Rupee, Petrol, Smartphones: What make-or-break Trump 2.0 tariff hearing could mean for consumers

The Donald Trump 2.0 administration faces tough questions about its trade tariffs as nine justices hear oral arguments in the US Supreme Court on Wednesday, November 5. The case is an amalgamation of concerns raised by businesses and 12 US states arguing that the 47th American president overstepped his authority by using an emergency powers law to impose the duties that have shaken the global markets. The court will consider whether the 1977 International Emergency Economic Powers Act (IEEPA) authorises the US president to impose broad tariffs.

Here are key things to know about the November 5 hearing:

Trump Tariff Hearing in US Supreme Court: Who will appear?

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Lawyers from both sides will participate in the 80-minute oral hearing in the 'Learning Resources vs Trump' matter, scheduled to take place from 8:30 pm to 9:50 pm India time.

What to expect?

A ruling against the Trump administration could invalidate major chunks of the tariffs, potentially requiring the US government to refund tens of billions of dollars in customs revenue already collected.

The Trump tariffs have remained in effect pending the Supreme Court's decision.

How has the Trump administration described the case?

While President Trump has described the upcoming case as "literally life or death for our Country", US Treasury Secretary Scott Bessent has expressed confidence that the administration will prevail.

Trump took to social network Truth Social, once again, to share his thoughts on the upcomnig event. He wrote on Tuesday: "Tomorrow’s United States Supreme Court case is, literally, LIFE OR DEATH for our Country. With a Victory, we have tremendous, but fair, Financial and National Security. Without it, we are virtually defenseless against other Countries who have, for years, taken advantage of us."

"Our Stock Market is consistently hitting Record Highs, and our Country has never been more respected than it is right now. A big part of this is the Economic Security created by Tariffs, and the Deals that we have negotiated because of them. Thank you for your attention to this matter!" he added.

Trump Tariff Case | Will a verdict be announced on the same day?

No. A verdict is unlikely to be announced on the same day. However, remarks and observations will be in focus across the globe, as the hearing comes at a time when the US has imposed tariffs on many of its trading partners, even as trade deal negotiations continue with some of them.

A final judgment is expected by March-June next year.

Here are a few possible outcomes in the matter, according to Zee Business research:

If Trump wins:

• Tariffs of 10-145 per cent remain in place
• Trump 2.0 administration could retain around $4 trillion in revenue

If Trump loses:

• US may need to issue $90-120 billion in refunds
• Imports into the US become cheaper, mainly:
  • Petrol
  • Mobile phones
  • Clothing

• Rupee strengthens vs dollar
• Stock markets may rally