The U.S. Supreme Court is hearing a landmark case on whether Donald Trump exceeded his authority by using a 1977 emergency law the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on nearly all U.S. trading partners. Lower courts ruled that Trump’s move violated congressional authority, which traditionally controls taxes and tariffs.
Why It Matters
The case could redefine the limits of presidential power in economic policy and reshape U.S. trade relations. A ruling against Trump could curb the executive branch’s ability to invoke emergency powers for trade wars. If upheld, it would give Trump and future presidents vast latitude to act unilaterally on global commerce, with potential trillions of dollars at stake.
Trump Administration: Defends the tariffs as a lawful use of IEEPA to “regulate” imports in national emergencies. Treasury Secretary Scott Bessent will attend arguments.
Challengers: Twelve Democratic-led states and several small businesses argue the tariffs were unconstitutional and economically harmful.
Critics: Warn that the Supreme Court’s conservative majority risks further eroding checks on presidential power.
Trump: Warned on social media that striking down the tariffs could lead to the “ruination” of the nation.
What’s Next
The justices’ decision expected in the coming months will set a precedent for how far presidents can go in invoking emergency powers for economic and foreign policy actions. The outcome will have major implications for the global trade order and U.S. constitutional balance of power.
With information from Reuters.
