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Supreme Court Signals Doubts About Trump’s Emergency Tariff Powers

Research showing tariff-driven price increases underscores the stakes before the justices.

Overview

  • During expedited arguments, conservative justices including Neil Gorsuch and Amy Coney Barrett questioned whether IEEPA authorizes tariffs or shifts Congress’ taxation powers to the executive.
  • Two lower courts previously held that IEEPA does not permit these tariffs, the measures remain in effect during the appeal, and a Supreme Court ruling is expected by late June.
  • Harvard Pricing Lab finds retail prices rose faster after the 2025 tariff rollout, estimating about a 0.7 percentage point boost to CPI with an effective tariff rate near 17.9% per Yale Budget Lab.
  • Democratic gains in Virginia and New Jersey featured attacks on higher prices linked to tariffs, while the White House defended the program as central to its trade agenda.
  • Industry groups anticipate fallback strategies under other trade statutes if IEEPA is narrowed, and prediction markets now give the administration much lower odds of prevailing.