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Trump tariffs face Supreme Court

2 14
04.11.2025
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The Big Story

Trump tariffs face crucial test before Supreme Court

President Trump’s sweeping tariffs will be scrutinized by the Supreme Court on Wednesday, placing the president’s most significant economic initiative into the justices’ hands.

© AP

The main question looming over the case is whether Trump can use emergency powers to justify his worldwide levies as he seeks to transform global trade — an untested expansion of executive authority.

Trump has justified the bulk of his sweeping tariff agenda by pointing to the International Emergency Economic Powers Act (IEEPA), which gives the president power to “regulate” imports in response to certain emergencies.

Small businesses and Democratic-led states will make the case Wednesday that Congress never envisioned “regulate” to include tariffs when it passed IEEPA in 1977.

No president before Trump invoked the law to impose tariffs, so the Supreme Court has never decided that question. The justices’ answer may depend on how they view a 50-year-old appellate decision dating back to former President Nixon.

An appeals court’s 50-year-old decision could come into play regarding Trump’s own statements about his banner policy.

Read more here.

 

Welcome to The Hill’s Business & Economy newsletter, I'm Sylvan Lane — covering the intersection of Wall Street and Pennsylvania Avenue.

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© The Hill