In Oral arguments on Nov, 5, 2025, the issue was the power of the Trump administration to set tariffs on many products, from many countries for an unsopeofied amunt of time. Congress has delegated some tariff powers to the Executive branch over the decades. But, Pres. Trump claims a statute, known as the International Emergency Economic Powers Act, provides the Executive branch with an unlimited sort of tariff authority. This is remarkable, since the IEEP Act does not actually mention the word “tariff.”
It is not a core issue to the case, but it is important. The United States Solicitor General John Sauer had to know this would come up: who ultimately pays the tariffs? Do American consumers ultimately pay the tariff or does some combination of foreign countries, businesses, etc. pay the tariff? It is not a core issue, but who pays the tariff is important to the case. If U.S. citizens pay the tariff, then the tariff is a tax. In Oral arguments on Nov. 5, a few of the Justices referred to the tariffs as a tax. That is important, because Congress can delegate such a power only if it does so very clearly.
Are the Tariffs a Tax?
Asking a lengthy question, Justice Roberts referred to the tariffs as a tax. Solicitor Sauer disagreed. It was just a passing comment, but Justice Roberts stopped mid-sentence. Justice Roberts then switched to the tax issue. He noted that the vehicle of these tariffs is an imposition of taxes on Americans – which is a core power of Congress (and therefore, not easily delegable to the Executive branch). Sauer replied that it has not been “empirically” shown that Americans are bearing these tariffs. Fine. Justice Roberts asks who does pay for the tariffs?
Solicitor Sauer then obfuscated, He said it would depend on the contract between the country and the importer. Sometimes the importer would pay the tariff, sometimes the foreign producer would pay. It could be a wholly owned American subsidiary of a foreign corporation. It would be allocated.
Justice Roberts then points out that it has been suggested that the tariffs are decreasing the budget deficit – which suggests it is a revenue source. Sauer then responds that yes, there are collateral effects of tariffs. Justice Roberts did not respond at that point. Most judges would not. They just want to hear how the litigant handles the question.
In that moment, Solicitor Sauer lost his credibility. Simply to appease his ultimate client, Pres. Trump, he refused to acknowledge on the record that tariffs act as a tax. They are tax in every way but name. The American consumer will pay a large portion of the tariffs. And, Solicitor Sauer, even though experienced, committed a grievous sin in appellate advocacy: do not BS the Judge. We learned in law school to never avoid a question and never, ever avoid an obvious fact.
It was an embarrassing moment for Solicitor Sauer. Before the highest court in the land, he implicitly acknowledged that his accepted a case with a known, insurmountable weakness. He might well have worn a sign on his chest: “My case is a loser.” He way yet win on other grounds. But, when a lawyer obfuscates in court, he implicitly admits he does not believe in his case. That its why lawyers reject cases. Even Solicitors of the U.S. have the right to reject a case.
See audio recording in Learning Resources v. Trump, No. 24-1287 here.






