 50 per cent on most of America’s trade partners across the globe, including India, China, Canada, and Mexico.

Petitioners have argued that the American president should not have such sweeping authority to impose taxes/tariffs as that power belongs to Congress.

Undeterred by the developments, Trump said his government performed “tremendously” in court.

The judges asked questions, he said, but his case is rock-solid.

He also said that even if his administration loses IEEPA, he will impose new tariffs the next morning under Section 232, where no refunds will be needed.

Section 232 of the US Trade Expansion Act of 1962 allows an American president to impose trade restrictions — such as tariffs — on imports that are deemed to threaten national security.

In this process, the US Department of Commerce conducts an investigation and then makes recommendations to the president.

If the president acts on these recommendations, they can impose tariffs, quotas, or other measures to restrict imports.

US Treasury Secretary Scott Besent said: “I came away very, very optimistic.”

“These tariffs are the lifeblood of America. Even if the court rules against us, 90 per cent of our policy will remain intact,” he added.