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What Next | Trump’s Tariffs Have a Constitution Problem

Nov 6, 2025
In this engaging discussion, economist Justin Wolfers from the University of Michigan dives into the constitutional chaos of Trump's tariff policy. He shares insights on why tariffs challenge the Constitution and the government's strained credibility claiming them as regulatory tools. Wolfers examines the Supreme Court's skepticism, the vague emergencies cited justifying tariffs, and how this strategy reflects Trump's governing style. He warns businesses about adapting to these unpredictable policies, highlighting how tariffs have become tools of power rather than sound economic measures.
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INSIGHT

Court Questions Presidential Tariff Power

  • The Supreme Court hearing focused on whether the president can unilaterally impose broad tariffs under the International Emergency Powers Act.
  • Justices were skeptical because the administration framed tariffs as regulatory rather than revenue-raising, raising constitutional doubts.
INSIGHT

Lack Of A Clear Emergency Weakens Case

  • Justin Wolfers said there was no clear emergency underpinning the tariffs, undermining the IEPA justification.
  • Without a concrete emergency like national security or fentanyl, the court found the argument thin and implausible.
ANECDOTE

Small Business Owner Facing $14M Hit

  • A CEO of an ed-tech company said tariffs would cost his business about $14 million this year.
  • He used the Revolutionary War tax analogy to argue against presidentially imposed tariffs without Congress.
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