Supreme Court to Review Legality of Trump Tariffs Impacting Billions, Global Trade

President Donald Trump's administration has asked the U.S. Supreme Court to quickly review the legality of his sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA), following lower court rulings that found these tariffs unlawful. The Federal Circuit and Court of International Trade ruled that Trump exceeded his authority because IEEPA does not explicitly grant tariff powers, invoking the 'major questions' doctrine emphasizing that significant powers must be clearly authorized by Congress. Treasury Secretary Scott Bessent warned that if the Supreme Court rules against the tariffs, the government could face catastrophic economic consequences, including the need to refund tens of billions of dollars collected from the tariffs, which would severely impact Treasury revenues. The tariffs, used as a negotiating tool in trade and foreign policy, currently include high duties on imports from countries like India, Switzerland, and trading partners under the USMCA, with ongoing sector-specific tariffs exempt from this legal challenge. A Supreme Court ruling in favor of Trump would uphold these tariffs and maintain recent trade deals, but a ruling against them would reduce the U.S. average tariff rate significantly and potentially unravel the administration’s trade agreements. The case highlights the ongoing tension between executive power and congressional authority in shaping U.S. trade policy and national security measures.