Oregon argues against Trump tariffs in case before US Supreme Court

President Donald Trump violated the Constitution and defied Congress when he slapped import taxes on goods from practically every other country, Oregon Solicitor General Ben Gutman argued before the Supreme Court of the United States on Wednesday.

The nine justices at the nation’s highest court heard arguments on behalf of states and businesses opposing Trump administration tariffs that have upended longstanding international trade agreements.

Arguing for the president, U.S. Solicitor General John Sauer said the International Emergency Economic Powers Act (IEEPA) gives the president authority to levy tariffs as a foreign policy tool.

The case raises a number of issues outside of trade and the country’s economy. It also tests how much the Supreme Court is willing to defer to the president’s authority, and under what circumstances the justices will limit presidential power.

The court is expected to issue a ruling no later than the end of its term in June. But given that the court has expedited the case, it could happen sooner.

Why is Oregon involved?

In April, the Oregon Department of Justice led a coalition of a dozen states that sued over the president’s signature trade strategy. The states argued only Congress, not the president, has the power to impose and collect taxes under the U.S. Constitution.

Economists have warned Oregon businesses and farmers could get hit especially hard since the state is highly trade-dependent. Last year, companies in Oregon exported more than $34 billion and imported $28 billion in parts and finished products.

Since widespread tariffs hit earlier this year, Oregon businesses from a range of industries say the import duties are raising the cost of doing business. Some companies are passing higher costs on to customers, while others are holding off on hiring or starting new projects.

Who are the parties opposing the Trump administration’s tariffs and what are they arguing?

Lawsuits from multiple states and businesses opposing the new tariffs have been consolidated into the one case before the Supreme Court.

The states argue tariffs will harm their economies by raising costs for small businesses, and ultimately for consumers. Businesses argue that even if they wanted to source more products from the U.S., the supply chains don’t exist here. Industries such as technology, health care and food production rely on imported goods to keep their companies running.

President Trump has argued he has the authority to levy tariffs under IEEPA. Historically, that law has been used to sanction countries that pose a threat to international peace. Economists say it has never been used to justify tariffs, which are import taxes paid directly to U.S. Customs and Border Patrol by companies bringing items into the country.

Oregon and the other parties suing the Trump administration say only Congress has the power to levy taxes.

Gutman told the court that presidents have the power to set trade quotas or implement an embargo, but what makes tariffs different is that they raise revenue for the government, making tariffs a tax.

“That makes it a far more significant power,” Gutman said. “It creates additional danger of overuse.”

What does the Trump administration say about their tariffs?

President Trump has made tariffs the focus of his economic overhaul, claiming they will raise revenue for the U.S. while rekindling the country’s manufacturing sectors.

Over the past 10 months, Trump has repeatedly announced different tariffs only to roll some of them back. However, the only ones being challenged before the Supreme Court on Wednesday are those Trump levied under IEEPA. They include tariffs imposed against Mexico, Canada and China, which the president has said are meant to stop the flow of fentanyl to the U.S. The other tariffs levied under IEEPA were widespread import taxes against nearly every country that the administration says will correct trade imbalances.

“The stakes in this case could not be higher,” the Trump administration wrote in its petition to the Supreme Court. “The President and his Cabinet officials have determined that the tariffs are promoting peace and unprecedented economic prosperity, and that the denial of tariff authority would expose our nation to trade retaliation without effective defenses and thrust America back to the brink of economic catastrophe.”

Why is Oregon arguing the case before the nation’s high court?

Oregon’s lawsuit first went in front of the International Trade Court in New York, which ruled in favor of Oregon and the other states. The Trump administration appealed the Trade Court’s decision to the U.S. Court of Appeals for the Federal Circuit, which also ruled in favor of the states in late August.

The Trump administration appealed that ruling to the Supreme Court, and the justices agreed to hear the case. The lawsuit led by Oregon and 11 other states was then combined with other cases from businesses and entities challenging the president’s authority to levy import taxes under IEEPA.

This story was updated after oral arguments ended.