Supreme Court hears arguments against Trump’s tariffs

From CalMatters economy reporter Levi Sumagaysay:

The U.S. Supreme Court on Wednesday considered whether President Donald Trump is exceeding his authority in imposing wide-ranging tariffs on imports from most of the rest of the world.

The nation’s highest court heard arguments about the Trump administration’s use of the International Emergency Economic Powers Act to justify his tariffs. Some justices expressed skepticism about the president’s ability to act on tariffs unilaterally.

• Chief Justice John Roberts: “Imposition of taxes on Americans … has always been the core power of Congress. So, to have the president’s foreign affairs power trump that, that basic power for Congress seems to me to kind of at least neutralize between the two powers, the executive power and the legislative power.”

California filed a similar lawsuit over Trump’s tariffs earlier this year. That suit is essentially on hold pending the high court’s decision on this case, which was brought by a dozen other states and some small businesses. 

• California Attorney General Rob Bonta, outside the Supreme Court after arguments on Wednesday: “American people deserve not to be the victim of unlawful taxes. Tariffs are taxes.”

The Consumer Technology Association, whose members include some of California’s biggest tech companies, co-submitted an amicus brief with the U.S. Chamber of Commerce. The president’s tariffs are “causing irreparable harm” to the groups’ members and in some cases are “threatening their very existence,” they said in the brief.

If the Supreme Court decides the president does not have wide-ranging tariff authority under the law he has cited, the U.S. government will have to issue an estimated $90 billion in refunds to businesses that have paid the tariffs — which Justice Amy Coney Barrett speculated would be “a complete mess.” 

For years Gov. Gavin Newsom fended off speculations that he was eyeing the presidency, an ambition that appeared to be a longshot at many points during his governance. But Proposition 50 has catapulted the governor onto the national stage again — and potentially as a frontrunner for the Democratic presidential candidacy.

As CalMatters’ Jeanne Kuang explains, Newsom’s national prominence wasn’t always a guarantee, despite his efforts to confront Republicans outside of California, such as debating them on Fox News. In 2023, he urged other states to follow his lead for a constitutional amendment on gun control, though none heeded the call.

But since Prop. 50, Newsom’s national standing has risen: This year, for the first time, he acknowledged he’s considering a possible run for president. The tens of thousands of new nationwide donors who supported his ballot measure could also now serve as a roster of supporters for a potential campaign. And in his Prop. 50 victory speech on Tuesday, he called on other Democratic-led states to advance their own redistricting efforts — and essentially follow his lead.

• Celinda Lake, Democratic pollster and strategist: “It was a really outside-the-box idea, implemented well, implemented fast, united the party. And it also showed he was tough.”

Read more here.

Speaking of Prop. 50, CalMatters’ Maya C. Miller dives into the notable takeaways of its overwhelming victory and what comes next for California.

Hours after Prop. 50 passed, the California Republican Party said it plans to sue over Prop. 50, arguing that it is unconstitutional because it carves out districts in favor of Latino voters, at the expense of other ethnic groups. The U.S. Supreme Court could also issue an upcoming ruling that would give Republicans a big advantage in the South.

Five California Republicans in the U.S. House of Representatives are also at a higher risk of losing reelection next year, raising questions about whether they should run in their current, redrawn district; switch to a new one; or drop out entirely. 

That includes Rep. Ken Calvert, whose 41st District that he has represented for more than 30 years in Riverside County will be redrawn eastward into Los Angeles County. On Wednesday he said he would run for reelection in the neighboring 40th District, setting up an intraparty clash with GOP incumbent Rep. Young Kim.

Read more here.

A new California law lets mid-rise apartments near major transit stops in eight large counties. CalMatters’ Ben Christopher and video strategy director Robert Meeks have a video segment on what this overhaul of local zoning means for the state’s biggest metro areas as part of our partnership with PBS SoCal. Watch it here.

SoCalMatters airs at 5:58 p.m. weekdays on PBS SoCal.