Sen. John Kennedy said the Supreme Court’s recent decision limiting the scope of President Donald Trump’s tariff authority does not spell the end of the administration’s trade strategy and suggested that how the federal government handles the billions already collected could have major economic and political consequences.
During an exchange with commentator Charlie Hurt, Kennedy addressed the impact of the ruling and the future of tariff policy, emphasizing that significant revenue has already been generated.
“How can I put this? He believes in being a bear, and he thinks if you’re going to be a bear, a bear be a grizzly,” Kennedy said, referring to President Trump’s negotiating style.
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“And I don’t expect Western civilization to end here, and I don’t expect the president, whether you agree with him or not, to back up on tariffs,” he added.
Kennedy said the more pressing issue involves the funds collected under the tariff program.
“The most interesting question is, what do we do with all this money?” Kennedy said.
“We’ve got between $150 and $400 billion in tariffs collected. That money’s not in other countries. It’s here,” he continued.
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Kennedy noted that some Democrats have argued the money should be returned.
“My Democratic colleagues are saying, Oh, give it back. Give it back,” he said.
“Well, they’re better, my democratic people better be careful what they ask for, because if he, if he, if he, if he, if he gives back $300 billion worth of tariff money to the to the business community in America, this economy is going to roar, man, and the entire and the midterms are only a few months off,” Kennedy said.
Hurt raised the historical context of tariffs, noting that before the federal income tax, tariff revenue funded much of the government.
“So of course, before we had the infernal income tax and the federal income tax, all our entire federal government was largely run on those tariffs,” Hurt said.
“And people today love to point out that, oh no, you couldn’t do that with the federal government today. What do you say to those people?” he asked.
Kennedy responded by referencing constitutional authority and the limits outlined by the Court.
“Well, this is what I say. One of the people on ahead made the point Article One of the Constitution is pretty clear, tariff authority presides with Congress now Congress, on occasion, has shared that tariff authority with the executive branch,” Kennedy said.
“The Supreme Court today said we didn’t share as much tariff authority with the President as he said we shared with him in the IEEPA statute, so he can amend that statute, right?” he continued.
Kennedy argued that the President acted within the leverage he believed he had at the time.
“But my point is, in the meantime, he didn’t wait around for a Supreme Court opinion, right? He used the leverage from IEEPA to negotiate trade agreements,” Kennedy said.
“I don’t agree with everything he’s done on trade, but if I’m, if I’m sitting there in the President’s shoes, I’m going to take my win right,” he added.
“And that’s why I say my views are, I’m going to take my win right. This is not a total defeat,” Kennedy said.
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