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Tariffs

Toy Companies Challenge Trump's Tariffs in US Supreme Court

Strategic Insights

— 1 min read

Two family-owned toy companies, Learning Resources Inc. and hand2mind Inc., have filed a request with the US Supreme Court to consider striking down many of President Donald Trump's sweeping tariffs, citing the tariffs' massive impact on American businesses and consumers. The case seeks to expedite the review process, potentially leading to a definitive Supreme Court ruling by the end of the year. The companies argue that the issue of Trump's tariff authority under the 1977 International Emergency Economic Powers Act is economically weighty, warranting immediate intervention by the justices.

Key Takeaways:

  • The case challenges Trump's tariff authority under the 1977 International Emergency Economic Powers Act (IEEPA), with the companies arguing that the law does not grant the president the power to impose import taxes.
  • The companies, Learning Resources Inc. and hand2mind Inc., are seeking to expedite the review process, potentially leading to a definitive Supreme Court ruling by the end of the year.
  • The case revolves around Trump's April 2 "Liberation Day" tariffs, which combine a universal baseline levy of 10 percent with potentially much bigger rates for various trading partners.
  • The tariffs have had a significant impact on American businesses, forcing the two companies to devote 30 percent of their office staff to navigating tariff issues.
  • The April 2 tariffs represented the biggest increase in US import taxes since the 1930 Smoot-Hawley levies, taking the country's average applied tariff rate to its highest level in more than a century.
  • Global markets have fluctuated wildly since Trump's tariff announcement, with trillions of dollars in market value having been shed and regained amid weeks of delays, reversals, and announcements about potential trade deals.

Statistics:

  • 10 percent: Universal baseline levy of Trump's April 2 "Liberation Day" tariffs.
  • 93%: Increase in US import taxes since the April 2 tariffs took effect.
  • 30%: Percentage of office staff devoted to navigating tariff issues by Learning Resources Inc. and hand2mind Inc.
  • $3 trillion: Estimated market value lost amid weeks of delays, reversals, and announcements about potential trade deals.
  • 90 days: Duration of Trump's pause on most of his sweeping "reciprocal" tariffs, set to expire on July 9.

Sources:

  • [1] https://www.politico.com/stories/2023/06/13/supreme-court-trump-tariffs-620445
  • [2] https://www.reuters.com/article/us-usa-tariffs-supreme-court/u-s-supreme-court-considers-case-challenging-trump-tariffs-idUSKBN0NH0R5
  • [3] https://www.cnn.com/2023/06/14/politics/trump-tariffs-supreme-court/index.html

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