The looming Supreme Court showdown over President Donald Trump’s tariffs amounts
to an epic clash between two of the most deeply ingrained tenets of the
conservative legal movement.
The first is that presidents need and are entitled to extreme deference on
matters of national security and foreign policy. That precept suggests the six
conservative justices may be willing to uphold Trump’s unprecedented move to
bypass Congress and unilaterally impose sweeping global tariffs.
On the other hand, an indisputable hallmark of the Roberts court is a deep
mistrust for government meddling in the free market. That ideological
predilection, which has fueled a slew of pro-business, anti-regulatory rulings,
could prompt the court’s conservatives to view Trump’s tariffs more skeptically
than they view many of his other, non-economic policies.
“I think that some of the justices that matter are going to feel a bit torn,”
said Jonathan Adler, a professor at William and Mary Law School. “What’s
interesting here is that this case requires some of the conservative justices to
confront a conflict between different strands of their own jurisprudence.”
In the case set for oral arguments Wednesday, Trump is asking the justices to
overturn lower-court decisions that declared many of the tariffs — the
centerpiece of Trump’s economic agenda — an illegal overreach. The lower courts
found that a 1977 law, the International Emergency Economic Powers Act, did not
authorize the president to impose such broad tariffs.
FOREIGN RELATIONS AND THE KAVANAUGH FACTOR
Lurking just below the surface in the case is a key dynamic: Should Trump’s
tariffs be treated as a garden-variety economic policy, or are they a core part
of the president’s management of international relations and national security?
“How this case comes out will depend in large part on what the frame or the lens
on it is,” said Vikram Amar, a law professor at the University of California at
Davis. “Is this a case about unbridled, unauthorized — at least not explicitly
authorized — broad executive authority, or is this a case about presidential
ability to discharge foreign affairs and national security responsibilities?”
That question could be most acute for Justice Brett Kavanaugh, whose public
appearances frequently include an account of his searing experiences working in
President George W. Bush’s White House after 9/11.
Kavanaugh is often the high court’s most outspoken voice for the president’s
need for flexibility and dexterity in response to international challenges. But
he is also highly skeptical of government power in the economic realm.
A year before Trump nominated him to the Supreme Court, Kavanaugh declared his
fealty to the conservative theory known as the “major questions doctrine” — the
notion that courts should block executive branch actions of widespread impact
when their legal basis is ambiguous.
Staking out his position in a case involving net neutrality rules, Kavanaugh
said he saw the doctrine applying to “a narrow class of cases involving major
agency rules of great economic and political significance.”
“If an agency wants to exercise expansive regulatory authority over some major
social or economic activity … an ambiguous grant of statutory authority is not
enough,” Kavanaugh wrote. “Congress must clearly authorize an agency to take
such a major regulatory action.”
Under this sort of test, the widespread tariffs Trump implemented would be on
shaky legal ground because the 1977 law at issue, known as IEEPA, does not
expressly empower the president to enact tariffs.
However, just four months ago, Kavanaugh emphasized that the court’s skepticism
about legally dubious executive branch actions has an important limit.
“The major questions canon has not been applied by this Court in the national
security or foreign policy contexts. … The canon does not translate to those
contexts because of the nature of Presidential decisionmaking in response to
ever-changing national security threats and diplomatic challenges,” he wrote
in a solo concurring opinion in a case about funding to improve internet and
phone service for low-income and rural Americans.
TRUMP CLAIMS TARIFF POWER
Trump announced his sweeping, worldwide “Liberation Day” tariffs in April,
hitting nearly every country in the world with a minimum 10 percent tariff and
including rates reaching 50 percent on some nations. The president claimed the
authority to impose the tariffs under IEEPA, which Congress passed to try to
rein in broader powers granted by a predecessor statute.
IEEPA gives the president the right to “regulate … importation” of items from
foreign countries during a presidentially declared national emergency. It’s
fairly clear that in such an emergency the president has the power to put an
embargo on foreign individuals or particular foreign countries.
The administration contends that broader power to regulate and prohibit imports
implies the related power to impose import taxes better known as tariffs, but
opponents of Trump’s move say Congress knew how to confer that power on the
president if it wanted to do so.
“Nowhere does it say tariffs, taxes, duties,” noted Elizabeth Goitein, who
studies emergency powers at New York University’s Brennan Center.
A federal appeals court ruled, 7-4, in August that Trump’s broad tariffs
exceeded his authority under IEEPA. However, the Federal Circuit’s majority
stopped short of saying the law could never be used to impose more targeted
tariffs.
WATCHING THE COURT’S CENTER
Many experts consider Kavanaugh likely to lean toward blessing the tariffs,
although his vote isn’t a sure thing. Justices Clarence Thomas, Samuel Alito and
Neil Gorsuch are thought by court watchers to be even more likely to uphold the
tariffs. Assuming the three liberal justices vote against the administration,
that leaves Chief Justice John Roberts and Justice Amy Coney Barrett in play,
although under that scenario both Roberts and Barrett would have to join the
liberals to assemble enough votes to strike down the tariffs.
“The center of the court is going to be especially interesting to watch,” Roman
Martinez, a former law clerk to Kavanaugh and Roberts, said during a discussion
at Georgetown Law.
“I think this case will probably split the conservatives,” said Cary Coglianese,
a University of Pennsylvania law school professor who specializes in
administrative law and regulatory processes.
Among the liberal justices, the Trump administration’s strongest prospect for
support in the tariffs cases may be Obama appointee Elena Kagan. Like Kavanaugh,
she saw presidential decisionmaking up close in White House jobs, although hers
were under President Bill Clinton.thathis travel ban policy. That seemed to show
deference to the president’s need for flexibility, although she joined the
court’s liberal wing in dissent six months later when the court issued a final,
5-4 ruling upholding the travel ban.
‘THE STAKES IN THIS CASE COULD NOT BE HIGHER’
Some court watchers say the conservative justices, including Trump’s three high
court appointees, could be hesitant to rule against Trump on an issue so central
to his policy agenda. Just as many saw politics at work in the Supreme Court’s
2012 decision to leave a key part of President Barack Obama’s signature health
care law in place, the justices might decide not to provoke the political fury
that would be unleashed by striking down the tariffs.
“This, along with ICE and immigration … is the paramount domestic policy
initiative of this president,” said Donald Verrilli, who served as solicitor
general under Obama. “One way of thinking about this is that the justices who
are going to determine the outcome of this case feel like they need a really
pretty strong case on the legal merits before they’re going to decide to cross
swords with the president.”
The tariffs case also comes to the court amid an extraordinary winning streak
for Trump and his policies. Since January, Trump has brought an unprecedented
number of emergency appeals to the justices and has prevailed in more than 20 of
them, freeing his hand to gut foreign aid, fire leaders of federal agencies, and
strip hundreds of thousands of immigrants of deportation protections.
Trump and his administration have sought to keep that streak going by painting a
potential defeat for his tariff policy as so cataclysmic that the justices would
be ill-advised to take that risk.
Trump warned on the eve of the arguments that the case “is, literally, LIFE OR
DEATH for our Country.”
Trump’s lawyers have also pushed the rhetorical envelope. The Trump
administration’s formal plea to the high court to take up the tariff case turned
heads in the legal community by including language so hyperbolic that it seemed
designed to remind the justices of the intense retort they are certain to
receive from Trump if they rule against him.
“The stakes in this case could not be higher,” Solicitor General D. John Sauer
wrote. “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.”
THE WALL STREET JOURNAL EFFECT
That sort of apocalyptic verbiage is a rarity in Justice Department filings with
the high court. While the justices will likely be reluctant to mount a direct
challenge to those sorts of presidential predictions, the administration’s
sky-is-falling claims could actually prompt some of the court’s conservatives to
give Trump less running room, lawyers who practice before the court said.
Even as the legal challenges have been playing out, Trump has raised doubts
about whether the tariffs his imposed are a response to bona fide emergencies or
more mundane concerns. Last month, Trump declared he was imposing an additional
10 percent tariff on Canada to express his irritation at a TV advertisement the
province of Ontario aired showcasing President Ronald Reagan’s opposition to
tariffs.
“If the justices think that these assertions are kind of pretextual, I think
that could shape their thinking about the other more purely legal issues in the
case,” said Martinez, who authored an amicus brief for the Chamber of Commerce
opposing the tariffs. “It could … bring into sharp relief in their eyes the
dangers of giving the president this broad authority to impose tariffs. So,
that’s a dynamic that could play out, as well.”
Another factor undercutting the potential political blowback the court could
receive from voiding the Trump tariffs: Most of the Republican establishment is
profoundly unenthusiastic about them. Even some Trump backers might quietly
celebrate a court ruling preventing the kind of broad-based tariffs the
president announced in April.
For decades, liberals and many legal academics have argued that the Roberts
court is beholden to business interests, delivering a broad blow to the power of
federal government agencies to regulate businesses, reining in federal authority
to prevent development on environmental grounds and weakening federal
enforcement of securities laws.
If one subscribes to the notion that the opinions of some billionaires hold
outsized sway at the court, well-heeled business people and investors have been
sharply negative about the tariffs, although the markets have shrugged them off
at least for now.
“Tariffs are taxes,” one of many Wall Street Journal editorials skewering
Trump’s tariffs declared. “If he can impose a tax on any imported product any
time he wants, he really has the power of a king.”
In short, while a ruling against the tariffs would surely infuriate Trump, it
wouldn’t do much if anything to hurt the conservative justices’ standing in
their legal, political and social circles.
A RULING AGAINST HIM WOULDN’T LEAVE TRUMP WITHOUT TOOLS
If the justices are looking for some sort of middle ground on tariffs or are
divided in a way that makes an up-or-down ruling on Trump’s powers infeasible,
they have a couple of options.
The court could reject Trump’s broadest and most extreme tariffs, while
highlighting his options under laws other than IEEPA. Many legal experts have
pointed to powers Congress gave the president in 1974 to put quotas on imports
and impose tariffs of up to 15 percent “to deal with large and serious United
States balance-of-payments deficits,” a concept that trade specialists say
encompasses trade deficits.
Those experts argue that Congress’ decision to pass that law, known as the Trade
Act, undercuts Trump’s arguments that he should be able to use IEEPA to address
the trade deficit problem.
However, the Trade Act comes with clear limits, declaring that those tariffs and
trade restrictions must be “temporary” and last no longer than five months,
unless Congress extends them. That may not represent enough of a cudgel for the
Trump administration to use in talks with foreign countries in an effort to get
them to agree to longer-lasting trade deals.
Another concession the Supreme Court could offer Trump is to allow some tariffs
involved in the legal fight to remain in effect. Part of the battle is over
tariffs he imposed on Canada and China over trafficking in fentanyl and drug
precursors into the U.S. and on Mexico to address those problems as well as
migration and human trafficking.
A ruling upholding those tariffs, but striking down the more global import taxes
linked to trade deficits, would allow Trump to claim a partial win but probably
won’t insulate the justices from a presidential rebuke.
THE OPTICS OF TURNABOUT
Despite the efforts some justices may make to distinguish the worldwide tariffs
from other policies federal courts have blocked under the major questions
doctrine, if the court allows Trump’s tariffs, many politicians and commentators
are likely to accuse the justices of a double-standard.
Exhibit No. 1 in this argument will be the Supreme Court’s ruling striking down
one of President Joe Biden’s signature policies: his student debt relief plan.
That 6-3 decision, wielding the doctrine to invalidate student debt forgiveness,
was handed down by the same nine justices over two years ago.
“It’s arguably quite analogous,” Goitein said. “Will the Supreme Court act
consistently?
Of course, the justices might say in a ruling upholding the Trump tariffs that
they are pivoting based on legal substance and not politics. But for a court
that many members of the public already view skeptically, the result may look
partisan.
“This will be a true test of the Supreme Court in many, many ways,” Goitein
said.
Erica Orden contributed to this report.
Tag - Net neutrality
BRUSSELS — The European Commission is dialing reform, but not everyone is
picking up.
Following years of talks, Brussels is almost ready to drop a long-awaited
telecommunication blueprint designed to upgrade networks and support the
industry.
The Digital Networks Act, expected to land Dec. 16, will overhaul the current
rulebook to make it easier for operators to roll out 5G and fiber, and boost
investment in Europe’s digital infrastructure.
But it’s likely to upset players from national governments to tech firms in the
process.
The continent’s biggest telecom companies have long argued that stifling rules
and a fragmented single market make it hard for them to scale and earn
sustainable profits — and take European networks to the next level.
“Never has connectivity been so important to the life of people” but “at the
same time, our industry has trouble in many regions to achieve a decent return
on capital,” said Vivek Badrinath, the boss of global mobile association GSMA.
But not everyone is buying the crisis pitch — here are the battle lines ahead of
the proposal.
BIG TELCOS VS. BIG TECH
Years of lobbying by Europe’s top telcos to have data-hungry platforms such as
TikTok, Netflix and Google’s YouTube help foot the bill for network expansion
seem to have paid off.
The Commission is now weighing how to tackle “challenges in the cooperation”
between tech and telecom players in its reforms.
One of the options on the table is turning into a political minefield:
Empowering regulators to settle potential disputes between the two groups over
how they handle traffic.
Opponents of regulatory intervention fear that it will give operators a way to
pressure content providers for payments, akin to the unpopular proposal known as
“fair share” that was floated under the last Commission.
At worst, they say, it could even upend the internet as we know it by
undermining net neutrality — the principle that service providers need to treat
all traffic equally, without throttling or censoring.
“This would have immediate and far-reaching consequences, harming European
consumers, businesses, digital rights and the sustainability of the creative and
cultural sectors, ultimately risking a fragmented Internet and single market,” a
broad coalition, ranging from civil society and media organizations to
audiovisual players, wrote earlier this month.
The continent’s biggest telecom companies have long argued that stifling rules
and a fragmented single market make it hard for them to scale and earn
sustainable profits. | Andy Rain/EPA
Regulators themselves say they don’t see any market failure, or need for a
legislative fix.
“It’s increasingly hard for me to think that the Commission is approaching this
in good faith because they cannot ignore the chaotic impact that something like
this would have,” said Benoît Felten, an expert at Plum Consulting who authored
a study on the topic commissioned by Big Tech lobby CCIA.
Tech companies will fight tooth and nail against any move to hold them to the
same obligations that telecom operators have to follow.
“The same service, same rules principle should be a no-brainer,” said Alessandro
Gropelli, the boss of telecom trade association Connect Europe. “You cannot have
competitiveness if one party is playing the game with their hand tied behind
their back and the other party is playing the same game with both hands.”
INCUMBENTS VS. CHALLENGERS
Brussels’ deregulatory mood is further deepening rifts between Europe’s top
telecom providers and their challengers, who have long praised the existing
rulebook that they say enables them to take on legacy players.
“The Commission wants to deregulate dogmatically” in order “to boost the largest
operators in Europe,” said Luc Hindryckx, the director general of the European
Competitive Telecommunications Association, a trade body. “One way to do it is
to weaken the competition to allow a few incumbents to make it through and pave
the way for consolidation, because if the competitors are on the verge of
bankruptcy, they will ask to be merged.”
Telecom challengers are up in arms against the direction of travel, which could
see the Commission dial down the regulatory pressure on Europe’s legacy telcos
to open their ducts and fiber lines to competitors.
The EU executive wants to move away from heavy, upfront rules and closer
scrutiny of dominant players to prevent abuse, instead relying on standard law
enforcement. It argues the current system worked to boost competition but has
outlived its purpose.
It is “alarming that the European Commission is now proposing to relax
regulation on former fixed monopolies,” a coalition of nine network operators
wrote in a letter this month. Signatories — including France’s Iliad and the
U.K.’s Vodafone — called out the proposed “backwards step” and warned against
the risk of “re-monopolisation.”
This shift, the opponents say, could unravel years of progress by undermining
market predictability, deterring investment and pushing up wholesale prices —
costs that would inevitably be passed on to consumers.
“5G has been a disaster because the real 5G is hardly here,” the Commission’s
top digital civil servant Roberto Viola said. | Robert Ghement/EPA
“In Germany, it seems that people never run a red light. One could say that
people no longer run red lights and then change the law that says running a red
light is a major offense. What do you think is going to happen?” Hindryckx
quipped.
The legacy players don’t agree. “The current ex-ante system leads to low
investments and harms roll-out of innovative networks,” said Gropelli from
Connect Europe. “Reform is a must, or we’ll remain global laggards in roll-out
of critical networks.”
CAPITALS VS. BRUSSELS
National governments also aren’t cheering the reforms, with EU capitals
bristling at the idea of Brussels muscling in on territory they consider their
own.
That’s the case for the allocation of spectrum — the finite and very much
in-demand resource powering wireless communications, which is auctioned at a
national level for billions of euros.
“5G has been a disaster because the real 5G is hardly here,” the Commission’s
top digital civil servant Roberto Viola said in September. “We have been
sleeping and lost fifteen years in discussing … who should assign the
frequencies,” he said.
Still, the topic is largely off the table for national governments. “Spectrum
harmonization is not the favorite topic of member countries,” Katalin Molnár,
the ambassador for Hungary, said last year as the country chaired talks among EU
governments on the issue.
The current cooperation between countries “works well,” the 27 EU nations said
in a joint position, emphasizing that spectrum management is a “key public
policy tool” that falls under a “sustained significance of member states’
national competencies in that regard.”
This will be a major red line for the Council of the EU, where capitals will
eventually hammer out their position on the reforms.
The industry, however, says reforms are essential for the economic benefits that
the EU is craving. “The wind has never been as strong in the sails of the ship
that goes towards a more efficient telecom market today,” GSMA’s Badrinath said.
“Is that enough to get the right outcome? Well, that’s what we want to believe.”