Tariff Tussle Heads to the Nine Justices
The Big Picture: The White House’s trade war is about to get a judicial stress test. On Wednesday, the U.S. Supreme Court hears oral arguments over whether most of President Donald Trump’s sweeping import tariffs violate federal law,a ruling that could force the government to refund billions in duties and rewrite its negotiating playbook, BBC reports.
The Details: A coalition of small businesses and several states say the administration overstepped by slapping levies on everything from steel to school-room toys. One plaintiff, Illinois-based Learning Resources, expects to shell out $14 million in tariff payments this year, seven times its 2024 bill, the company told the BBC. Trump calls the case “about our country, not me,” warning that a loss would leave the U.S. “weakened” in global talks.
Why It Matters: If the justices agree the duties are illegal, not only would Washington have to cut rebate checks, it could also lose a favorite stick in future trade negotiations. The reaction from industry has been swift: manufacturers say the constant policy whiplash has “thrown our business into unbelievable disruption,” according to Learning Resources CEO Rick Woldenberg.
Around the Tax World
- Baltic bragging rights. Estonia once again tops the Tax Foundation’s International Tax Competitiveness Index, while France sinks to last thanks to a temporary 36.1% corporate surtax (Euronews).
- Summons slip-up. The IRS sent supermarket heiress Julie Fancelli a treaty request that originally listed someone else’s Israeli tax bill, one of several clerical blunders flagged in a withering Bloomberg Tax analysis.
- Fan Bingbing speaks. The Chinese star, fined $128 million in 2018 for tax evasion, told The Hollywood Reporter she’s slowly rebuilding her career and “will always cooperate” with authorities.
- Goodbye, travel tax? A Philippine Senate bill would scrap the country’s ₱1,620 (about $28) levy on outbound flyers, aiming to make vacations abroad cheaper (Travel and Tour World).
By the Numbers
Prime Number: 40.0%. That’s the EU’s tax-to-GDP ratio in 2023, according to Eurostat, proof that taxes, not snow, are the region’s great leveler (IndexBox).
Looking Ahead
All eyes now turn to the Supreme Court’s docket. A decision on the tariff case could land as early as spring 2026, just in time to shake up budget season on both Capitol Hill and factory floors worldwide.