SOTS 2nd Hour: December Jobs Report - Goldman's Takeaways, Rockefeller's Ruchir Sharma; Plus - SCOTUS/Tariffs Decision Latest 1/9/25

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David Faber (0:58)

Market Insight and Analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Sara Eisen (1:08)

Good Friday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live from Post 9 of the New York Stock Exchange. We are getting ready for what could be a big hour of breaking news as we wait to see whether the Supreme Court will issue a ruling on the president's tariffs. We'll bring it to you any news as soon as we get it. We also have some big names ready to weigh in on this morning's jobs report including Mohammed Al-Aryan, Chief Economic Advisor at Allianz is here. Plus Goldman Sachs Jan Hatzius with his first take on the numbers, what it means for the Fed policy moving forward.

Carl Quintanilla (1:41)

Let's get to Eamon Javer's, talk about this possible decision on the legality of the president's tariffs.

Phil LeBeau (1:46)

Morning Eamon.

Eamon Javers (1:47)

Yeah, good morning to you Carl. We are on high alert here in Washington waiting to see whether the Supreme Court will issue that decision today. They're under a lot of pressure to get this done because of course companies are paying the tariffs in real time and companies want some clarity of whether those tariffs are in fact legal for the administration to collect. To put this in perspective for you Carl, take a look at sort of what's at stake here. The overall tariff revenue that was collected in 2025 and 2026 so far this year. And then what the subset is from these so-called IEPA tariffs which are at stake here in the Supreme Court. Total tariff revenue collected $251 billion. The IEPA specific tariffs $133 billion. That's the part that's at risk here because the question in the Supreme Court is whether the International Emergency Atomic Economic Powers Act actually has the authority in it to collect tariffs. That's the law that the president used to justify his tariffs. And that's what's at issue in the Supreme Court today. So if those tariffs are struck down by the court today, the expectation is, all this could be determined by the court in a different way, but the expectation is now that the US government would be expected to repay that $133 billion to the companies that sent those checks to the US government. So a lot at stake for all the companies that paid tariffs, a lot at stake for the Trump administration. The president himself has been hammering home in recent weeks just how important he thinks this ruling is to his leadership as president of the United States, his ability to bring foreign countries to the table to negotiate, his ability to collect revenue for the US government, and his leadership overall of the American economy, guys. So a lot at stake. We expect over the next couple of minutes that we will get a sense of whether the Supreme Court has issued a ruling or not, and we'll go through it page by page as soon as we get it. Carl, back over to you.

David Faber (3:43)

Amy, you know, Kevin Hassett earlier indicated the administration has this fallback plan already of using other authorities conceivably to replace the authority that may be lost if, in fact, the Supreme Court rules against them. Do we have any sense as to how quickly that could take place?

Eamon Javers (3:56)

Yeah, David, I'm just being told here by our producer Ashley Trujillo that we have one decision from the Supreme Court that has just come in and is not the decision that we're looking for, correct, Ashley? So no opinion today on tariffs, guys. Just one opinion from the Supreme Court. They don't tell you exactly what's coming each day. So you just know there's a decision day. And what we're being told right now is that they have issued a decision, but it is not the decision in the tariffs case. That means we're going to continue to wait here. And that means, as you mentioned, David, that that meeting that Kevin Hassett discussed on our air this morning to plan for sort of plan B options on tariffs. The White House is going to have a little bit more time to consider its plan B options. They have said they have a lot of options. One would be changing the tariffs into some sort of fee in order to just replace the tariff language with a fee language. That might be enough to pass Supreme Court muster, depending on what the decision is that comes down. But as of right now, we're being told no decision by the Supreme Court on tariffs today, guys.