Economy

Supreme Court to Weigh Trump’s Tariffs: Will Emergency Powers Justify Trade Actions?

SCOTUS to hear arguments on Trump’s tariffs on Nov 5, reviewing IEEPA’s use & legality.

byEditorial Staff

September 19, 2025, 10:28 AM

Supreme Court of the United States of America. By Shutterstock.com / Brandon Bourdages.

Executive Summary

The Supreme Court has scheduled oral arguments for November 5 to review the legality of President Trump’s tariffs, which were imposed using emergency powers under the International Emergency Economic Powers Act (IEEPA).

The central question before the court is whether the 1977 IEEPA statute authorizes Trump’s extensive tariffs, marking the first time a president has invoked this act for such a purpose.

The Supreme Court will consolidate appeals from lower court rulings that found the tariffs unauthorized, and Trump’s current tariff policy will remain in effect until the high court issues its final decision.

The Story So Far

The Supreme Court is reviewing President Trump’s unprecedented use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose extensive tariffs, citing national emergencies such as the fentanyl crisis and trade deficits. While IEEPA allows presidents to issue economic sanctions during “unusual and extraordinary threats,” lower courts have ruled that the act does not authorize tariffs, leading to this critical appeal that will clarify the limits of presidential emergency powers in trade.

Why This Matters

The Supreme Court’s expedited review of President Trump’s use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose extensive tariffs carries significant implications for the future of U.S. trade policy. The ruling will not only determine the legality of Trump’s “most significant economic and foreign-policy initiative” but also establish critical precedents regarding the limits of presidential authority to invoke national emergency statutes for economic measures, potentially impacting businesses and the global trade agenda.

Who Thinks What?

President Trump’s administration believes his extensive tariffs are legally justified under the International Emergency Economic Powers Act (IEEPA) and represent a “most significant economic and foreign-policy initiative.”

Small businesses and Democratic-led states argue that President Trump’s tariffs are not authorized by the International Emergency Economic Powers Act (IEEPA).

Lower courts, including the U.S. Court of Appeals for the Federal Circuit and a federal district judge, have previously affirmed that the tariffs were not authorized by IEEPA.

The Supreme Court has scheduled oral arguments for November 5 to review whether President Trump’s use of emergency powers under the International Emergency Economic Powers Act (IEEPA) legally justifies his extensive tariffs. This decision, announced Thursday, follows the justices’ agreement last week to fast-track the appeal, which carries significant implications for the administration’s global trade agenda.

Court Calendar Adjustments

To accommodate the expedited tariff arguments, the justices rearranged their calendar, moving arguments for two other cases. Cases granted at this point in the calendar are typically scheduled for early next year, but the parties successfully advocated for a quicker hearing. The administration has characterized Trump’s tariffs as his “most significant economic and foreign-policy initiative.”

Legal Framework and Invocation

The central question before the court is whether the International Emergency Economic Powers Act (IEEPA) authorizes these tariffs. Enacted in 1977, IEEPA allows the president to issue economic sanctions to counter an “unusual and extraordinary threat” during an emergency. Trump is the first president to attempt to impose tariffs by invoking this statute, citing it in February for levies on Canada, China, and Mexico due to the fentanyl crisis, and again in April over trade deficits for a global baseline tariff.

Prior Judicial Rulings

Last month, the U.S. Court of Appeals for the Federal Circuit affirmed a lower court’s ruling that the tariffs were not authorized by the IEEPA. This lawsuit was originally brought by five small businesses and a dozen Democratic-led states. The Supreme Court also took up a similar petition from other small businesses that had previously won a challenge before a federal district judge in Washington, D.C.

Path Forward

The Supreme Court will consolidate these appeals to settle the issue of the tariffs’ legality. Until a final ruling is issued by the high court, President Trump’s current tariff policy will remain in effect. The upcoming arguments are expected to clarify the scope of presidential emergency powers in matters of trade.