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"A federal judge just declared most of Trump's tariffs illegal and unconstitutional, and the Supreme Court fast-tracked the case for November. If they agree, the Treasury has to refund $750 billion to $1 trillion. If they don't, every future president gets unlimited power to tax imports by declaring fake emergencies. Nine justices are about to decide America is looking at the biggest refund in history or the end of congressional power over taxes."
~ Coin Bureau
The video discusses the constitutional challenge to President Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA), following rulings by the Court of International Trade and the Court of Appeals for the Federal Circuit that the IEEPA does not authorize presidents to impose tariffs simply by declaring an emergency. The Supreme Court has agreed to fast-track the appeal, which is set to be decided by early 2026. This case has massive financial implications, as Treasury Secretary Scott Bessant estimates that upholding the lower court rulings could result in $750 billion to $1 trillion in refunds to importers by mid-2026, as over $159 billion in tariffs have already been paid since February. The outcome is critical: a ruling against Trump could lead to vast refunds, potentially lowering inflation, while a win would grant the President virtually unlimited emergency trade powers without Congressional approval. The current uncertainty surrounding the tariffs, often called "Schrödinger tariffs," is already hammering corporate bonds and complicating supply chain management.
The core of the legal debate centres on whether the IEEPA, passed in 1977 to allow presidents to freeze assets and block transactions during genuine emergencies, can be broadly interpreted to include the power to levy taxes (tariffs). Lower courts have rejected the administration's interpretation, arguing that using the IEEPA for permanent tariffs transforms emergency powers into a general licence to regulate the entire U.S. economy, violating the non-delegation doctrine which reserves the power to lay and collect taxes exclusively for Congress. The Supreme Court's conservative majority is split on the issue of executive power versus constitutional structure. The administration's legal defence, led by Solicitor General D. John Sauer, includes a warning that striking down the tariffs would cause "catastrophic economic consequences." Ultimately, the court's decision will determine whether Congress controls the nation's finances or if the President can tax by decree, setting a precedent for presidential power for generations.
0:00 Intro
0:57 Bessent in a Pickle
3:20 The Tariffs on Trial
7:56 Why The Courts Are Calling BS
12:51 The November Showdown
17:49 What Happens if the Tariffs Are Cancelled
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=ZgAjFCdXtvk
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
