The United States Supreme Court has agreed to hear a fast-moving appeal filed by President Donald Trump’s administration to decide on the legality of global tariffs.
The court’s decision will determine whether the duties, still in effect, stand or fall by year’s end. This case is a significant test of presidential power on trade, a hallmark of Trump’s economic agenda.
The tariffs in question were imposed by Trump under the 1977 International Emergency Economic Powers Act (IEEPA), which the US Court of Appeals for the Federal Circuit deemed an overreach of presidential powers.
The Trump administration argues that the law gives the president the authority to regulate imports and that the country would be on the “brink of economic catastrophe” if the president were barred from exercising unilateral tariff authority.
The small businesses and states that challenged the tariffs say Trump illegally used emergency powers to set import taxes on goods from almost every country in the world, nearly driving their businesses to bankruptcy.
US Solicitor General D. John Sauer has argued that the lower court rulings are already impacting trade negotiations. A ruling against the tariffs could hamper the nation’s ability to reduce the flow of fentanyl and efforts to end Russia’s war against Ukraine.
The Trump administration claims that a reversal could prompt retaliation and refund demands from nations facing hefty tariffs.
Revenue from tariffs totalled $159 billion by late August, more than double what it was at the same point a year earlier. Trump has made tariffs a key foreign policy tool, using them to renegotiate trade deals, extract concessions, and exert political pressure on countries.
The Supreme Court has put the case on a fast track, scheduling oral arguments for the first week of November. The court’s 6-3 conservative majority, including three Trump appointees, will likely shape the outcome.
The case involves two sets of import taxes, both of which Trump justified by declaring a national emergency: the tariffs first announced in April and the ones from February on imports from Canada, China, and Mexico.
One big question is whether the justices’ own expansive view of presidential authority allows for Trump’s tariffs without the explicit approval of Congress, which the US Constitution endows with the power to levy tariffs.
The administration did win over four appeals court judges who found the IEEPA lets the president regulate importation during emergencies without explicit limitations.
The Supreme Court’s decision will have significant implications for Trump’s trade policy and the nation’s economy. The case has been fast-tracked, with oral arguments scheduled for early November.
The outcome will depend on the court’s interpretation of presidential authority and the IEEPA. As the court begins its next nine-month term on October 6, the stakes are high for Trump’s economic agenda.