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Supreme Court Questions Tariff Power Under IEEPA as Trump Warns of $3 Trillion ‘Unwind’

Lower courts have already rejected the tariff theory, with duties continuing during review.

Overview

  • Justices from both wings pressed the government on Nov. 5 about reading IEEPA to allow broad revenue-raising duties and highlighted the statute’s lack of explicit tariff language.
  • The Court of International Trade and a divided Federal Circuit previously ruled that IEEPA does not authorize the president to impose tariffs, yet collections remain in place pending a final ruling.
  • Trump said on Truth Social that losing the case would force an “unwind” exceeding $3 trillion, characterizing it as a national security crisis.
  • Importers and customs brokers told CNBC that refunds would be traceable via itemized Customs entries, though executing repayments could require extensive filings and time.
  • Government data and analyses report hundreds of billions collected this year and project multi‑trillion fiscal effects over a decade if the duties persist, as legal observers stress the case’s separation‑of‑powers stakes.