The Supreme Court will hear arguments today about whether President Trump’s sweeping tariffs are constitutional. Its decision will impact countless small- and medium-sized businesses around the US—some of which are leading the lawsuits against the administration.

But it’s not only about the tariffs: Legal scholars say that the case could rewrite the country’s understanding of executive power.

Oral arguments will center on Trump’s use of the International Emergency Economic Powers Act (IEEPA), which was passed in 1977 to keep executive actions in check after the Vietnam War. The IEEPA grants the president the ability to “investigate, regulate, or prohibit” international economic transactions by declaring a national emergency:

• The Trump administration declared three national emergencies to justify tariffs against Canada, Mexico, and China, which prompted the first lawsuit. In total, Trump has declared nine national emergencies since taking office in January.
• The White House argues that the fentanyl crisis and unbalanced duties constitute national emergencies because they pose national security risks.
• Critics say that the administration is abusing the phrase “national emergency” to circumvent congressional approval. They point out that the Constitution only gives Congress the ability to levy taxes—not the president.

The law has historically been used to justify much smaller-scale sanctions or embargoes on other countries and hostile actors. The IEEPA doesn’t mention anything specifically about trade or tariffs.

Possible outcomes

SCOTUS could rule that the tariffs were an overreach of executive power and force the government to issue billions in refunds to affected businesses. Treasury Secretary Scott Bessent said he’s not too worried about that, because the administration has other “authorities” it could pursue if the ruling doesn’t go its way.

Alternatively, the court could rule in favor of the Trump administration, arguing that lower courts can’t question presidential decrees of national emergency. “If the court greenlights the tariffs, then this is a new world order in terms of the constitutional scheme for taxing, for spending, and for regulating all aspects of the economy,” Hofstra Law professor James Sample told ABC News. A final ruling is expected by June 2026.—MM

Mamdani will be NYC’s next mayor after big night for Democrats. The Associated Press called the race for Zohran Mamdani, a self-described democratic socialist, at 9:34pm ET. The 34-year-old received 50.4% of the votes with 91% of ballots counted, beating former NY Gov. Andrew Cuomo (who ran as an independent), who received 41.6% of the vote, and Republican Curtis Sliwa, who received 7.1% When sworn in on Jan. 1, Mamdani will become the city’s first Muslim mayor. He’ll also be the first person of South Asian descent to lead the city. Democrats won the other major contests around the country, including for the governorships of Virginia and New Jersey. In California, the Proposition 50 redistricting measure, put forward in response to Texas’s midcycle redistricting, passed handily. In remarks after its passage, CA Gov. Gavin Newsom reflected on Democrats’ success, saying, “Tonight, after poking the bear, this bear roared.”—HVL

Dick Cheney died at 84. The cause of death was complications of pneumonia and cardiac and vascular disease, according to a statement from his family. Perhaps the most powerful and polarizing US vice president in history, Cheney was considered the architect of the US’ response to 9/11 and the chief strategist of the “war on terror” under President George W. Bush. He pushed for the US to invade Iraq based on false claims that Saddam Hussein’s regime possessed weapons of mass destruction, infamously predicting that American troops “will be greeted as liberators.” He wielded far more influence than typical vice presidents, reportedly striking an unspoken deal with Bush that in exchange for quelling his desire to be president himself, he’d get to shape the administration’s policies. Following Jan. 6, 2021, Cheney and his daughter, former Republican Rep. Liz Cheney, became vocal critics of fellow Republican President Trump.—AE

Major Tesla shareholder will vote against Musk’s $1 trillion pay package. Elon may not be booking any vacations to Oslo any time soon. Norway’s sovereign wealth fund—one of Tesla’s biggest investors—announced it will vote against the Tesla CEO’s proposed $1 trillion stock award at the company’s annual meeting tomorrow. “While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,” the fund said in a statement. Musk has threatened to leave the company if shareholders do not approve the compensation, which will only be awarded if Tesla hits certain goals over the next decade. Proxy advisors Institutional Shareholder Services and Glass Lewis have also urged investors to reject the package, prompting Musk to label them as “corporate terrorists” on a call with analysts last month.—AE

Palantir insists that the Big Short guy is missing the mark this time. The LOTR-named AI purveyor’s shares dropped almost 8% yesterday, despite its higher-than-expected Q3 earnings, in part thanks to revelations that Michael Burry—the trader who presciently shorted mortgage-backed securities before the 2007 housing crash—bet against it.

Burry’s hedge fund disclosed this week that it bought over $1 billion in put options, which profit from price declines, on Palantir and Nvidia last quarter, going contrarian on stocks that soared more than 150% and nearly 48%, respectively, this year amid Wall Street’s widespread AI optimism.

Palantir clapped back

Palantir CEO Alex Karp didn’t mince words yesterday:

• He called Burry’s trades “market manipulation,” and suggested that the investor should short companies that “are not doing a noble task."
• Karp also said, “The idea that chips and ontology is what you want to short is batshit crazy.”

It’s unclear if Burry’s short positions were part of larger complex trades, but they might reflect his outlook on the market. In a rare social media post last week, Burry made a cryptic reference to a hypothetical bubble, and this week, he shared a Bloomberg graphic showing the circular nature of some AI investments.

Burry wouldn’t be the only bear…as several Wall Street executives said this week they think stocks could be overvalued and due for a reckoning in the coming quarters.—SK

Pizza Hut, the top destination for divorced dads taking their kids out for dinner, could be headed for a sale. Parent company Yum Brands announced yesterday that it’s conducting a strategic review to decide the future of the floundering pizza chain after several years of shrinking market share.

I’m at the combination Pizza Hut/strategic review. Also on the table for the Hut—unlike those cool red drinking glasses from the ’80s they discontinued—is a joint venture or a sale of just a stake in the company.

Pizza Hut isn’t alone

The move by new CEO Chris Turner comes following eight straight quarters of declining sales (turns out, you can outpizza the Hut). The pioneers of stuffing cheese in crust have been hurt by consumers reining in spending on dining out due to inflation and a weak job market.

Other chains making recent moves—or considering one—include:

• Denny’s announced on Monday that it’s going private in a $620 million deal.
• Bojangles is reportedly mulling a $1.5 billion sale of its fried chicken empire.
• Jack in the Box divested from Del Taco last month, and Krispy Kreme offloaded its piece of Insomnia Cookies over the summer.

Cold pizza: While Papa John’s has sliced into the Hut’s bottom line, its stock tanked yesterday after word got out that Apollo Global Management is no longer taking Papa John’s private.—DL

Records you’d rather not see broken include: number of emails in your inbox after a day off, largest collection of expired coupons, and the longest-ever closure of the US federal government. And, well, our inbox is clear and we’re all out of coupons.

Today marks the 36th day of the ongoing government shutdown, officially making it the lengthiest in US history. The previous recordholder was the 35-day shutdown during President Trump’s first term in 2018–2019.

The shutdown’s effects are mounting, as many Americans are forced to go without their usual federal assistance and flight delays increasingly snarl airports. Transportation Secretary Sean Duffy said there could be “mass chaos” next week if the shutdown continues. But there may be some hope: Senate leaders suggested yesterday that they’re getting closer to a deal that would reopen the government.—AE