Economy

Supreme Court to Scrutinize Trump’s Tariffs: What’s at Stake for the US Economy and Presidential Power?

SCOTUS will hear Trump’s tariff case. It questions his power to impose tariffs, impacting $1T in collected duties.

September 9, 2025, 7:11 PM

The U.S. Supreme Court building is framed by green trees and flowers on a sunny day

The Supreme Court building is shown from a distance, framed by lush foliage and a manicured lawn on a sunny day. By MDL.

Executive Summary

The Supreme Court will hear arguments in November regarding President Donald Trump’s global tariffs, which a lower court deemed unlawfully imposed.

The legal challenge questions President Trump’s authority to levy emergency tariffs without explicit congressional approval, arguing that the power to impose taxes is constitutionally vested in Congress.

The expedited review underscores the case’s critical nature, with a decision by June set to determine the legality of President Trump’s tariff policies and set a precedent for executive and legislative power in trade.

The Story So Far

The Supreme Court is currently reviewing an expedited appeal concerning extensive global tariffs imposed by President Donald Trump’s administration, particularly on goods from China, Mexico, and Canada. A lower federal appeals court previously ruled these tariffs unlawful, asserting that President Trump exceeded his authority by using the International Emergency Economic Powers Act, as the constitutional power to impose taxes rests with Congress, thereby setting up a critical case on the scope of presidential power in economic policy.

Why This Matters

The Supreme Court’s decision to hear arguments on President Trump’s global tariffs will have significant implications, potentially reshaping the balance of power between the executive and legislative branches concerning trade policy and emergency economic measures. The ruling will determine the legality of substantial tariffs already collected, creating considerable uncertainty for the American economy and setting a crucial precedent for future presidential authority in imposing trade barriers without explicit congressional approval.

Who Thinks What?

A federal appeals court in Washington found that President Trump’s administration unlawfully imposed tariffs, determining he exceeded his authority by relying on the International Emergency Economic Powers Act, as the power to impose taxes is constitutionally vested in Congress.

President Trump’s administration requested an expedited review from the Supreme Court, arguing for the legality of the tariffs and citing the considerable uncertainty and potential disruption surrounding the fate of collected duties if a decision were delayed.

The Supreme Court announced Tuesday it will hear arguments regarding President Donald Trump’s extensive global tariffs, taking on a case that addresses a core component of his administration’s economic policy. This expedited appeal seeks to overturn a lower court’s finding that the administration unlawfully imposed numerous import taxes, including those against China, Mexico, and Canada, raising fundamental questions about the President’s authority to levy emergency tariffs without explicit congressional approval. The tariffs are set to remain in effect while the Court considers the case, with arguments scheduled for the first week of November and a decision anticipated by the end of June.

Legal Challenge Origins

The legal challenge stems from a divided decision issued in late August by a federal appeals court in Washington. That court determined that President Trump had exceeded his authority by relying on the International Emergency Economic Powers Act to implement the tariffs. The appeals court emphasized that the power to impose taxes is constitutionally vested in Congress.

Economic and Constitutional Implications

The case places a significant aspect of the American economy directly before the conservative-leaning Supreme Court. It directly questions the scope of presidential power in economic policy, particularly regarding the imposition of trade barriers.

Expedited Review and Tariff Collections

President Trump’s administration requested an expedited review from the Supreme Court, citing the considerable uncertainty surrounding the fate of collected duties. The government argued that delaying a decision until June could lead to substantial disruption, given the estimated $750 billion to $1 trillion in tariffs already collected.

According to figures from US Customs and Border Protection, tariff collections for the 2025 fiscal year stood at approximately $475 billion as of August 24. Of this total, $210 billion originated from the specific tariffs currently under legal challenge.

Outlook

The Supreme Court’s decision to fast-track this appeal underscores the critical nature of the legal and economic questions at stake. The outcome will not only determine the legality of President Trump’s tariff policies but also set a precedent for the balance of power between the executive and legislative branches concerning trade and emergency economic measures.