Connect with us

Economics

Abortion-pill foes get a chilly reception at the Supreme Court

Published

on

ANTI-ABORTION ACTIVISTS were thrilled when Donald Trump won the presidency in 2016. Mr Trump had promised to appoint justices who would “automatically” overturn Roe v Wade, the 1973 case that protected reproductive rights. Three appointments later, the Supreme Court did just that in Dobbs v Jackson Women’s Health Organisation. But two years on, an oral argument on March 26th concerning mifepristone—a medication used in 63% of abortions in America—bodes ill for those hoping the court will help them keep limiting access to abortion care. At least for now.

Food and Drug Administration v Alliance for Hippocratic Medicine concerns a challenge to mifepristone by a group of doctors who oppose abortion. They persuaded a lower-court judge to de-authorise the FDA’s approval of the drug in 2000 despite a safety record comparable to Tylenol (paracetamol) and penicillin. The Fifth Circuit Court of Appeals somewhat softened that slap in the agency’s face last August. But it blocked the FDA’s moves in 2016 and 2021 allowing mifepristone to be used later in pregnancy (through ten weeks) and to be sent through the mail with a remote prescription.

Erin Hawley, representing the plaintiffs, defended the pill restrictions in her first argument at the Supreme Court. With her husband, Senator Josh Hawley, watching from the public gallery, she told the justices that the FDA’s policy on mifepristone left her clients facing a “Hobson’s choice”. Forcing doctors either to stand by their beliefs or care for a woman who took abortion pills and wound up in the emergency room, Ms Hawley said, is “intolerable”. Yet she faced deeply sceptical questioning from justices across the ideological spectrum as to whether her clients had suffered a concrete injury—a prerequisite for bringing a lawsuit in the first place.

Colloquy about “standing”, or a lack thereof, consumed perhaps three-quarters of the 90-minute hearing. Justices Elena Kagan and Amy Coney Barrett teamed up to demonstrate that even Ms Hawley’s two exemplars—Dr Christina Francis and Dr Ingrid Skop—had not suffered a concrete injury. Dr Francis may have had a patient who needed surgical attention after a complication from taking mifepristone, but she never raised an objection to treating her, Justice Kagan pointed out. And as Justice Barrett noted, it was actually her partner who performed the procedure, not Dr Francis herself: “I don’t read either Skop or Francis” as having “ever participated” in ending the life of a fetus or embryo.

The Alliance offered an alternative account of why the Alliance may have the right to sue—a theory known as “associational standing”. This is when an organisation brings a lawsuit based on harm to the organisation itself or to its members. Justice Clarence Thomas noted that it may be too “easy to manufacture” an injury rooted in an organisation’s bare opposition to a policy if all it has to show is “diverted time and resources” associated with bringing the lawsuit. Meanwhile, Justice Samuel Alito suggested that the court has been flexible with standing in past cases and seemed exasperated by the possibility that no one could come up with a plausible plaintiff. “Is there anybody who can sue and get a judicial ruling on whether what FDA did was lawful?” he asked. “Shouldn’t somebody be able to challenge that in court?” That’s quite unlikely, replied Elizabeth Prelogar, the solicitor-general who ably defended the FDA’s moves. But in any case, the plaintiffs in court don’t “come within a hundred miles” of the Supreme Court’s long-standing standards.

Several justices explored Ms Prelogar’s claim that federal law provides “conscience protections” that “would guard against the injury the doctors face”. Justices Barrett and Brett Kavanaugh seemed satisfied with her assurance that the government would not force a doctor with an objection to ending fetal life to participate in an abortion. Justice Ketanji Brown Jackson added that the “obvious common-sense remedy” is to give individual doctors “an exemption” (which they already have) rather than, as she said to Ms Hawley, to “entertain your argument that no one else…in America should have this drug in order to protect your clients”.

Justice Neil Gorsuch jumped on this suggestion. Single-judge district courts, he lamented, too often refashion themselves as “a nationwide legislative assembly” when blocking actions of the federal government. The judiciary’s proper role, he said, is to “provide a remedy sufficient to address the plaintiff’s asserted injuries and go no further”.

Two justices seem ready to go significantly further. Justices Alito and Thomas invoked the Comstock Act, a law from 1873 that bans sending, among other “lewd” things, abortion medications and materials through the post. In 2022 the White House’s Office of Legal Counsel said that this 150-year-old law only prohibits posting such materials to people who will use them unlawfully. But Justice Alito was incredulous that the FDA did not at least mention the law when regulating mifepristone. And Justice Thomas told Jessica Ellsworth, the lawyer for Danco Laboratories (which markets the drug as Mifeprex) that it “specifically covers drugs such as yours”.

If three more justices who were mum on this 19th-century law have a similar view, a future administration could succeed in banning the posting of abortion medication. But for now, it seems, the nearly 650,000 American women who end their pregnancies each year with abortion pills will not see their access curtailed.

Visitors outside the Supreme Court on March 26th saw just how convenient mifepristone can be. Foot-high “Roe-bots” whizzed around the plaza ready to distribute abortion pills by prescription. Controlled by doctors in Massachusetts, New York and Washington, the bots can do a virtual consultation with a remote provider and dispense the medication on demand. A volunteer with Aid Access, the charity which organised the demonstration, noted the Roe-bots were perfectly legal. “It’s all very by the book,” she said. 

Economics

Trump will ‘buckle under pressure’ if Europe bands together over tariffs: German economy minister

Published

on

BERLIN, GERMANY – FEBRUARY 24: Robert Habeck, chancellor candidate of the German Greens Party, speaks to the media the day after German parliamentary elections on February 24, 2025 in Berlin, Germany. The Greens came in fourth place with 11.6% of the vote, down 2.9% from the previous election. (Photo by Sean Gallup/Getty Images)

Sean Gallup | Getty Images News | Getty Images

U.S. President Donald Trump will “buckle under pressure” and alter his tariff policies if Europe bands together, acting German economy minister Robert Habeck said Thursday.

“That is what I see, that Donald Trump will buckle under pressure, that he corrects his announcements under pressure, but the logical consequence is that he then also needs to feel the pressure,” he said during a press conference, according to a CNBC translation.

“And this pressure now needs to be unfolded, from Germany, from Europe in the alliance with other countries, and then we will see who is the stronger one in this arm wrestle,” Habeck said.

Elsewhere, outgoing German Chancellor Olaf Scholz said he believed the latest tariff decisions by Trump were “fundamentally wrong,” according to a CNBC translation.

The measures are an attack on the global trade order and will result in suffering for the global economy, Scholz said.

On Wednesday, Trump imposed 20% levies on the European Union, including on the bloc’s foremost economy Germany, as he signed a sweeping and aggressive “reciprocal tariff” policy.

Germany is widely regarded as one of the countries likely to be most impacted by Trump’s tariffs, given its heavy economic reliance on trade.

This is a developing story, please check back for updates.

Continue Reading

Economics

The Trump train slows

Published

on

THESE DAYS are dire and dour for Democrats. But April 1st brought a brief reprieve—and not because of jokes. That was the day that the most expensive judicial election in American history in the battleground state of Wisconsin ended in a decisive triumph for the left-leaning candidate. It had drawn $100m of spending, including an estimated $25m from Elon Musk who also, perhaps unhelpfully, personally campaigned in the state. The same day, two special elections in Florida for vacant congressional seats took place in safe Republican districts. Although they did not win, Democrats improved their margins by 17 and 20 percentage points compared with the general elections held just five months ago. Cory Booker, a Democratic senator from New Jersey, staged a one-man protest on the floor of the Senate, excoriating President Donald Trump’s administration for 25 hours straight—a stunt, to be sure, but one that demonstrated proof of life in a party that supporters worried had gone limp.

Continue Reading

Economics

How did the U.S. arrive at its tariff figures?

Published

on

U.S. President Donald Trump speaks during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC.

Chip Somodevilla | Getty Images

Markets have turned their sights on how U.S. President Donald Trump’s administration arrived at the figures behind the sweeping tariffs on U.S. imports declared Wednesday, which sent global financial markets tumbling and sparked concerns worldwide.

Trump and the White House shared a series of charts on social media detailing the tariff rates they say other countries impose on the U.S. Those purported rates include the countries’ “Currency Manipulation and Trade Barriers.”

An adjacent column shows the new U.S. tariff rates on each country, as well as the European Union.

Chart of reciprocal tariffs.

Courtesy: Donald Trump via Truth Social

Those rates are, in most cases, roughly half of what the Trump administration claims each country has “charged” the U.S. CNBC could not independently verify the U.S. administration’s data on these duties.

It didn’t take long for market observers to try and reverse engineer the formula — to confusing results. Many, including journalist and author James Surowiecki, said the U.S. appeared to have divided the trade deficit by imports from a given country to arrive at tariff rates for individual countries.

Such methodology doesn’t necessarily align with the conventional approach to calculate tariffs and would imply the U.S. would have only looked at the trade deficit in goods and ignored trade in services.

For instance, the U.S. claims that China charges a tariff of 67%. The U.S. ran a deficit of $295.4 billion with China in 2024, while imported goods were worth $438.9 billion, according to official data. When you divide $295.4 billion by $438.9 billion, the result is 67%! The same math checks out for Vietnam.

“The formula is about trade imbalances with the U.S. rather than reciprocal tariffs in the sense of tariff level or non-tariff level distortions. This makes it very difficult for Asian, particularly the poorer Asian countries, to meet US demand to reduce tariffs in the short-term as the benchmark is buying more American goods than they export to the U.S., ” according to Trinh Nguyen, senior economist of emerging Asia at Natixis.

“Given that U.S. goods are much more expensive, and the purchasing power is lower for countries targeted with the highest levels of tariffs, such option is not optimal. Vietnam, for example, stands out in having the 4th largest trade surplus with the U.S., and has already lowered tariffs versus the U.S. ahead of tariff announcement without any reprieve,” Nguyen said.

The U.S. also appeared to have applied a 10% levy for regions where it is running a trade surplus.

"Absolutely nothing good coming out" of Trump tariff announcement, veteran economist Rosenberg says

The Office of the U.S. Trade Representative laid out its approach on its website, which appeared somewhat similar to what cyber sleuths had already figured out, barring a few differences.

The U.S.T.R. also included estimates for the elasticity of imports to import prices—in other words, how sensitive demand for foreign goods is to prices—and the passthrough of higher tariffs into higher prices of imported goods.

“While individually computing the trade deficit effects of tens of thousands of tariff, regulatory, tax and other policies in each country is complex, if not impossible, their combined effects can be proxied by computing the tariff level consistent with driving bilateral trade deficits to zero. If trade deficits are persistent because of tariff and non-tariff policies and fundamentals, then the tariff rate consistent with offsetting these policies and fundamentals is reciprocal and fair,” the website reads.

This screenshot of the U.S.T.R. webpage shows the methodology and formula that was used in greater detail:

A screenshot from the website of the Office of the United States Trade Representative.

Some analysts acknowledged that the U.S. government’s methodology could give it more wiggle room to reach an agreement.

“All I can say is that the opaqueness surrounding the tariff numbers may add some flexibility in making deals, but it could come at a cost to US credibility,” according to Rob Subbaraman, head of global macro research at Nomura.

 — CNBC’s Kevin Breuninger contributed to this piece.

Continue Reading

Trending