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Supreme Court Hears Challenge to Trump’s Emergency Tariff Power

The justices will decide whether IEEPA’s directive to regulate importation authorizes the president to impose duties.

Overview

  • Oral arguments open in consolidated cases brought by small businesses and states, with the tariffs remaining in effect until the Court rules.
  • Lower courts concluded the president likely exceeded IEEPA authority for sweeping duties and flagged major-questions and nondelegation concerns, but stayed their judgments.
  • The dispute targets Trump’s global “reciprocal” tariffs and drug‑trafficking tariffs on China, Mexico and Canada, while sector‑specific duties under other laws are not at issue.
  • U.S. Customs data show roughly $90 billion collected under IEEPA tariffs and about $195 billion in total tariffs since rollout, exposing the government to potential refunds if the policy is struck down.
  • Treasury Secretary Scott Bessent is attending the hearing and says the administration could pivot to other statutes such as Sections 232, 301, 122 or 338 if the Court rejects IEEPA authority.