In a landmark Supreme Court hearing this week, U.S. Trade Representative Jamieson Greer described the proceedings as the “Super Bowl of trade law,” as justices grilled both sides over the president’s authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The case holds significant implications for trade policy, national security, and potentially hundreds of billions of dollars in tariff revenue.
Greer, who attended the hearing, said the justices were “tough on both sides,” but noted that the plaintiffs’ argument — that the president could completely embargo trade but not slow it through tariffs — was “absurd.” He emphasized that the statutory language of the IEEPA is “incredibly broad,” allowing for regulation of imports, which historically includes tariffs.
Piper Sandler analysts had earlier warned that the Supreme Court might limit the president’s power to impose tariffs under emergency authority. When asked about contingency plans, Greer explained that there are multiple statutory avenues available for imposing tariffs, including Sections 112, 232, 301, and 338 of trade law. He argued that the IEEPA provides flexibility to respond to emergencies such as trade deficits and offshoring.
President Donald Trump, when questioned about a potential adverse ruling, stated that removing tariff authority would equate to undermining national security. “If they took away tariffs, they’ve taken away our national security,” he asserted.
Greer revealed that nearly $300 billion has been collected in tariffs this year, with around $100–200 billion under the reciprocal tariffs being challenged in court. Should the ruling go against the government, he said refunds might be issued to specific plaintiffs, while the Treasury would determine how to handle the rest.
Greer expects the Supreme Court to expedite the decision, possibly before the end of the year, given the case’s economic importance.
U.S.–China Trade Developments
Turning to China, Greer highlighted progress following President Trump’s meeting with Chinese President Xi Jinping and Treasury Secretary Scott Bessent’s discussions with Chinese counterparts. Beijing has begun easing retaliatory tariffs on U.S. agricultural goods — cutting soybean duties from 13% to 10% — and suspended certain export controls on rare earth minerals vital to global manufacturing.
According to Greer, the U.S. had three goals entering negotiations:
Restoring stability in U.S.–China trade relations,
Ensuring unimpeded flows of rare earth materials, and
Securing Chinese cooperation on fentanyl control.
In exchange, the U.S. paused new investigations related to port fees and export controls and reduced tariffs on Chinese goods by 10 percentage points, leaving overall tariffs at 45–50%.
Greer also noted that the U.S. temporarily halted the expansion of the “entities list” rule that would have automatically covered affiliates of sanctioned companies, calling it a procedural move affecting not just China but other nations as well.
Building Rare Earth Independence
Greer stressed that the U.S. and its allies are working to reshore rare earth mineral production and processing. “We’re reopening mothballed mines, exploring new deposits in the U.S. and Australia, and ensuring it’s economically feasible to process these minerals domestically,” he said.
He warned that China’s dominance in rare earths stems from past U.S. policy failures that outsourced production. “China isn’t just controlling the highest-tech products — it’s controlling the basic industrial inputs the world depends on,” he explained.
When asked whether Chinese companies should continue to access U.S. capital markets, Greer said President Trump prefers stability and mutual benefit over confrontation but acknowledged that Washington has “vast levers” to respond, including delisting Chinese firms or revisiting tax treaties.
Economic Impact of the Government Shutdown
As the government shutdown entered Day 37 — the longest in U.S. history — Greer voiced concern over its economic fallout, especially as the FAA announced plans to cut 10% of flights at 40 major airports due to air traffic controller shortages. “When transportation is curtailed because Democrats won’t open the government, there’s obviously an economic impact,” he said, urging bipartisan cooperation to reopen federal operations.
Transportation Secretary Sean Duffy earlier warned that safety could be compromised if controllers remain distracted by financial stress, while Frontier Airlines’ CEO advised passengers to buy backup tickets in case of flight cancellations.
Greer remained cautiously optimistic, saying that public frustration might pressure Democrats to negotiate a continuing resolution to fund the government. “At some point, the American people will get fed up — especially as the shutdown starts affecting daily life,” he said.
Expanding Trade Ties and Energy Exports
On trade diversification, Greer revealed that the Trump administration is advancing new agreements with Switzerland, which could boost pharmaceutical, aircraft, and gold refining industries. He also mentioned ongoing talks with Central American partners and strong progress with Asian nations.
Greer underscored the growing role of U.S. oil and gas in balancing global trade. “We’ve been offering countries the chance to buy U.S. liquefied natural gas and propane to help reduce trade deficits. It’s a win-win — great for our energy producers and for countries seeking affordable energy,” he explained.
However, infrastructure challenges persist. Despite the U.S. being a top natural gas producer, much of it is flared due to insufficient pipeline capacity. “We’re still working to expand our infrastructure so we can distribute energy effectively — even as demand surges from AI and data centers,” he noted.
Outlook
Jamieson Greer concluded that the administration’s trade and industrial policies aim to strengthen U.S. sovereignty and manufacturing resilience while maintaining global stability. “The president’s regulatory and trade platforms are about one thing — making it easier to produce, build, and grow right here in America,” he said.
