The Supreme Court is hearing arguments against Trump’s tariffs

By a CalMatters economic reporter Levi Sumagasai:

The US Supreme Court considered on Wednesday whether President Donald Trump exceeded his authority in imposing sweeping tariffs on imports from much 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 its tariffs. Some justices have expressed skepticism about the president’s ability to act unilaterally on tariffs.

• Chief Justice John Roberts: “Taxing Americans … has always been the primary power of Congress. So to have the president’s foreign affairs power override that, that primary power of Congress seems to me to be something of at least a neutralization between the two branches, the executive branch and the legislative branch.”

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

• California Attorney General Rob Bontabefore the Supreme Court after arguments Wednesday: “Americans deserve not to be victimized by illegal taxes. Tariffs are taxes.”

The Consumer Technology Association, whose members include some of California’s largest technology companies, filed a joint brief with the US Chamber of Commerce. The president’s tariffs “cause irreparable harm” to members of the groups and in some cases “threaten their very existence,” they said in the brief.

If the Supreme Court rules that the president does not have broad tariff authority under the law it cites, the U.S. government would have to issue approximately $90 billion on refunds to businesses that paid the tariffs – which Judge Amy Coney Barrett speculated would be a “complete mess”.

For years, Gov. Gavin Newsom has dismissed speculation that he is eyeing the presidency, an ambition that has appeared to fail at many points during his administration. But Proposition 50 catapulted the governor back onto the national stage — and potentially as a front-runner for Democratic nomination for president.

As Jeanne Kuang of CalMatters explains, Newsom’s national prominence wasn’t always a guarantee, despite his efforts to take on Republicans outside of California, such as debates them on Fox News. In 2023, he urged other countries to follow his example of a gun control constitutional amendmentalthough no one heeded the call.

But after Prop. 50 Newsom’s national standing rose: This year, for the first time, he admitted that he is is considering a possible run for president. The tens of thousands of new donors across the country who backed his ballot measure can also now serve as a list of backers for a potential campaign. And in his victory speech at Prop. 50 on Tuesday, he urged other Democratic-led states to step up their own redistricting efforts — and essentially follow his lead.

• Lake CelindaDemocratic pollster and strategist: “It was a really unconventional idea, implemented well, implemented quickly, it brought the party together. And it also showed that he’s tough.”

Read more here.

Speaking of Prop. 50, Maya C. Miller of CalMatters dives into the notable takeaways from his huge win and what next for california.

Hours after Proposition 50 was passed, the California Republican Party said it plans to sue Proposition 50, arguing that it is unconstitutional because it carves out districts that favor Latino voters at the expense of other ethnic groups. The US Supreme Court may also issue a pending ruling to give Republicans have a big advantage in the South.

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

That includes Congressman Ken Calvert, whose 41st district, which he 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 re-election in the neighboring 40th District, setting up an intra-party showdown with GOP incumbent Representative Young Kim.

Read more here.