Supreme Court May Strip Trump of His Favorite Power Play – White House Reportedly in Panic Mode

The Trump administration is bracing for a major setback after Supreme Court justices signaled they may restrict one of President Donald Trump’s favorite tools of power: sweeping, unilateral tariffs.

Inside the White House, the mood after Wednesday’s arguments was described as “grim” by two people familiar with internal discussions. The timing could not be worse for the administration, which is still dealing with backlash over election losses that many Republicans blame on the government shutdown and a failure to focus on cost-of-living issues.

For Trump, tariffs have never been just an economic policy. They have been a pressure tactic, a diplomatic lever, and a political bluff all rolled into one. He has used the threat of massive tariffs to push foreign governments to alter domestic policies, secure border enforcement, and even influence peace negotiations. At one point, he threatened economic penalties against Canada over a television ad he disliked.

But several justices appeared deeply skeptical of Trump’s broad interpretation of the International Emergency Economic Powers Act, a 1977 law that has allowed him to impose tariffs on nearly any nation without congressional approval. Even a partial ruling against him could cut sharply into the president’s foreign policy authority and reshape his negotiating style.

Solicitor General D. John Sauer, arguing on behalf of the administration, insisted the emergency tariff powers are essential. He said tariffs serve as leverage to get foreign governments to change course and cited Trump’s recent agreement with China as proof the tactic works.

“The tariffs are an incentive, a pressure point, leverage, bargaining chip,” Sauer argued. “If the threat of imposing those tariffs gets countries to change their behaviors, then that is the most effective use of the policy.”

Three of Trump’s top economic officials attended the hearing. Treasury Secretary Scott Bessent later told reporters he believed the administration made a strong case. A White House official also pushed back on the idea that the atmosphere was gloomy, claiming the internal assessment remained “optimistic.”

However, several justices questioned whether Congress ever intended to grant the president such broad authority. Justice Neil Gorsuch pressed the administration on whether the Constitution allows Congress to hand over unlimited tariff power to the executive branch and suggested the current system may already go too far.

Critics inside the administration worry that a ruling limiting Trump’s tariff power would strike at the core of his strategy. If the Court pulls back his authority, officials expect a scramble to rebuild the tariff framework under narrower trade laws, a slower process that lacks the immediacy Trump favors.

For now, the White House is preparing public messaging and possible backup approaches, though they admit none would allow Trump to act as quickly or forcefully as the current emergency tariff authority.

Press Secretary Karoline Leavitt signaled that the administration has contingency plans but insisted they remain confident.

“Look at what President Trump has been able to do with the leverage of tariffs,” Leavitt said. “This case is not just about President Trump. It is about future presidents as well.”

A ruling is expected early next year. Until then, Trump continues to wield tariffs freely. Whether he still will afterward is now in the hands of the Court.

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Joseph Johnson

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