Trump Tariffs Face Supreme Court Test That Could Reshape US Trade Policy
A major legal battle over former President Donald Trump’s trade strategy begins this week as the US Supreme Court hears arguments over the legality of tariffs imposed under national emergency powers.
Small businesses, trade groups and several states are challenging the broad tariffs, arguing that the administration exceeded its constitutional authority and that the tariffs should be struck down. If the court agrees, the ruling could dismantle a central pillar of Trump’s trade agenda and potentially require refunds of billions of dollars already collected from import taxes.
High Stakes for White House and Businesses
Trump has framed the case as vital to America’s economic security, warning that a loss would undermine the administration’s leverage in trade negotiations. However, many US businesses say they have been hurt by rapid, unpredictable tariff decisions that have raised costs and disrupted supply chains.
Learning Resources, a US educational toy company involved in the lawsuit, said its tariff bill has soared to $14 million this year. Cooperative Coffees, another plaintiff, said it has paid more than $1.3 million in levies since April and has been forced to take on additional credit just to operate.
“This is an energy drain like nothing we’ve experienced,” said Bill Harris, co-founder of Cooperative Coffees. “It changes the way we plan, price and survive.”
Core of the Legal Debate
The case centers on Trump’s use of the International Emergency Economic Powers Act (IEEPA), a 1977 law that allows the president to act quickly in response to national emergencies. Trump used the law to justify tariffs on goods from China, Mexico, Canada and eventually nearly every country, citing drug trafficking and the US trade deficit as emergencies.
Opponents argue that the law was never intended to authorize tariffs and that only Congress has the constitutional power to impose taxes. More than 200 members of Congress from both parties have filed briefs supporting that position.
Billions in Revenue Could Be at Stake
Lower courts have previously ruled against the administration. If the Supreme Court upholds those decisions, analysts estimate that more than $90 billion in tariffs already collected could be subject to claims for reimbursement. Trump officials have warned the exposure could grow if the court delays a ruling until next year.
Even if the tariffs are overturned, the White House has suggested it could reimpose duties under other trade laws, though those would require more procedural steps and longer timelines.
Uncertain Outcome
The Supreme Court’s ruling could take months. Legal analysts say the justices may avoid defining what constitutes a national emergency, instead focusing on whether the tariff measures fall within presidential authority.
Businesses and international partners are watching closely. The European Parliament has already delayed action on recent trade agreements with the US pending the court’s decision, and exporters in countries like Switzerland say the tariffs have already erased profits.
For now, both sides prepare for a ruling that could set a major precedent in how far a president can go in reshaping the global trade landscape — without Congress.
