Is This the End of the Trade War?

"The president argued that it "would literally destroy the United States of America" if the Court rules against him. Alas, I guess, the justices-three Trump appointees among them-seem likely to do so, as three lower courts have so far this year, and as a formidable group of conservative legal experts insist they must. The financial fallout would be messy. Such a ruling would cut in half the country's effective tariff rate-"

"The White House might have to figure out how to return tens of billions of dollars to companies that have paid import fees this year, plus interest. Despite the probable chaos, however, a ruling against the tariffs would be good for Americans' pocketbooks, and good for ensuring that the current slowdown does not transform into a recession. The American economy is growing at a decent-enough pace at the moment, and the jobless rate is rising but low."

"The real problem is the cost of living, as households have told pollsters and politicians over and over and over again. Trump's tariffs are certainly not the cause of sky-high rents, obscene utility bills, child-care shortages, and ridiculous out-of-pocket health costs. But they have pumped up the price of consumer goods. The average family will pay $1,800 more for groceries, clothing, and other necessities thanks to the Trump administration's trade policies in 202"

The Supreme Court is considering challenges to the Trump administration's use of the International Emergency Economic Powers Act to impose broad tariffs. State governments and businesses argue that trade deficits are not an emergency and the statute does not authorize unilateral tariff actions. Lower courts have struck down the tariffs and conservative legal experts back that view, increasing the likelihood of an adverse ruling. A ruling against the tariffs would halve the country's effective tariff rate, cut Treasury collections roughly in half, and force return of tens of billions in import fees. The change would lower consumer goods prices and help prevent a slowdown turning into recession.

Read at The Atlantic