Washington, Nov 6: The US Supreme Court on Wednesday appeared skeptical of President Donald Trump’s sweeping global tariffs imposed under emergency powers, in a case that could reshape presidential authority over trade.
The court is reviewing whether Trump lawfully invoked the International Emergency Economic Powers Act (IEEPA) of 1977 to levy tariffs on imports from more than 100 countries, measures that have impacted global commerce, increased prices for US consumers, and triggered retaliatory actions from trading partners.
The legal challenge comes from two lawsuits filed by 12 US states, led by Oregon, and several small businesses, arguing that IEEPA does not authorize a president to unilaterally impose tariffs. They maintain that the Constitution grants Congress exclusive power to tax imports.
Arguing for the petitioners, Indian-American lawyer Neal Katyal said Congress never intended for the IEEPA to allow a president to “overhaul the entire tariff system and the American economy,” setting and resetting tariffs at will.
Chief Justice John Roberts questioned the administration’s interpretation, noting that taxation has historically been “a core power of Congress.” Justice Brett Kavanaugh highlighted Trump’s 50% tariffs on India as an example of the administration framing emergencies in broad terms.
US Solicitor General John Sauer, representing the government, defended the tariffs as a legitimate exercise of executive power to regulate foreign commerce, asserting that any revenue generated was “incidental.” He cautioned that limiting presidential authority could weaken America’s negotiating leverage in future trade disputes.
Trump has defended his tariffs as a “favorite economic and diplomatic tool,” crucial for securing fair deals with countries such as China.
Lower courts have largely ruled against Trump’s broad reading of IEEPA. In August, the US Court of Appeals for the Federal Circuit found that while IEEPA grants emergency powers, the tariffs exceeded the president’s authority. Earlier in May, the International Trade Court invalidated certain tariffs on China and Canada.
The Supreme Court has received over 40 briefs, including one from 207 lawmakers only one Republican among them, Senator Lisa Murkowski, who argued that “neither the word ‘duties’ nor ‘tariffs’ appears anywhere in the IEEPA.”
A ruling against the government could compel billions in refunds potentially over $100 billion collected since 2022 and significantly disrupt markets. The decision, expected in early 2026, may have wide-ranging implications for US trade policy, presidential authority, and international economic relations.