Overview
- During oral arguments, justices from both ideological blocs voiced skepticism about the legality of imposing reciprocal tariffs without congressional approval.
- The case turns on whether the International Emergency Economic Powers Act authorizes such tariffs absent new authorization from Congress.
- President Trump said he is preparing a “second plan” in case of a loss and described that outcome as devastating.
- Officials are considering alternative authorities previously used for sector-specific duties, which require formal investigations and would slow any new tariffs.
- Trump signaled he could cancel trade negotiation agreements with Japan, the European Union and South Korea if the administration loses, and a ruling could come by year’s end.