Trump's Greenland tariff threats could be upended by Supreme Court decision

Trade attorneys archer CNBC that the looming U.S. Supreme Court ruling connected President Donald Trump's tariffs could interaction Trump's threats to levy new tariffs connected NATO members implicit the contented of Greenland's sovereignty.

The targeted tariff threats made by Trump implicit the play would apt remainder connected the aforesaid ineligible authorization nether the International Emergency Economic Powers Act (IEEPA) to beryllium decided by the Supreme Court.

"Although the president hasn't specified if these tariffs would beryllium IEEPA-based, the U.S. Supreme Court determination connected IEEPA would apt impact the result of the threatened Greenland tariffs," said Michael Lowell, spouse and seat of the Global Regulatory Enforcement Group astatine Reed Smith.

"Similar to the Brazil tariffs; if the Supreme Court rules IEEPA doesn't springiness the president tariff power, past these tariffs being threatened connected NATO members would beryllium illegal," Lowell said.

Trump announced Saturday that if a woody is not reached allowing Washington to get Greenland, the 8 European countries would look expanding tariffs, starting astatine 10% connected Feb. 1 and rising to 25% connected June 1.

The Court's latest batch of decisions issued Tuesday greeting did not see the tariffs case.

In the lawsuit that the Court overturns the tariffs, caller ineligible measures whitethorn beryllium request to beryllium taken by companies from wrong the NATO bloc that would beryllium successful the presumption of having to wage the threatened tariffs. "It whitethorn inactive beryllium indispensable for companies that import from those countries to bring suit to enforce," continued Lowell said. But helium added, "that would beryllium a speedy suit since the instrumentality would beryllium wide by the ruling."

Treasury Secretary Scott Bessent on Sunday said it's "very unlikely" that the Supreme Court will overturn Trump's usage of exigency powers to impose tariffs, with a imaginable determination from the tribunal looming arsenic aboriginal arsenic this week. Even if the medication loses, Trump officials person said that caller tariffs volition spell into effect immediately.

If Trump's IEEPA authorization were taken away, 1 of the measures that the medication whitethorn crook to is Section 232 of the Trade Expansion Act of 1962. Trade attorneys accidental the president could usage the precocious completed Section 232 probe on captious minerals to levy tariffs. Greenland is simply a mineral-rich land that is simply a semi-autonomous territory of Denmark.

In the January proclamation from the White House, Trump invoked Section 232 authorities to nonstop the dialog of agreements with overseas nations to "ensure the United States has capable captious mineral supplies and to mitigate the proviso concatenation vulnerabilities arsenic rapidly arsenic possible."

If negotiations bash not work, the proclamation states "it whitethorn beryllium due to enforce import restrictions, specified arsenic tariffs, if satisfactory agreements are not reached successful a timely manner."

While caller Section 232 actions from Trump included the contiguous imposition of tariffs connected products, successful the latest Section 232 argumentation connected captious minerals the connection states that the enforcement subdivision of the authorities reserves the close for the president to enforce tariffs.

"Regardless of the IEEPA outcome, Section 232 remains a almighty and unaffected tool that the medication volition apt proceed to deploy for further tariffs. Importantly, we enactment that these tariffs bash not stack connected apical of IEEPA tariffs," TD Cowen analysts wrote successful a caller enactment to clients.