Trump Tariffs Are a Sales Tax, Krugman Says

• The Supreme Court ruled 6-3 against Trump's IEEPA tariffs, stating he exceeded federal authority, but did not address tariff refunds.
• Krugman views tariffs as a sales tax on American consumers, increasing the cost of living and being slightly contractionary.
• While new tariffs could replace lost revenue, they would not grant the President the same broad discretion as IEEPA, and any consumer relief from the ruling may be short-lived if new tariffs are imposed.

Nobel laureate Paul Krugman discusses the Supreme Court's ruling against Trump-era tariffs imposed under the International Emergency Economic Powers Act (IEEPA). He argues that tariffs are essentially a sales tax on American consumers, leading to a higher cost of living and being slightly contractionary for the economy. The ruling limits the President's discretion in imposing tariffs, though new tariffs could still be implemented under different sections of trade law.