Vermont
The Supreme Court hears challenges to Trump’s tariffs with Vermont ties – VTDigger
This story is based on stories by Violet Jira published on Nov. 5, 2025 by NOTUS, one before and one after the oral arguments.
The U.S. Supreme Court heard arguments Wednesday related to the legality of President Donald Trump’s use of tariffs in a case that won’t just be deciding the fate of his trade policy, but also could redefine the limits of presidential economic power.
The hearing involved appeals in a pair of cases that challenge the Trump administration’s use of the International Emergency Economic Powers Act, including one with Vermont ties. Trump has used the law to bypass procedural norms and place extensive tariffs on enemies and trading partners alike without authorization from Congress.
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One of the cases includes Terry Precision Cycling, or Terry Cycling, a women’s cycling apparel company, as one of five small business plaintiffs. The group sued Trump and his administration in the U.S. Court of International Trade in April. In May, a panel of three federal judges struck down most of the president’s tariffs. The U.S. Court of Appeals for the Federal Circuit also largely backed the plaintiffs. The case was combined with another brought by private organizations impacted by the tariffs in Wednesday’s arguments in the Supreme Court.
The court also heard from a representative of 12 attorneys general, including Vermont Attorney General Charity Clark, who sued on similar grounds.
During the arguments, Solicitor General D. John Sauer defended the Trump administration’s actions — sometimes by contradicting the president.
Sauer faced a slew of skeptical inquiries from the justices who seemed to take issue with many of the Trump administration’s arguments, including that the president has broad authority to respond to international emergencies, Congress delegated the presidency this power, and tariffs are not taxes.
Since the Constitution gives Congress the power to tax, the claim that tariffs are not a tax was central to Sauer’s argument, despite the fact that the president has framed them as revenue-raising.
“We don’t contend that what’s being exercised here is the power to tax,” Sauer said. “It’s the power to regulate foreign commerce. These are regulatory tariffs. They are not revenue raising tariffs.”
Trump regularly says tariffs are making the country richer. And earlier this year, the White House floated using tariffs as a revenue raiser to offset the cost of the One Big Beautiful Bill Act.
Justice Sonia Sotomayor, who spoke recently at the University of Vermont, made clear that she didn’t buy Sauer’s argument on tariffs versus taxes.
“You say tariffs are not taxes, but that’s exactly what they are,” she said. “They’re generating money from American citizens, revenue.”
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Burlington-based Terry Cycling , a women’s cycling apparel company, joined four other small businesses to sue President Donald Trump over his tariff policy. Courtesy photo.
‘Simply implausible’
How the justices decide the case will have major implications not just for Trump’s agenda but for how much unilateral power presidents have to regulate commerce.
During the arguments, Justice Neil Gorsuch leaned heavily into the question of congressional authority. He seemed to take issue with the fact that it would be difficult for Congress to reclaim that authority should the Supreme Court give the Trump administration what it was asking for.
“Congress, as a practical matter, can’t get this power back once it’s handed it over to the president. It’s a one way ratchet toward the gradual but continual accretion of power in the executive branch and away from the people’s elected representatives,” he argued.
Justice Amy Coney Barrett seemed skeptical of the scope of the reciprocal tariffs Trump has placed on dozens of countries, allies and trading partners alike.
“Is it your contention that every country needed to be tariffed because of threats to the defense and industrial base? I mean, Spain, France? I mean, I could see it with some countries, but explain to me why as many countries needed to be subject to the reciprocal tariff policy as are,” she asked.
The small businesses were represented by attorney Neal Katyal. He argued that tariffs are, in fact, a tax, and that the Trump administration was exceeding the authority Congress intended to give to the executive branch when it passed the International Emergency Economic Powers Act.
“It’s simply implausible that in enacting IEEPA, Congress handed the president the power to overhaul the entire tariff system and the American economy in the process, allowing him to set and reset tariffs on any and every product from any and every country at any and all times,” Katyal said.
“And as Justices Gorsuch and Barrett just said, this is a one-way ratchet,” he continued. “We will never get this power back if the government wins this case. What president wouldn’t veto legislation to rein this power in and pull out the tariff power?”
The Supreme Court has until the end of its term next summer to make a decision, but the case has so far been on an expedited track, leading some experienced court watchers to expect a decision before the end of the year.
Other routes for tariffs
The White House has projected confidence in its ability to win the case — press secretary Karoline Leavitt said officials believe the Supreme Court will rule in their favor. Still, contingency plans have long been in the works.
“The White House is always preparing for plan B,” she said at a briefing. “It would be imprudent of the president’s advisers not to prepare for such a situation. With that said, we are 100% confident in the president and his team’s legal argument and the merits of the law in this case, and we remain optimistic that the Supreme Court is going to do the right thing. The importance of this case cannot be overstated.”
Trump has used the threat of tariffs in matters far beyond trade. The administration used a tariff investigation to pressure Brazil over its decision to prosecute former President Jair Bolsonaro. Trump attempted to use trade negotiations to stop Canada from backing Palestinian statehood. The threat of steep tariffs has been an essential leverage point in his peace negotiations between countries like India and Pakistan, as well as Russia and Ukraine.
The Supreme Court’s decision could stymie all of this.
Administration officials have indicated that even if they lose the case, they would find another way to levy tariffs.
There are multiple legal avenues to enact tariffs. Top Trump trade adviser Peter Navarro has signaled the administration was considering use of Section 122 and then Section 301 of the Trade Act of 1974, if use of the International Emergency Economic Powers Act is deemed unlawful.
Multiple trade experts NOTUS spoke to said this would be the most plausible course of action for Trump to keep his tariffs alive if the court rules against him.
Peter Harrell, who served as senior director for international economics and competitiveness in the Biden White House, said “the most obvious choice” for the White House to temporarily maintain tariffs would be to invoke Section 122. That would allow tariffs of up to 15% for as long as 150 days on countries whose trade with the U.S. is unjustifiably imbalanced.
“That, to me, looks like the sort of obvious, immediate stop gap they could pull to keep many of their tariffs in place for a couple of months while they figure out what the longer term plan is,” he said.
Section 301 of the trade act allows an administration to launch investigations into specific countries and implement tariffs based on the results of that investigation. There are already active Section 301 investigations into China, Brazil and Nicaragua; the latter two were started under the administration of President Joe Biden. The Trump administration could begin more of them, but the investigations take months and again open the administration up to the possibility of lawsuits.
Over the past few months, the Trump administration has expanded its use of Section 232 of the Trade Expansion Act of 1962, which allows him to put restrictions on the import of certain goods if they are found after an investigation to threaten national security.
But none of these powers is as expansive as the International Economic Emergency Powers Act, which the Trump administration has used to enact crushing tariffs with the stroke of a pen.
The International Economic Emergency Powers Act “only requires a finding of a national emergency, which is a more unilateral power within the president to make that determination,” said Everett Eissenstat, a partner at Squire Patton Boggs who represented the Trump administration on international trade matters as deputy director of the National Economic Council during Trump’s first term. “There’s no investigation, there’s no congressional consultation, it’s just a declaration of emergency, and that unleashes the power to regulate commerce, regulate importation.”
He added that there “were certainly more limitations” on Section 301 and Section 232.
If the Supreme Court were to rule in the Trump administration’s favor, it’s possible that the ruling wouldn’t just give the administration the legal go-ahead on current tariff policy, but open the door for the International Economic Emergency Powers Act to be used even more broadly than Trump is currently using it.
For the importers, business owners, consumers and taxpayers who are impacted by the president’s trade and tariff policy, a decision from the Supreme Court in either direction is unlikely to offer significant relief from the pressures of the Trump tariff economy.
“Unfortunately, if you’re a business, you can celebrate a Supreme Court win if that’s the way it goes, but you’re not going to be off the hook,” Riley said. “Trump will continue to impose tariffs, continue to impose costs on Americans, but he just won’t have the unlimited authority that he’ll have if the Supreme Court allows the IEEPA tariffs to remain in place.”
Two empty seats
The leaders of both the Vermont House and Senate will not be running for reelection. So who will fill their shoes?
Senate Majority Leader Kesha Ram Hinsdale, D-Chittenden Southeast, said she’s running for Senate president pro tempore.
Ram Hinsdale has served in the legislature for 14 years and is the first woman of color to serve in the Senate.
“I have seen so many types of leadership, so many tools in the toolbox that you can use to move people in the same direction,” she said.
While spending more than a decade in the Legislature, Ram Hinsdale said she’s lived through many crises and charted the state’s path through them. She was a lawmaker during the Great Recession, the Covid-19 pandemic and two years of record breaking floods.
With multiple long-serving legislators retiring this year, Ram Hinsdale said she thinks she will bring needed institutional knowledge and experience, along with a willingness to rally new people.
Along with Ram Hinsdale, lawmakers have eyed Sen. Andrew Perchlik, D/P-Washington, who currently chairs the Senate Appropriations Committee, as a future pro tem.
Perchlik said Friday that he’s considering running for the position, though he didn’t want to definitively say until after the primary election in August.
“I’ve been approached by many senators asking me to do it,” Perchlik said. And he said he thinks it makes sense, given his past leadership roles as the whip for the majority party in the Senate and his former role as chair of the Senate Transportation Committee.
Perchlik has chaired the appropriations committee for the last two years, receiving bills from every committee and managing the state’s funds. That role has allowed him to work with lawmakers across the chamber and different parts of the executive branch, he said.
“You get a really broad picture of the entire government,” Perchlik said.
Just a day after House Speaker Jill Krowinski, D-Burlington, surprisingly announced that she won’t seek reelection, a handful of likely Democrats to succeed her said they were mum on their plans to run for speaker.
House Majority Leader Rep. Lori Houghton, D-Essex Junction, said it’s too soon to say if she will run, though she didn’t rule out the possibility.
“She just announced yesterday,” Houghton said, adding that she’s trying to focus on finishing out the session.
Rep. Emilie Kornheiser, D-Brattleboro, who chairs the House Ways and Means Committee, similarly said she’s considering running, but right now she’s focused on finishing legislative work, too.
Rep. Charlie Kimbell, D-Woodstock, said, “I haven’t made up my mind about it.” Kimbell previously ran for speaker in 2020 before dropping out of the race to endorse Krowinski. He also ran for lieutenant governor in 2022 before losing in the primary.
Rep. Laura Sibilia, I-Dover, who challenged Krowinski for speaker at the beginning of 2025, said, “I have not ruled it out.”
In the know
At the eleventh hour, lawmakers let the law enforcement masking bill supported by immigrant rights activists, S.208, die.
“I’m very disappointed with what has happened to S.208,” said Sen. Nader Hashim, D-Windham, the bill’s lead sponsor, on the Senate floor Friday.
The decision comes after a committee of lawmakers from the House and Senate agreed on a version of the bill that would have largely banned all law enforcement operating in the state — including federal agents — from wearing masks or failing to visibly identify themselves.
Committee members decided to make that provision of the bill go into effect March 15, 2027, rather than upon passage, reasoning it would give the state time to see how similar laws in other states play out in the courts.
The bill the committee approved would have given the Vermont attorney general’s office the responsibility to enforce it, bringing a civil lawsuit if officers violated the law.
Upon passage, the bill also would have required a Vermont law enforcement board to create a statewide policy on masking and identification for local and state police.
All members of the conference committee signed on to support the newest version of the bill except the committee’s lone Republican appointee, Sen. Chris Mattos, R-Chittenden North. During a committee meeting Thursday, Mattos said he was unsure he could support the bill because the committee hadn’t heard from the attorney general’s office about whether it was on board to enforce the policy.
After the conference committee approved the bill, it sat on the House’s calendar Friday but was not taken up on the House floor.
For the bill to pass before adjournment, lawmakers would have needed three-quarters of the House to suspend legislative rules, which would allow lawmakers to speed up the legislative process. That would have required Republican support.
Lawmakers on the Senate floor decided to adjourn around 5:50 p.m., giving up on the idea of receiving the bill from the House.
“It was barely a year ago that I watched Mohsen Mahdawi be taken by masked men in unmarked vehicles,” said Sen. Becca White, D-Windsor, expressing her frustration that the bill didn’t pass.
— Charlotte Oliver
Lawmakers on the House floor Friday made a failed attempt to override the governor’s veto of a bill, H.727, that would have set strict guardrails for any future huge data centers in Vermont.
The bill contained provisions that would prevent any large data centers in Vermont from increasing electricity costs for average ratepayers. The bill also contained provisions that would restrict how data centers discharge chemicals and use water to stay cool in an attempt to limit environmental impacts.
Gov. Phil Scott vetoed the bill Thursday. In his letter to lawmakers, Scott said he believes Vermont’s existing regulations would prevent harmful impacts from data centers.
Lawmakers voted 83-52 in favor of overriding the veto, but they needed 90 votes to do so.
— Charlotte Oliver
On the move
Vermont’s House and Senate budget writers reached a deal Thursday night on a state spending package for the upcoming fiscal year, which starts in July.
Agreement on the budget bill, H.951, came with likely just a day left in this year’s legislative session. Overall, the joint House and Senate conference committee’s version of the budget totals $9.38 billion, close to the amount of spending Gov. Phil Scott proposed at the start of the session in January.
The bill was expected to get a final sign-off on the House floor Friday after weeks of both public and closed-door negotiations. The conference committee signed off on the bill around 11 p.m. Thursday.
Among the last pieces of the nearly 150-page legislation to get resolved in the committee was a controversial plan to take money out of a state-run college scholarship fund to help pay for a long-stalled athletic complex at the University of Vermont instead. The fund, called the Higher Education Endowment Trust Fund, saw a historic infusion of cash last year from Vermont’s tax on the estates of high-wealth individuals.
Read the full story here.
— Shaun Robinson
Say cheese
“A crime has been committed, and we do need justice by the end of the day.”
Rep. Conor Casey, D-Montpelier, told his colleagues on the floor Friday morning that he was set on getting to the bottom of a putrid predicament that has been vexing him and other members of the House Corrections and Institutions Committee for weeks.
As he told it: Casey walked into the committee room a couple of months ago to “a rancid smell.” After weeks of searching high and low, he realized that the desks making up the committee’s table had small drawers underneath that he had never noticed before. He opened his drawer, only to find “a moldy, disgusting, offensive glob of cheese,” with a note that read, “say cheese.”
Casey is well known around the Statehouse for pulling pranks on his colleagues, so the cheese may have been an effort to get back at him before he steps down from the House. He then pulled open the drawer of his seat-neighbor, Barre Town Republican Rep. Gina Galfetti, to find yet another glob of cheese.
“It was a bipartisan cheesing, Madam Speaker,” he exclaimed Friday.
If the person who lodged the offending dairy did not come forward by the end of the day, Casey said, he would subject his colleagues to a full recitation of James Joyce’s mammoth novel, “Ulysses,” on the floor. Coming from the man who recited part of a play he wrote during a floor session last year, that seemed far from an empty threat.
As of this newsletter’s deadline, at least, the mystery remained unsolved.
“The craven still hides in the shadows,” Casey wrote in a text. “But rest assured they will be brought to justice. The session may end, but my lust for vengeance will endure…”
— Shaun Robinson
Nearly 1,000 Vermont students will bring live jazz to downtown Burlington this June as part of the 2026 Discover Jazz Festival, with dozens of school ensembles scheduled to perform free concerts on Church Street.
According to a community announcement, 44 ensembles from 36 schools, representing 993 students from across Vermont, will take part in the festival’s 43rd year.
The student concerts are organized by The Flynn, which produces the Burlington Discover Jazz Festival and oversees its education and community programs. All student performances are free and open to the public.
Student performances highlight statewide participation
Participating schools span Vermont, including Chittenden, Franklin and Grand Isle counties, central Vermont, Addison County, Lamoille Valley, the Northeast Kingdom and southern Vermont, along with visiting ensembles from New York, according to the announcement.
Chittenden County schools listed include Burlington High School, Champlain Valley Union High School, Charlotte Central School, Colchester High School and Middle School, Edmunds Elementary and Middle schools, Essex High School and Middle School, South Burlington High School, Winooski Middle High School and Vermont Commons School, among others.
The student performances will take place during the Burlington Discover Jazz Festival, which runs June 3–7 and features free outdoor concerts alongside ticketed performances by internationally recognized artists curated by MacArthur fellow Jason Moran.
Featured collaboration includes Vermont Youth Orchestra musicians
A featured performance during the festival, “My Heart Sings: Jason Moran Plays Duke Ellington”, will include musicians from the Vermont Youth Orchestra Association jazz ensemble, according to the announcement.
The concert will also feature guest vocalist Rachel Ambaye, a South Burlington native studying with Moran at Berklee College of Music. Ambaye will join the student ensemble for a collaboration tied to one of the festival’s signature performances.
Flynn Executive Director Jay Wahl said in the announcement that bringing student musicians into the center of the festival highlights jazz as a living tradition shared across generations.
This story was created by Dave DeMille, ddemille@gannett.com, with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at cm.usatoday.com/ethical-conduct.
MONTPELIER, Vt. (WCAX) – Republican Gov. Phil Scott filed Thursday to seek a sixth term in office while the heads of both legislative chambers announced they will not run for reelection.
Thursday marked the deadline for candidates to get on the ballot for the August primary elections. For months, it has been unclear if Scott would run again.
“I don’t want to see anything move backwards; we need to keep pushing ahead,” Scott said.
Scott filed the necessary 500 signatures on Thursday. If he serves a sixth term, he would be the longest-serving consecutive governor in state history.
“It’s not easy work, it weighs on you, but at the end of the day, I feel the responsibility to stick this out,” Scott said.
The governor has won by larger margins each cycle. Potential Democratic challengers have waited to see whether Scott might step aside, providing a chance not to run against a popular incumbent.
Those who political observers speculated might be interested in the governor’s race included Democratic Attorney General Charity Clark and Treasurer Mike Pieciak. Both instead decided to seek reelection.
Pieciak told reporters he has experienced several personal tragedies this year and wants to continue with his office’s work. “It’s really been a year of reflection, and I think I’m excited about continuing this job that I enjoy,” Pieciak said.
Scott will face an opponent in November. Democrats Aly Richards and Amanda Janoo will face off in the August primary.
Three other Democrats, Molly Gray, Ryan McLaren, and Esther Charlestin, will face off for the Democratic nomination for lieutenant governor and the chance to challenge incumbent Republican John Rodgers in November.
House Speaker Jill Krowinski received a standing ovation from House lawmakers as she announced she will not seek reelection, joining Senate President Phil Baruth.
“The next group of leaders will do a great job continuing on with this work. I wouldn’t be leaving if I didn’t think that we had the right people in places to do this work,” Krowinski said.
That means there will be fresh leadership in the House and Senate next legislative session.
And there is competition in the race for Congress. Republicans Gerald Malloy and Mark Coester will face off in the GOP primary to determine who will face Congresswoman Becca Balint in November.
“To deliver results for Vermont. They are tired of the constant complaining and angry rhetoric,” Malloy said.
There are at least three dozen state House and Senate races that will see fresh faces as another large contingent of lawmakers steps back.
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