In his second term, President Trump has done many things by Executive Order and within the law, the phrase emergency powers act has often been used. In the past, Presidents had to go through the House and Senate to pass bills and even though President Trump’s party has a majority in each of the legislative body he has gone around them. Time will tell what happens if the Democrats ever have a President, will he or she be able to do the same thing? President Trump’s big economic push has been tariffs. Whether you think they are good or bad, one has to ask is there really an emergency on a broad tariff policy?

In an article by Andrew Chung of Reuters, the US Supreme Court agreed to take up the case the Justice Department appeal of a lower court’s ruling that President Trump overstepped his authority in imposing most of his tariffs under a federal law meant for emergencies.

The Supreme Court begins a nine-month term on October 6 and for the Court, they placed the court on a fast track, scheduling oral arguments for the 1st week of November. A decision will be made before December.

The Act President Trump has used is called the International Emergency Economic Powers Act or IEEPA. The tariffs remain in effect during the appeal to the Supreme Court.

The question is who can impose tariffs Congress or the President? Since the IEEPA was passed in 1977, it has never been used to impose tariffs. It has been used to impose sanctions of governments.

Linking to dividend paying stocks, some of these companies will have operations outside the borders of the US. Many of them will have used existing supply systems to lower costs to maintain margins to make profits to reward shareholders. If you own manufacturing or retail shares, you have likely heard or seen the CFO say tariffs are making an impact on our business. If things change at the Supreme Court those stocks will likely get a bounce in stock price, however it does through concerns elsewhere in the economic system or President Trump will likely have to raise taxes.

There are more questions than answers, till the next time – to raising questions.