Slate Business What Next | Trump’s Tariffs Have a Constitution Problem
Nov 6, 2025
Justin Wolfers, an economist and University of Michigan professor, dives into the implications of Trump's tariff actions being scrutinized by the Supreme Court. Discussion includes the legality of imposing tariffs without Congressional approval and the chaotic nature of tariff policy. They explore the real-world impact on businesses facing increased costs and the consequences of bypassing Congress. Wolfers argues that Trump's use of tariffs mirrors his broader political tactics, raising questions about how this uncertainty affects business planning.
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Court Doubts Broad Presidential Tariff Power
- The Supreme Court questioned whether the president can broadly impose tariffs without Congress under the International Emergency Powers Act.
- Justices treated Trump's claim that tariffs are regulatory (not taxes) with strong skepticism during oral arguments.
Regulatory Tariff Argument Collapses Under Scrutiny
- The government argued these are regulatory tariffs that incidentally raise revenue, which puzzled the justices.
- Justin Wolfers noted the administration simultaneously boasts about tariff revenue, undermining that regulatory claim.
Small Importer’s $14M Hit Illustrates Harm
- A small edtech importer told Dahlia Lithwick he expects $14 million in costs this year from the tariffs.
- That concrete harm was used to argue the administration's ‘‘incidental revenue’’ claim rang hollow.