Recent reports confirm the U.S. Supreme Court will hear arguments in November 2025 on the legality of President Donald Trump's use of emergency powers to impose broad tariffs. A federal appeals court had previously ruled that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA). Despite the potential for a ruling against the president, it is unlikely to change the existing risk of building products outside the U.S. due to several factors.
Reasons tariffs are likely to remain a risk
Trump's other tariff authorities. The Supreme Court case only concerns tariffs implemented under IEEPA. Trump has several other legal avenues for imposing tariffs, such as Section 232 of the Trade Expansion Act of 1962, used for steel, aluminum, and auto tariffs. These other tariffs would remain in effect even if the Supreme Court rules against the IEEPA-based ones.
Alternative tariff mechanisms. In the event of an unfavorable ruling, the administration could use existing laws to impose new, targeted tariffs. These alternative measures might not be as broad or swift as those under IEEPA, but they would still create new costs and uncertainty for companies with overseas supply chains.
Political commitment to tariffs. Trump has repeatedly expressed his commitment to tariffs as a central part of his economic policy and has indicated he would seek other ways to implement them if needed. He has repeatedly described his tariffs as vital for protecting U.S. jobs and has even suggested they could generate revenue to pay down national debt.
Refunds would not help companies avoid future tariffs. Even if the Supreme Court orders the refund of previously collected tariffs, which could amount to billions of dollars, it would not change the policy landscape moving forward. Companies would still face the prospect of future tariffs and trade disruptions, making overseas manufacturing a continuing risk.
Disruption of global trade flows. The threat of tariffs has already led manufacturers to rethink their supply chains. A ruling in the Supreme Court is unlikely to suddenly reverse this trend, as companies seek stability and resilience in their operations. One analysis found that the uncertainty around Trump's tariffs has already put manufacturers on the defensive and discouraged investment.
Why the Supreme Court case is still significant
While the case may not end the risk of tariffs, it is a significant legal challenge that addresses the limits of presidential power.
Separation of powers. The case will clarify whether IEEPA grants the president nearly unlimited authority to impose tariffs in a "national emergency," or if Congress retains its constitutional power to levy taxes and duties.
Major questions doctrine. Lower courts cited the Supreme Court's "major questions" doctrine, which requires explicit congressional authorization for executive actions of vast economic and political significance. The Court's decision will apply this doctrine to the use of presidential emergency powers.
Impact on trade negotiations. The outcome could affect ongoing and future trade negotiations, as other countries watch to see if Trump's authority to impose tariffs is curtailed.
“The Supreme Court agreed Tuesday to quickly hear the Trump administration's bid to save its sweeping global tariffs, setting the stage for a final ruling on a cornerstone of the president's economic agenda.
The court in a brief order said it would hear the case in early November, a schedule that could deliver a ruling before the end of the year.
It will be the first time the high court decides on the legality of a major policy from President Trump's second term. The justices have at times weighed in by allowing or blocking his actions on a temporary basis, but no case has been litigated to a conclusion so far.
The tariffs, which were dealt a string of defeats in the lower courts, are set to remain in place until the case is decided.
The Trump administration had asked the Supreme Court to hear the challenge on an expedited schedule, saying the legal uncertainty was already hurting the White House in its continuing trade negotiations.
A wine importer and other small businesses that challenged the tariffs also asked for swift resolution, saying they were "suffering severe economic hardships as a result of the price increases and supply chain interruptions caused by the tariffs."
The trade case raises little-explored questions about the president's unilateral power over the economy. Trump has said a 1977 law gives him broad powers to impose baseline levies of 10% on virtually every nation, and much higher rates for countries that don't cut deals with the U.S., as well as an additional set of tariffs for Canada, China and Mexico.
Several courts so far have found that the law, the International Emergency Economic Powers Act, doesn't authorize Trump to do these things.” [1]
1. U.S. News: Supreme Court To Decide If Tariffs Are Legal. Radnofsky, Louise. Wall Street Journal, Eastern edition; New York, N.Y.. 10 Sep 2025: A5.
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