SCOTUS Tariff Ruling
From the Ag Information Network, I’m Bob Larson. A decision from the Supreme Court is expected any day regarding the legality of President Trump’s tariff policy, and that decision could have immense implications.
Arlan Suderman, Chief Commodities Economist for StoneX Group, says the Trump Administration does have a “Plan B” waiting should the high court not rule in its favor …
SUDERMAN … “Other legal means for implementing the tariffs, but they're much more cumbersome and time consuming, and so he wouldn't be able to use it as a threat in negotiations as much, and so we would lose some negotiating power from that.”
Suderman says where we would see that most is with China …
SUDERMAN … “China backed off on their rare earth minerals restrictions because of the threat of 100% tariff. That gets taken away with, potentially, with an adverse ruling, and that would allow China to fully pick the winners and losers in the world on manufacturing and on defense weapons. And in fact, the White House issued summarizing results of a study detailing out how dependent we are for not only manufacturing and consumer goods, from cell phones to pickup trucks, but to defense weapons, and how critically short we are for the rare earth minerals for defense weapons to being a national security issue.”
Suderman says agriculture could feel the impact most directly through imported proteins.
Commodities economist Arlan Suderman.
