The Indicator from Planet Money The legal case for — and against — Trump's tariffs
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Aug 7, 2025 
Scott Horsley, NPR's economics correspondent, dives into the legalities surrounding President Trump's tariffs. He unpacks the contentious debate about the president's authority to impose these tariffs, raising questions about their legality. The discussion explores the economic impact on businesses, particularly for U.S. importers who may pass costs onto families. A recent trade court ruling challenging the tariffs adds another layer of complexity to the situation, emphasizing national security and economic arguments in this ongoing legal battle.
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Tariffs Act as Hidden Taxes
- Tariffs initially hit U.S. importers, who may pass costs onto American consumers.
- Tariffs act like hidden taxes ultimately borne by families and businesses alike.
Wine Importer’s Tariff Nightmare
- Victor Schwartz, a New York wine importer, faced steep tariffs that raised costs significantly.
- He imports from 16 countries, making tariff tracking very complex and burdensome.
Legal Basis for Tariffs Questioned
- Trump's tariffs rely on a 1970s law allowing emergency president powers, though that law doesn't mention tariffs.
- A federal trade court ruled these emergency tariffs illegal, but collection continues during appeals.