President Trump urged the Supreme Court on Monday to decide a “time-sensitive” case that could blow a big hole in his trade agenda, saying tariff payments are poised to “skyrocket” and he doesn’t want to see his plans ruined.
Mr. Trump, writing on Truth Social, said tariffs are reaping billions of dollars, but the full effect hasn’t been seen yet, because companies front-loaded inventory to avoid paying the levies in the near term.
“That heavy inventory purchase is now, however, wearing thin, and soon Tariffs will be paid on everything they apply to, without avoidance, and the amounts payable to the USA will SKYROCKET, over and above the already historic levels of dollars received,” Mr. Trump wrote. “These payments will be RECORD SETTING, and put our Nation on a new and unprecedented course.”
The U.S. has collected nearly $320 billion in customs and excise taxes so far this year, compared to around $170 billion at this point last year, according to the Penn Wharton Budget Model.
Nearly a third of imports are subject to tariffs that Mr. Trump imposed under a 1977 law that granted the president certain powers over international negotiations during economic emergencies.
But small businesses and blue states sued Mr. Trump, saying he swiped Congress’s taxing power when he used the law to impose blanket tariffs on other nations.
The businesses argue that the tariffs are a significant cost burden because they must cover the costs of the levies when importing foreign goods into the U.S.
Mr. Trump says opponents of his tariffs are bowing to foreign interests. He views tariffs as a means to create revenue, gain leverage over other nations and boost U.S.-based industries.
“Those opposing us are serving hostile foreign interests that are not aligned with the success, safety and prosperity of the USA,” he wrote Monday. “They couldn’t care less about us. I look so much forward to the United States Supreme Court’s decision on this urgent and time sensitive matter so that we can continue, in an uninterrupted manner to, MAKE AMERICA GREAT AGAIN!”
Key justices seemed skeptical of Mr. Trump’s position during oral arguments in early November. They focused on the revenue-raising nature of tariffs and how Congress typically sets taxes — not the executive branch.
The administration estimated it would have to refund $750 billion to $1 trillion in tariff revenue if the court rules against it and the opinion doesn’t arrive until June.
A decision against the administration would force Mr. Trump to seek other legal authorities to impose tariffs on other nations. Sector-based tariffs on products such as steel, aluminum, cars and upholstered furniture are not impacted by the case.
