Supreme Court Weighs Trump's Tariffs: What You Need to Know
In a case that could reshape the balance of power between the White House and Congress over trade and emergency authority, the Supreme Court will hear arguments today in Trump v. V.O.S. Selections, Inc., a high-stakes tariff showdown between President Donald Trump and private business plaintiffs.
At issue is whether Trump's reliance on the International Emergency Economic Powers Act (IEEPA), a 1977 statute allowing presidents to regulate certain international transactions during declared national emergencies, authorizes the tariffs imposed by Trump in early 2025. The tariffs, which include duties of up to 125 percent on imports from countries such as China, Mexico, and Canada, were imposed under emergency powers and have generated nearly $195 billion in revenue this year.
The lower courts have disagreed on the issue, with a federal appeals court ruling that IEEPA's language empowering presidents does not extend to open-ended tariffs like Trump's. The majority said Congress had carefully constructed tariff schedules and had not delegated authority for worldwide duties of unlimited duration.
However, Judge Richard Taranto wrote in dissent that Congress had deliberately given presidents broad discretion under IEEPA to handle emergencies involving national security or foreign commerce. He argued that it was "especially out of place" to limit executive flexibility in a law meant for crisis response.
The Supreme Court accepted the case on an expedited basis and will confront two questions: First, whether IEEPA authorizes the tariffs; second, if it does, whether that law unconstitutionally delegates Congress's taxing power to the executive branch.
The stakes are substantial, with the administration arguing that tariffs are a legitimate tool for regulating imports to address threats. However, challengers argue that tariffs are taxes, and only Congress can impose them. A ruling against the administration could unravel trade deals negotiated under the tariff framework and upend fiscal projections. On the other hand, a ruling in Trump's favor could greatly expand the use of emergency powers in economic policy.
The Court's conservative majority has invoked the major questions doctrine to strike down Biden-era initiatives on student loans, pandemic mandates, and climate rules. If they apply the same standard to Trump's tariffs, it will determine whether those policies stand as a bold assertion of presidential authority—or a step too far into Congress's domain.
In a case that could reshape the balance of power between the White House and Congress over trade and emergency authority, the Supreme Court will hear arguments today in Trump v. V.O.S. Selections, Inc., a high-stakes tariff showdown between President Donald Trump and private business plaintiffs.
At issue is whether Trump's reliance on the International Emergency Economic Powers Act (IEEPA), a 1977 statute allowing presidents to regulate certain international transactions during declared national emergencies, authorizes the tariffs imposed by Trump in early 2025. The tariffs, which include duties of up to 125 percent on imports from countries such as China, Mexico, and Canada, were imposed under emergency powers and have generated nearly $195 billion in revenue this year.
The lower courts have disagreed on the issue, with a federal appeals court ruling that IEEPA's language empowering presidents does not extend to open-ended tariffs like Trump's. The majority said Congress had carefully constructed tariff schedules and had not delegated authority for worldwide duties of unlimited duration.
However, Judge Richard Taranto wrote in dissent that Congress had deliberately given presidents broad discretion under IEEPA to handle emergencies involving national security or foreign commerce. He argued that it was "especially out of place" to limit executive flexibility in a law meant for crisis response.
The Supreme Court accepted the case on an expedited basis and will confront two questions: First, whether IEEPA authorizes the tariffs; second, if it does, whether that law unconstitutionally delegates Congress's taxing power to the executive branch.
The stakes are substantial, with the administration arguing that tariffs are a legitimate tool for regulating imports to address threats. However, challengers argue that tariffs are taxes, and only Congress can impose them. A ruling against the administration could unravel trade deals negotiated under the tariff framework and upend fiscal projections. On the other hand, a ruling in Trump's favor could greatly expand the use of emergency powers in economic policy.
The Court's conservative majority has invoked the major questions doctrine to strike down Biden-era initiatives on student loans, pandemic mandates, and climate rules. If they apply the same standard to Trump's tariffs, it will determine whether those policies stand as a bold assertion of presidential authority—or a step too far into Congress's domain.