Overview

• The Court agreed to hear the administration’s appeal on whether the 1977 International Emergency Economic Powers Act permits broad, economy-wide import tariffs.
• Lower courts, including the Federal Circuit, found most of the duties exceeded presidential authority but left them in place during the appeals process.
• The contested measures include a generic 10% tariff, so-called reciprocal rates, and separate levies on imports from China, Canada and Mexico, while sectoral tariffs like those on steel and aluminum are not at issue.
• Plaintiffs comprising small businesses and several states, including companies such as Learning Resources, argue the Constitution assigns tariff-setting to Congress and that IEEPA cannot be stretched to cover general trade duties.
• The administration contends IEEPA authorizes regulating imports, warns that striking down the tariffs could force large Treasury refunds, and notes tariff receipts have totaled about $159 billion through August.