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Supreme Court Casts Doubt on Trump’s Emergency Tariff Powers After Testy Hearing

The outcome could trigger refund battles, redirecting tariff policy to other statutes.

Overview

  • After nearly three hours of arguments, several justices questioned using the 1977 IEEPA to levy broad, revenue-raising tariffs, with Chief Justice John Roberts flagging major-questions and separation-of-powers concerns.
  • Conservative Justices Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett probed textual routes that might sustain the policy, focusing on IEEPA’s "licenses or otherwise" language and a 1976 precedent upholding import fees.
  • The tariffs remain in force as collections mount, with estimates ranging from roughly $115 billion to as high as $195 billion, and any invalidation could set off a slow, contested refund process.
  • Prediction markets marked down the chances of the tariffs being upheld to about 21%, and analysts see a decision likely between December 2025 and January 2026.
  • Trade experts say a loss on IEEPA would not end aggressive tariff policy because the administration could pivot to other authorities, including Sections 301, 232, 122 and 338.