Of all the kingly and capricious powers that Donald Trump enjoys exercising as president, the ability to threaten arbitrarily large tariffs is his favorite. Who could ever forget β€œLiberation Day” in April 2025, when America declared economic warfare on the rest of the world? Or, at least it was his favorite powerβ€”before the Supreme Court ruled today that many of the tariffs he had imposed in the past year were illegal. The ruling is a political embarrassment to the administration, which might now have to issue refunds on up to $142 billion of tariff revenue. But the Court’s decision is less significant economicallyβ€”with time and effort, Trump can largely reconstitute the tariff regime that was just overthrownβ€”than it is democratically. The Court, despite its conservative majority, has enforced the limits on arbitrary presidential authority that congressional Republicans were too timid to enforce themselves.

The case, Learning Resources, Inc. v. Trump, concerned the president’s extraordinary use of the 1977 International Emergency Economic Powers Act, which grants the preside

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