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Supreme Court Casts Doubt on Trump’s Tariff Powers Under Emergency Law

Businesses report rising costs as the justices weigh the scope of emergency trade powers.

Overview

  • In expedited arguments, several justices questioned whether the International Emergency Economic Powers Act clearly authorizes sweeping, revenue‑raising tariffs.
  • Chief Justice John Roberts emphasized that tariffs function as taxes, a point central to challengers’ claims that taxing and trade powers rest with Congress.
  • Plaintiffs argue the Constitution reserves authority over duties and commerce to lawmakers, while President Trump calls the case vital and warns of severe consequences if he loses.
  • A survey of small businesses found most expect higher input costs and planned price increases, and a St. Louis Fed analysis notes noticeable gains in durable‑goods prices.
  • Opinion writers and business owners urge Congress to reassert tariff authority to restore predictability for pricing, investment, and hiring.