The US Supreme Court last week reviewed the Trump administration’s challenge to two lower-court decisions that struck down its expansive tariff policy.
At the heart of the dispute are the “Liberation Day Tariffs,” a set of duties enacted under the International Emergency Economic Powers Act (IEEPA). Citing a national emergency linked to the country’s trade deficit, President Trump issued a series of executive orders that levied targeted tariffs on more than 90 nations and added a near-universal 10% tariff on most remaining imports.
The lawsuit focuses on whether the president had the legal authority to impose such wide-ranging tariffs without congressional action.
In May, a federal judge ruled that the administration overstepped the limits of IEEPA in implementing most of these tariffs. The US Court of Appeals affirmed that conclusion in August, finding that the White House’s use of emergency economic powers went well beyond its limits. The administration is now urging the Supreme Court to overturn those rulings.
The justices heard arguments on November 5th. Although the Court has until June 2026 to issue its decision, many observers believe the ruling will come sooner, perhaps by Janiary.
Prior to this latest court hearing, the case was seen as 50/50. However, pointedly critical questioning from several justices has nudged expectations sightly toward a loss for Trump.
If the Supreme Court upholds the lower courts, the case would likely return to the federal bench to sort out remedies. The government may be required to reimburse a large share of the roughly $100–120 billion raised through the tariffs, and policy arrangements built around those duties could be unraveled.
A loss would leave the administration with no judicial options remaining. However, they could seek new tariff authority through Congress, but that’s a politically difficult route given that the original policy was designed to bypass it altogether.