Marketplace Morning Report Are Trump's "reciprocal" tariffs legal or not?
Nov 3, 2025
Julia Coronado, an esteemed economist and founder of Macro Policy Perspectives, dives into the heated debate over Trump’s reciprocal tariffs and their legality before the Supreme Court. She explores alternative legal routes the administration could take if its emergency authority is challenged. The conversation also reveals how these tariffs have evolved into a significant revenue source, highlighting their dual role in trade and taxation. Additionally, insights are shared on BP’s strategic divestments and troubling issues within the for-profit rehab industry.
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Emergency Tariffs Aren't The Only Route
- The Trump administration uses emergency authority to impose so-called reciprocal tariffs as its preferred legal path.
- If the Supreme Court strikes that down, other statutory routes and Congress remain available to apply import taxes.
Congress Has Largely Abdicated Tariff Power
- Economist Julia Coronado notes Congress has been 'missing in action' on tariff authorization.
- The administration views tariffs both as trade policy and a growing revenue source tempting to use for spending priorities.
Tariffs Are A Growing Source Of Revenue
- Tariffs function primarily as an import tax and have generated steadily rising revenue under the administration.
- That revenue growth makes tariffs an attractive tool to fund government priorities even while cutting other taxes.
