Supreme Court Justices Express Doubts Over Legality of Trump's Tariffs

During a Supreme Court hearing on Wednesday, justices expressed skepticism regarding the legality of former President Donald Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Both conservative and liberal members of the Court questioned the broad authority claimed by the administration to levy these tariffs, which critics argue encroach upon Congress's power to tax.

In response to the justices' inquiries, Solicitor General D. John Sauer defended the administration's position, asserting that the tariffs were necessary for national security and to address trade imbalances. However, the Court's apparent doubts have influenced prediction markets. On Kalshi, contracts predicting the Court would uphold Trump's tariffs declined from nearly 50% before the hearing to around 30% afterward.

Lower federal courts have previously ruled that Trump lacked the legal authority to impose these tariffs unilaterally. The Supreme Court has yet to announce when it will issue its ruling on the matter.