Soon after assuming office, President Trump signed executive orders proclaiming a national emergency related to illegal immigration and drug trafficking involving Mexico, Canada, and China. In April, he released another order citing a state of emergency due to the ‘large and persistent trade deficits’ the United States faced with numerous nations worldwide. Following these orders, Trump’s government imposed tariffs ranging from 10% to over 100% on imports from other countries. A coalition of small business owners, together with several Democrat-led states, filed a lawsuit challenging the legality of Trump’s tariffs.
On Wednesday (November 5, 2025), the US Supreme Court heard arguments concerning the legality of President Donal Trump’s global tariff policy. The outcome of this case holds major implications for American consumers and businesses, the country’s economic stability, international relations, and the scope of presidential authority in the future.
If the tariffs are struck down, the US government bears the duty to pay back tens of billions of dollars to businesses that already paid the tariffs. If this outcome happens, the tariffs that are used by President Trump to negotiate new trade deals with other countries will also be eliminated. On the contrary, if the tariff policy is upheld by the Supreme Court, it will expand the presidential power and maintain one of the main policies of President Trump’s agenda.
Justices remain skeptical about President Trump’s tariff authority. The authority to impose taxes on citizens and tariffs on imported goods is given to the Congress by the Constitution, with a few exceptions in which allow the President to carry this authority during national emergencies. The central issue in Trump’s tariffs case is whether the 1977 International Emergency Economic Powers Act (IEEPA) authorizes the President to unilaterally impose tariffs on any nation, at any rate, and for any duration, solely based on his own declaration of a national emergency situation. Trump is the first US President to invoke the IEEPA as a basis for imposing tariffs as exception to the power of the Congress, meaning this also the first case the US Supreme Court review a case concerning this authority of the President. The ruling is expected to be issued before the end of June 2026.
