Supreme Court Trump tariff arguments: What's at stake

The Supreme Court weighs the legality of tariffs that have raised costs on clothing, toys, cars, liquor and much more.

The Supreme Court on Wednesday will start weighing the legality of tariffs that have raised costs on clothing and toys from China, cars and trucks from Canada and Mexico, liquor from Europe, and much more.

Yet even if the justices rule against the duties, implemented by President Donald Trump on a country-by-country basis, analysts argue there’s no guarantee that things will return to normal for consumers and businesses.

“The removal of [country-specific] tariffs would open the door for trade policy uncertainty to rise again,” analysts with Oxford Economics research group said in a note published Tuesday. That uncertainty, the note added, could end up delaying hiring and business investment — something that could further drag down an already-ailing labor market.

The tariffs are being challenged by five small businesses that believe Trump illegally used emergency powers to bypass Congress and impose the duties. The businesses, which include a wine importer, a pipe and fittings company, and a bicycle importing firm, allege they are facing significant financial burdens as a result of the tariffs.

“Genova Pipe is dependent on imports to continue its manufacturing operations,” attorneys for the businesses said in their suit, referring to the fittings firm. “The tariffs will directly increase the cost of raw materials, manufacturing equipment, and resale goods imported from abroad by Genova Pipe.”