"If Donald Trump loses his Supreme Court fight over tariffs, the US may be forced to return "tens of billions of dollars to companies that have paid import fees this year, plus interest," The Atlantic reported. And the longer the verdict is delayed, the higher the refunds could go, possibly even hitting $1 trillion. For tech companies both large and small, the stakes are particularly high. A Trump defeat would not just mean clawing back any duties paid on imports to the US that companies otherwise can use to invest in their competitiveness."
"But, more critically in the long term, it would also end tariff shocks that, as economics lecturer Matthew Allen emphasized in a report for The Conversation, risked harming "innovation itself" by destabilizing global partnerships and diverse supply chains in "tech-intensive, IP-led sectors like semiconductors and software." Currently, the Supreme Court is weighing two cases that argue that the US president does not have unilateral authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA)."
"Defending his regime of so-called "reciprocal tariffs," Trump argued these taxes were necessary to correct the "emergency" of enduring trade imbalances that he alleged have unfairly enriched other countries while bringing the US "to the brink of catastrophic decline." Not everyone thinks Trump will lose. But after oral arguments last week, prediction markets dropped Trump's odds of winning from 50 to 25 percent, Forbes reported, due to Supreme Court justices appearing skeptical."
The Supreme Court is weighing challenges to presidential tariff authority under the International Emergency Economic Powers Act (IEEPA). A ruling against the tariffs could require the United States to refund tens of billions of dollars to importers, with potential refunds rising over time and possibly approaching $1 trillion. Refunds would free funds for companies and ending tariff shocks would help stabilize global partnerships and diverse supply chains. Tech firms face high stakes because tariff instability risks harming innovation in semiconductors, software, and other IP-led sectors. Prediction markets fell after skeptical oral arguments, and many economists filed briefs opposing unilateral tariff authority.
Read at Ars Technica
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