White House Prepares for Key Supreme Court Hearing
The White House is preparing contingency plans ahead of the U.S. Supreme Court hearing on Donald Trump’s authority to impose reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA). Press Secretary Karoline Leavitt said the administration remains confident in its legal arguments but is also ready with backup options.
President Trump called the case “life or death” for the nation, arguing that tariffs are vital for both economic and national security. Leavitt emphasized that the outcome could shape how future presidents use tariff powers. Treasury Secretary Scott Bessent confirmed he will attend the hearing in person.
Supreme Court to Rule on IEEPA Tariff Powers
The Supreme Court is set to hear arguments on Wednesday regarding Trump’s use of the IEEPA to impose broad tariffs. Lower courts had earlier ruled these tariffs invalid but allowed them to stay in place while the appeal continues.
Deutsche Bank strategist Jim Reid noted that the hearing may reveal how the justices view executive powers in trade policy. If the Court upholds the lower court ruling, several tariffs imposed this year could be overturned, reducing government revenue. The administration might then seek alternative legal methods to replace them.
U.S. Government Shutdown Hits Record 36 Days
Meanwhile, the U.S. government shutdown has reached its 36th day, making it the longest in American history. With no resolution in sight, the shutdown is estimated to be costing the economy nearly $15 billion every week.
Government services, paychecks, and public programs remain frozen, echoing the record set during Trump’s 2019 shutdown. However, economists warn that this time the impact could be far worse given current economic weakness, inflation, and rising job insecurity.
Millions of Americans are facing delays in food assistance programs just as the holiday season begins. “Shutdowns rarely cause lasting crises,” said Jonathan Millar, senior U.S. economist at Barclays. “But this time might be different.”
Economic Outlook: What’s Next?
The Supreme Court’s decision could significantly influence U.S. trade and fiscal policy heading into 2026. Analysts say the ruling may define how far future presidents can go in using emergency powers for economic measures.
Combined with the prolonged government shutdown, the decision will likely play a major role in shaping investor confidence and market direction in the coming months.
USTR Greer: Supreme Court Tariff Ruling Likely by Year-End, U.S. Focused on Stable China Trade Ties
USTR official Jamieson Greer said the U.S. Supreme Court may issue its tariff ruling before the end of the year, clarifying that President Trump never claimed to have unlimited tariff authority.
Greer emphasized that the U.S. can reshore or near-shore rare earth processing and has multiple tools to manage its trade relationship with China, but maintaining stability remains a key objective.
He added that the U.S. Treasury Department would determine the timeline for any potential refund payments related to tariffs once the ruling is announced.
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