Overview
- The justices heard nearly three hours of argument on whether the 1977 IEEPA allows broad, open‑ended tariffs, with Amy Coney Barrett, Neil Gorsuch and Chief Justice John Roberts pressing the government’s case.
- Lower courts have already struck down much of the program as beyond presidential authority reserved to Congress, and a Supreme Court ruling is expected in weeks to months.
- An adverse decision could force parts of the tariff regime to be unwound and expose billions in previously collected duties to potential refund claims, though the scope is uncertain.
- In parallel, Washington and Beijing implemented recent de‑escalation steps: both extended reduced April tariffs at 10% for a year, the U.S. halved “fentanyl” duties to 10%, and China paused extra levies on U.S. agricultural goods.
- The EU remains subject to a 15% general rate under the challenged measures, and German industry groups report falling exports to the U.S. and higher input costs.