Trump says tariffs ‘vital’ as U.S. Supreme Court set to test his authority – National

US President Donald Trump said Wednesday he wants to attend a Supreme Court hearing next month about his “vital” rate politicians, calling it “one of the most important things we've ever had.”

US Supreme Court On Nov. 5, he will hear oral arguments on whether the president can unilaterally impose tariffs under emergency powers to bypass Congress.

The case involves Trump's tariffs against Canada, Mexico and China over fentanyl trafficking allegations, as well as his “reciprocal tariffs” against dozens of other countries.

Trump has argued that he has the authority to use tariffs as a negotiating tool to reach trade agreements and, in the case of the fentanyl tariffs, force countries to take action on issues related to U.S. national security.

“Tariffs are vital to this country,” he told reporters in the Oval Office.

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“If this country is not allowed to impose tariffs, if this country is not allowed to have the President of the United States negotiate tariffs on its behalf, we will be in a position where we become a third world country. We cannot allow that to happen.”

Several courts have ruled that Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs by declaring a national emergency was illegal and violated the US Constitution, which gives the US Congress the power to set tariffs and taxes.

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The rulings say IEEPA does not specifically mention tariffs as a response to such emergencies, backing the dozens of state attorneys general and small business representatives who brought the case.

However, the tariffs remain in place as the Trump administration appeals.


Click to watch video: What Trump's 'illegal' tariff ruling means for US-Canada trade


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Courts have said Trump has other powers to impose tariffs without Congress, including Section 232 of the Trade Expansion Act, which was used to impose tariffs on foreign steel, aluminum, automobiles and other specific industries.

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Trump said Wednesday the U.S. is raking in record revenue from tariffs that will offset decades of trade injustice that he said has caused the country's national debt to soar to nearly $38 trillion.

“Because of tariffs, we are a strong, healthy country. We are a nationally secure and internationally secure country. We are a very rich country,” he said.

“Without tariffs, it's a slog for this country, a big slog… We're getting money in a way we've never had before. Without tariffs, this wouldn't happen.”


The US Justice Department warned in court papers in the case that eliminating the tariffs could mean “financial ruin” for the United States.

Trump also claimed that he resolved global conflicts by threatening high tariffs on countries including India and Pakistan.

“If you want to fight, that's fine, but you will pay tariffs, and they will be very significant,” he told both countries. “In two days they will call and they are not going to fight anymore.”

Trump has not lifted IEEPA tariffs on Canada, even though Ottawa has taken several steps to strengthen border security and combat fentanyl trafficking and production.

A presidential note last month said Canada still needs to do more to address this problem.

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Trump exempted goods under the Canada-United States-Mexico Free Trade Agreement (CUSMA) from these tariffs, meaning less than 15 per cent of Canadian exports are subject to the 35 per cent tariff. Potash and energy exports that do not comply with CUSMA are subject to lower 10 percent tariffs under Trump's orders.

Trade negotiations between Canada and the Trump administration currently focused on securing industry deals Ottawa hopes it will reduce Section 232 tariffs on steel and aluminum, as well as energy, with future agreements on autos and other sectors.

Minister of Trade of Canada and the United States Dominic LeBlanc told a Senate committee last month that Canada remains committed to the position that fentanyl-related tariffs should be eliminated.

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