WASHINGTON (AP) — The Trump administration took the fight over tariffs to the Supreme Court on Wednesday, asking the justices to rule quickly that the president has the power to impose sweeping trade penalties under federal law.
The government called on the court to reverse an appeals court ruling that most of President Donald Trump’s tariffs were illegal under an emergency powers law.
The U.S. Court of Appeals for the Federal Circuit left the tariffs in place for now, but the administration nevertheless called on the high court to intervene quickly in a petition filed late Wednesday and provided to The Associated Press. It was expected to be formally docketed on Thursday.
The 7-4 ruling by the appeals court came after states and small businesses sued, saying the tariffs were causing serious economic hardship. The court largely upheld a lower court ruling striking down the tariffs.
“That decision casts a pall of uncertainty upon ongoing foreign negotiations that the President has been pursuing through tariffs over the past five months, jeopardizing both already negotiated framework deals and ongoing negotiations,” the Trump administration argued in its appeal. “The stakes in this case could not be higher.”
An attorney for the small businesses rocked by the tariffs, Jeffrey Schwab with the Liberty Justice Center, said the stakes are also high for his clients.
“These unlawful tariffs are inflicting serious harm on small businesses and jeopardizing their survival. We hope for a prompt resolution of this case for our clients,” he said.
The tariffs and their erratic rollout have shaken global markets, alienated U.S. trading partners and allies and raised fears of higher prices and slower economic growth.
But Trump has also used the levies to pressure the European Union, Japan and other countries into accepting new trade deals. Revenue from tariffs totaled $159 billion by late August, more than double what it was at the same point the year before.
Most judges on the U.S. Court of Appeals for the Federal Circuit found the 1977 International Emergency Economic Powers Act, or IEEPA, did not let Trump usurp congressional power to set tariffs. The dissenters said it did allow the president to regulate importation without explicit limitations during emergencies.
The ruling involves two sets of import taxes, both of which Trump justified by declaring a national emergency: the tariffs first announced in April and the ones from February on imports from Canada, China and Mexico.
The Constitution gives Congress the power to impose taxes, including tariffs. But over the decades, lawmakers have ceded authority to the president, and Trump has made the most of the power vacuum.
Some Trump tariffs, including levies on foreign steel, aluminum and autos, weren’t covered by the appeals court ruling. It also does not include tariffs Trump imposed on China in his first term that were kept by Democratic President Joe Biden.
Trump can impose tariffs under other laws, but those have more limitations on the speed and severity with which he could act.
The government has argued that if the tariffs are struck down, it might have to refund some of the import taxes that it’s collected, delivering a financial blow to the U.S. Treasury.
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