The White House is quietly preparing a backup plan for President Trump’s tariffs, as the US Supreme Court is set to decide whether he had the authority to issue them in the first place. Bloomberg reports that the Commerce Department and the Office of the US Trade Representative have considered alternate plans in the event the court rules against the administration.
The replacement plans, which may face their own legal challenges, are a sign the White House is getting ready behind the scenes for SCOTUS to rule against the tariffs, even as the president remains optimistic publicly. Trump on Monday claimed the “full benefit” of tariff policies would take effect soon, arguing that foreign buyers who stockpiled inventory would be forced to buy more goods.
“Tariffs will be paid on everything they apply to, without avoidance, and the amounts payable to the USA will SKYROCKET,” Trump wrote.
The president invoked the International Emergency Economic Powers Act (IEEPA) to levy blanket tariffs on goods from other countries. But Congress is the branch of the US government with oversight of taxation and spending — not the president. It’s not clear when SCOTUS will make its ruling.
Meanwhile, Trump further expanded tariff breaks on Brazilian goods, part of moves to lower costs on some everyday goods as consumers grapple with price struggles. The move came a week after he signed a similar order more broadly reducing tariffs on goods including beef, tomatoes, coffee, and bananas.
The push to reduce food prices comes after electoral wins for Democrats across a number of key state and local races where candidates stressed affordability concerns. Trump has also in recent weeks floated the possibility of a tariff “dividend” for many Americans in the form of a $2,000 check.
Trump recently acknowledged that US consumers are “paying something” for his tariffs.
Read more: What Trump’s tariffs mean for the economy and your wallet
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Trump and Chinese leader Xi Jinping spoke Monday in their first talk since the countries agreed to a trade truce. Trump said he plans to visit China next spring, while Xi will reciprocate with a visit to the US later next year. (Read more: What are rare earth minerals, and why are they important?)
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The European Union said no deal to lower tariffs on steel and other products was expected during Monday’s discussions with the US.
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The US and Switzerland have agreed to a deal to lower tariffs on Swiss imports to 15%, from a 39% level that had shocked the country over the summer. Switzerland will invest $200 billion in the US, the White House said.
LIVE 82 updates
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Trump, Xi speak for first time since countries agreed to trade truce
President Trump and Chinese leader Xi Jinping spoke Monday for the first time since the US and China agreed to a trade truce. Though the call touched on trade issues, Bloomberg reports the focus was on China’s increased tensions with Japan over the self-governing island of Taiwan:
