Plaintiffs in one of the legal cases challenging President Donald Trump's authority to impose tariffs are asking the Supreme Court to hear their arguments even before US federal appeals courts rule on their petition.
The legal case brought by the plaintiffs — toy companies Learning Resources and hand2hand — resulted in a ruling by the US District Court for the District of Columbia in late May that Trump did not have the authority to impose tariffs by citing a 1978 law called the International Emergency Economic Powers Act (IEEPA). That case is currently on appeal at the US Court of Appeals for the DC Circuit.
The plaintiffs today urged the Supreme Court to take the case and schedule oral arguments at the start of its fall term in October, or possibly in a special September sitting. The plaintiffs argued the Supreme Court will eventually have to rule on the case given the unprecedented use of IEEPA by the Trump White House to impose tariffs, so special consideration should be given to the case even before appeals courts rule on it.
The Supreme Court is under no obligation to fast-track the case.
The schedule for legal challenges to Trump's authority is clashing with his claims to be negotiating multiple deals with foreign trade partners.
Trump cited the IEEPA to impose, then rescind, tariffs of 10-25pc on energy and other imports from Canada and Mexico in February-March. He used the same law to impose 20pc tariffs on China in February-March, and to impose 10pc tariffs on nearly every US trading partner in April.
The US Court of Appeals for the DC Circuit has stayed the toy companies' case until the resolution of a separate, broader legal challenge to Trump's tariff authority. In that case, the US Court of International Trade ruled in late May that Trump's use of IEEPA was illegal and ordered the administration to remove all tariffs it imposed under that rubric and to refund all import duties it collected.
The trade court's ruling is under review at the US Court of Appeals for the Federal Circuit, which scheduled an oral argument on 31 July to hear from plaintiffs — a group of US companies and several US states — and from the Trump administration.
The trade court's ruling in late May was unexpected, as it "actually ruled on the merits of the case, as opposed to just granting or denying an injunction," according to Alec Phillips, chief political economist with investment bank Goldman Sachs' research arm. "The question now is, will the Federal Circuit uphold the ruling, and will ultimately the Supreme Court uphold the ruling?"
The Trump administration argued that the legal challenges to its tariff authority could undermine its ability to negotiate with foreign trade partners.
The administration has so far produced two limited trade agreements, with the UK and China, despite promising in early April to unveil "90 deals in 90 days".
Trump on Monday described ongoing trade negotiations as an easy process. "We're dealing with really, if you think about it, probably 175 countries, and most of them can just be sent a letter saying, 'It'll be an honor to trade with you, and here's what you're going to have to pay to do'", Trump said.
But on the same day he pushed back on calls from Canada and the EU to negotiate trade deals, arguing that their approach is too complex. "You get too complex on the deals and they never get done," Trump said.
The legal challenges to Trump's authority under IEEPA will not affect the tariffs he imposed on foreign steel, aluminum, cars and auto parts.
US trade statistics point to a significant tariff burden in place in April, the latest month for which data are available.The effective US tariff rate on all imports — the amount of duties collected divided by the total value of imports — rose to 7.1pc in April from 2.4pc in January.
Trump has dismissed concerns about the impact of tariffs on consumer prices, noting on Monday that "we're making a lot of money. You know, we took in $88bn in tariffs."
Treasury Department revenue data show that the US has collected $98bn in customs revenue for the year through 13 June, up from $63bn in the same period last year.
