The trajectory of President Donald Trump’s trade policy has been thrown into further doubt after the US Supreme Court delayed a long-awaited ruling on the legality of his sweeping tariff measures.
Importers and financial markets, which had been anticipating clarity in the coming days, now face at least several more weeks of uncertainty. The court’s decision to begin a four-week recess has apparently ruled out a judgment before late February, extending a period of limbo for businesses exposed to the current tariff regime.
Without a decision from the court, firms must continue operating under a framework whose long-term survival remains unresolved. The delay follows months of legal and political tension surrounding the president’s authority to impose broad import duties without congressional approval.
Confusion has been heightened by recent confusing events. A brief announcement of a 10% tariff on British exports amid diplomatic friction linked to Greenland was later withdrawn, briefly unsettling markets and failing to shed light on the broader legal dispute at the heart of the case.
Despite the uncertainty, the administration has made clear it is preparing for all outcomes. US Trade Representative Jamieson Greer has indicated that backup strategies are already in place, suggesting that even if the court invalidates parts of the tariff program, the government would move quickly to reintroduce similar measures using different statutory powers.
President Trump has taken an even more forceful stance, warning that dismantling the tariff structure would trigger economic turmoil. He has argued that reversing the measures would be a prolonged and disruptive process, potentially lasting years and placing strain on both businesses and federal agencies.
The lawsuit, brought by a coalition of small companies and several states, challenges tariffs announced in April, alleging the president exceeded his constitutional authority. While importers say any refunds should be manageable if the court rules against the administration, trade attorneys caution that reimbursement could be slowed by bureaucratic hurdles.
Market forecasts currently put Trump’s chances of winning the case at roughly one in three. Meanwhile, more than 1,000 companies are lining up potential lawsuits as tariff collections climb toward an estimated $130 billion. For now, however, a definitive ruling remains out of reach – and is unlikely to come before next month.