Donald Trump's tariff battle: US Supreme Court fast-tracks review; presidential power limits questioned

The Supreme Court on Tuesday agreed to take up a fast-track review of the Trump administration’s sweeping global tariffs, setting a November hearing that could decide the fate of one of US President Donald Trump’s most significant economic policies. The justices approved an unusually brisk schedule after a federal appeals court last month struck down much of the program, ruling in a 7-4 decision that Trump unlawfully invoked the International Emergency Economic Powers Act (IEEPA) to impose steep import taxes on major US trading partners. The tariffs, however, will remain in effect during the litigation. Five small businesses and a dozen states had challenged the duties, arguing that Congress — not the president — holds the power to levy taxes. “Congress, not the President alone, has the power to impose tariffs,” said Jeffrey Schwab of the Liberty Justice Center, representing affected enterprises that warn of near-bankruptcy under the duties. The administration countered that the 1977 emergency law gives the president broad authority to regulate imports when national security or the economy is threatened. Solicitor General D. John Sauer warned that the appeals court ruling “casts a pall of uncertainty upon ongoing foreign negotiations that the president has been pursuing through tariffs … jeopardizing both already negotiated framework deals and ongoing negotiations," as quoted by NYT. The stakes are high: Trump has used tariffs both as leverage in trade talks and as a revenue source, with collections reaching £159 billion by late August — more than double last year’s figure. Officials also cautioned that overturning the tariffs could force the Treasury to refund billions, potentially affecting resources earmarked for fentanyl control and support for Ukraine in its war with Russia. The case marks the first time the Supreme Court will hear full arguments on Trump’s expansive use of emergency powers, after previously granting temporary approvals for other policies. With a conservative majority that includes three Trump appointees, the court will now weigh whether presidential authority under IEEPA extends to such far-reaching trade actions — or whether Congress must reclaim the power to tax.