The Supreme Court is hearing a landmark case on President Trump's tariff powers, and it's entirely possible that justices appointed by Trump could prove to be a major problem.
The Supreme Court heard oral arguments on Trump's use of an emergency law to enact his sweeping "Liberation Day" tariffs, which have been the source of major controversy and several serious lawsuits.
So far, justices Neil Gorsuch and Amy Coney Barrett seem to be the most skeptical about Trump's use of the International Emergency Economic Powers Act, which is bad news for Trump.
The Supreme Court has a 6-4 conservative majority, which Trump is banking on to score easy victories. However, with two conservative justices seemingly wavering, this could lead to a decision that isn't in Trump's favor.
Should the Supreme Court declare that the Trump administration's tariff policy is illegitimate, it will completely knock down a cornerstone of Trump's economic policy.
The International Emergency Economic Powers Act gives the president broad economic powers in the event of a national emergency tied to foreign threats. Trump has cited the trade deficit as such an emergency to impose tariffs via executive order earlier this year.
However, lawsuits filed by Democrats against Trump's declaration have claimed that since the words "tariffs" or "taxes" do not appear in the text of the IEEPA, Trump's actions are unlawful.
The Supreme Court is considering the power to "regulate importation" during a national emergency, which would certainly seem to include tariffs, which are essentially a fee on any imported goods.
Justice Amy Coney Barrett pressed U.S. Solicitor General D. John Sauer by asking, "Can you point to any other place in the code or any other time in history where that phrase — together with ‘regulate importation’ — has been used to confer tariff-imposing authority?"
Justice Neil Gorsuch also inquired, "What would prohibit Congress from abdicating all responsibility to regulate foreign commerce or declare war to the president?"
Of course, the Trump administration has been adamant that while tariffs may seem like taxes, they are legally separate concepts that should settle any concerns about the separation of powers.
The Supreme Court's leftist justices have already made it clear that they do not support Trump's interpretation of the IEEPA, which means that this will be a 6-4 decision, in the best-case scenario.
This means that the Trump administration must secure both Barrett's and Gorsuch's votes to avoid a devastating defeat that will undermine Trump's economic agenda.
Court observers have suggested that a Trump victory is still very much in play, but there is growing concern that Gorsuch or Barrett, both appointed by Trump in his 1st term, could flip and join the left. That would be an unparalleled disaster for Trump, who is in bad need of a win.
