Tariffs: Who Really Pays the Price?
The Supreme Court is closely examining President Trump's tariffs. Experts argue this isn't just about trade—it's about who holds the power to decide how money is collected.
Tariffs as Taxes
Marc Busch, a professor at Georgetown University, discussed this on a podcast. He stated that tariffs are essentially taxes and harm American businesses more than any other group.
Trump has not clearly explained why these tariffs benefit Americans or shared his strategy. Last week, it became evident that the tariffs are not just about punishing other countries—they're about controlling money.
Busch was pleased to hear Justice Sotomayor acknowledge that tariffs are taxes, calling it a major development. It shows the Supreme Court is taking this seriously.
Impact on American Manufacturers
The tariffs hurt American manufacturers the most. About half of U.S. imports are used to produce other goods, which are then exported. Thus, the tariffs harm the very businesses the government aims to support.
Legal and Strategic Concerns
Trump claims he has the power to impose tariffs under a 1977 law granting the president authority in emergencies. However, the Supreme Court is questioning this power.
Busch also addressed an argument by the Solicitor General, who claimed the tariffs are not meant to raise revenue but to bring businesses back to the U.S. Busch, however, finds this unrealistic.