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Small Businesses, States Press Supreme Court to Strike Down Trump’s IEEPA Tariffs

The case tests whether IEEPA’s grant to “regulate importation” lets the president levy tariffs without a clear taxing mandate from Congress.

Overview

  • New briefs from small businesses and 12 states ask the Court to keep rulings against Trump’s “reciprocal” tariffs of 10%–50% on most countries and “trafficking” tariffs on Canada, China, and Mexico, with oral argument set for Nov. 5 after an expedited grant.
  • Two lower courts struck down most of the duties, and the Federal Circuit affirmed in a 7–4 decision that IEEPA does not clearly authorize the tariffs given their vast economic and political significance.
  • Challengers argue IEEPA never mentions tariffs or duties, invoke the major-questions and nondelegation doctrines, and point to Section 122 as the specific statute addressing trade deficits with defined limits.
  • The administration, through Solicitor General D. John Sauer, counters that tariffs are a traditional way to regulate imports under IEEPA and warns that abrupt invalidation could carry national-security and financial risks.
  • Economic stakes are substantial: CBP reports nearly $90 billion collected through September, the CBO projects roughly $4 trillion over the next decade, and firms like Learning Resources and hand2mind estimate $100 million in tariff costs this year.