U.S. President Donald Trump opted out of attending the Supreme Court oral arguments regarding his tariff policies, stating, “It’s not about me.” Treasury Secretary Scott Bessent was expected to be the most notable observer, but unexpectedly, comedian John Mulaney also made an appearance. Mulaney had previously engaged in a discussion on lawyer Neal Katyal’s podcast about the similarities between Supreme Court arguments and stand-up comedy.
Katyal, representing small businesses suing the Trump administration, asserted at the outset of his statement that tariffs function as taxes, transferring money from Americans to the U.S. Treasury. He emphasized that according to the U.S. Constitution, only Congress holds the authority to levy taxes. In rebuttal, Trump’s Solicitor General John Sauer contended that the tariffs on imports from approximately 100 countries were not categorically taxes.
During the session, Chief Justice John Roberts queried Sauer on who ultimately bears the tariffs’ cost, challenging the administration’s stance. Justice Neil Gorsuch also expressed reservations about Sauer’s arguments. The Trump administration’s use of the 1977 International Economic Emergency Powers Act (IEEPA) to impose tariffs, a first in presidential history, was scrutinized by the court.
The Supreme Court’s conservative judges appeared skeptical of the administration’s case, with observations indicating a possible unfavorable ruling for Trump. The decision, expected in the coming weeks or months, could potentially result in the Treasury refunding the $90 billion collected through the contested tariffs. However, the ruling may not impact the tariffs affecting the Canadian economy, particularly those imposed as a response to fentanyl trafficking.
Trump’s imposition of tariffs on Canadian goods, including those increased to 35% in response to specific trade issues, may face legal scrutiny. The tariffs, targeting non-compliant goods under the Canada-U.S.-Mexico Agreement, form a relatively minor portion of Canadian exports, with figures indicating a significant collection of tariffs on imports from Canada this year.
