“We don’t contend that what’s being exercised here is the power to tax,” Sauer said.
The Supreme Court on Wednesday questioned the Trump administration’s reliance on the International Emergency Economic Powers Act (IEEPA) to impose tariffs, with justices expressing skepticism over its arguments. Solicitor General D. John Sauer contended that the tariffs were regulatory, not revenue-raising, saying, “It’s the power to regulate foreign commerce. These are regulatory tariffs. They are not revenue raising tariffs.”
Justice Sonia Sotomayor disagreed, stating, “You say tariffs are not taxes, but that’s exactly what they are.” Conservative Justice Neil Gorsuch warned that granting such authority would shift power permanently to the executive branch, calling it “a one-way ratchet toward the gradual but continual accretion of power.”
Justice Amy Coney Barrett also questioned the breadth of the tariffs on U.S. allies. Attorney Neal Katyal, representing small businesses, argued that “it’s simply implausible” Congress intended the president to wield such sweeping powers. A ruling is expected before year’s end.