Overview
- Oral arguments on November 5 will examine whether the International Emergency Economic Powers Act lets the president unilaterally impose broad tariffs, in consolidated cases Learning Resources Inc. v. Trump and Trump v. V.O.S. Selections Inc.
- Lower courts, including the U.S. Court of International Trade and a majority of the Federal Circuit, ruled that IEEPA does not authorize the tariffs, but the duties remain in force during Supreme Court review.
- American businesses have paid nearly $90 billion under the IEEPA tariffs as of September 23, while total tariff revenue in fiscal 2025 reached $215.2 billion, raising the prospect of complex refunds if the challengers prevail.
- The outcome could either narrow or expand presidential authority over trade and national security, with alternatives such as Sections 232, 301 and 201 still available but more constrained and slower to deploy.
- U.S. partners are closely watching, notably Canada, which faces economywide fentanyl-related tariffs now at 35% with CUSMA carveouts, as the administration defends the measures as lawful emergency actions.