Trump's Tariffs Struck Down by SCOTUS, Trump Says Iran Has Days, More

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Unknown 0:00
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Dan Schwartzman 0:29
News when you want it with Bloomberg News Now. I'm Dan Schwartzman. The Supreme Court has struck down President Trump's sweeping global tariffs. In a six to three ruling, the court said Trump exceeded his authority by invoking a federal emergency powers law to impose his, quote, reciprocal tariffs across the globe, as well as targeted import taxes. The administration says address fentanyl trafficking. Jennifer Hillman, Georgetown law professor and former vice chair of the U.S. Internal Trade Commission and a former member of the World Trade Organization appellate body says this is a win for America.
Jennifer Hillman 0:59
This is a big victory for American consumers, but I would argue from a legal perspective that it's an even bigger victory for the U.S. Constitution. Because what this is basically saying is the court is acknowledging that the Constitution gives to the Congress, not to the president, the power to impose tariffs. And so this ruling is saying that the president cannot use this IEPA statute that doesn't even have the word tariff or duty in it to somehow turn it into a tariff statute.
Dan Schwartzman 1:27
That's Georgetown Law Professor Jennifer Hillman. The Supreme Court ruling against President Trump's use of the International Emergency Economic Powers Act lowers the average U.S. effective tariff rate from 13.6 percent down to 6.5 percent. That's still higher than the 2.3 percent rate when Trump took office last January. The administration has indicated it intends to move quickly to replace many of the tariffs through other authorities. Dorsey and Whitney Trade Attorney Dave Townsend says there's one thing that was surprising about this opinion.
Dave Townsend 1:54
how definitive it was with respect to the statutory interpretation question. The lower courts had been maybe a bit more measured. They had said that the use of the IEPA authority had exceeded what IEPA was intended to permit. And the Supreme Court, it looks to me, went one step further and said that the language of the statute doesn't permit tariffs full stop.
Dan Schwartzman 2:19
That's Dorsey and Whitney Trade Attorney Dave Townsend. David Weston of Bloomberg Wall Street Week, who also clerked for Supreme Court Justice Lewis Powell, asks an important question now that the ruling has come down.
David Weston 2:29
One of the big questions, obviously, is going to be what's the remedy? And where do you go from here? Is there a refund? There have been refunds in the past, but they've been in much smaller situations. I mean, much lower numbers of dollars involved.

What are the implications of the Supreme Court's ruling on Trump's tariffs?

David Weston 2:42
I don't know. The estimates I see was $134 billion as of December. The estimates now, I think, are like a $170 billion that might be refunded here.
Dan Schwartzman 2:52
That's David Weston of Bloomberg Wall Street Week. Markets reacting to the Supreme Court ruling striking down President Trump's tariffs, with the Dow gaining around a tenth of a percent, the S&P up close to a half percent, while the Nasdaq has gained over eight-tenths of one percent. The 10-year Treasury yield is at 4.091, the two years at 3.483, gold trading at $5,070 an ounce, while Bitcoin is at close to $67,300. President Trump speaking to reporters at the opening of a breakfast with governors at the White House says he is considering limited strikes on Iran as a way to ramp up pressure on the regime to make a deal to limit its nuclear program. The U.S. military has been building up a massive armada in the Middle East, including two aircraft carriers, hundreds of fighter jets and refueling tankers, along with thousands of troops.
Dan Schwartzman 3:37
The president has said Iran has 10 to 15 days to strike a deal over its nuclear program. The U.S. economy grew less than expected at the end of last year, dragged down by a record-long government shutdown, consumer spending, and trade.

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