Trump's Tariff Policy Supreme Court 14th Ruling: Latest U.S. Economic Data Not Pessimistic

The U.S. Supreme Court is expected to announce the next batch of rulings on January 14th, with several major cases still under consideration, including the legality of President Trump's large-scale global tariff measures.

The U.S. Supreme Court did not issue a ruling on January 9th as expected regarding President Trump's comprehensive tariff policy worldwide, but only issued a ruling on a procedural case involving criminal proceedings. White House officials revealed that if the Supreme Court rejects the president's global tariffs, the government has a B plan that can immediately restore the tariffs.

It is well known that since Trump returned to the presidency in January 2025, he has implemented a series of major decisions. The ruling on Trump's tariff policy will have a significant impact on the global economy and has become one of the most closely watched cases before the U.S. Supreme Judicial Institution. This case will test the power of the president and whether the Supreme Court is willing to constrain Trump's decisions.

White House Officials: There is a B Plan, which can almost immediately restore tariffs

Kevin Hassett, the director of the National Economic Council, said on Friday that if the Supreme Court overturns the president's global tariffs, the Trump administration has prepared other powers to quickly reimpose tariffs. Hassett said, "We expect we will win, and even if we lose, we know we have other ways to achieve our goals." If the Supreme Court makes an adverse ruling, the government definitely has a backup plan that can "almost immediately restore tariffs."

Hassett revealed that senior officials from the Trump administration had held a high-level phone call on Thursday to discuss the backup plan if the Supreme Court's ruling was unfavorable. U.S. Trade Representative Jamieson Greer is expected to lead the implementation of the "B plan."

In the current cases submitted to the U.S. Supreme Court, the plaintiffs challenging the tariffs include businesses affected by the tariffs and 12 states, most of which are governed by Democrats.

The Trump administration is appealing the lower court's ruling that it overstepped its authority. In the trial held on November 5, 2025, both conservative and liberal justices seemed to question the legality of Trump invoking a 1977 law intended for national emergencies to implement tariffs.

Trump has consistently stated that tariffs have strengthened the U.S. economy, but he also issued a stern warning. On January 2nd this year, Trump posted on social media that if the Supreme Court rules the tariffs invalid, it would be a "heavy blow" to the United States. So far, the 2025 trade deficit data released is still 7.7% higher than the same period in 2024.

U.S. Commerce Department Data Are Not Pessimistic

Due to the government shutdown in October last year, trade data, like other economic data, was also suspended. However, the U.S. Department of Commerce released data on Thursday, January 8th, showing that six months after Trump imposed tariffs, the U.S. trade deficit reached the lowest monthly level since 2009, when the U.S. had just emerged from the financial crisis and the Great Recession.

Due to increased exports and decreased imports, the U.S. trade deficit in October was $29.4 billion, down 39% from September. Exports grew by 2.6%, while imports fell by 3.2%. So far, the 2025 trade deficit data released is still 7.7% higher than the same period in 2024.

According to another report released by the U.S. Bureau of Labor Statistics on Thursday, productivity in the third quarter increased by 4.9%. The increase in productivity helped reduce unit labor costs in the third quarter by 1.9%, far exceeding expectations. This indicates that the labor market does not pose an upward pressure on inflation.

Matthew Martin, a senior economist at Oxford Economics, said in the report: "The latest data show that companies are successfully creating more value with fewer workers, further substantiating the concept of 'Jobless Expansion.' Productivity will be key to determining economic growth and inflation dynamics. If tax cuts, deregulation, and technological advancements including artificial intelligence continue to accelerate productivity growth, economic growth can speed up without causing unnecessary inflation."

Despite weak hiring, data released by the U.S. Department of Labor on Thursday showed that the number of layoffs remained low.

As of the week ending January 3rd, the number of people filing for initial unemployment benefits in the U.S. was 208,000, with the four-week moving average dropping to the lowest level since April 27, 2024.

Source: rfi

Original: toutiao.com/article/1853933923268939/

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