The U.S. Supreme Court has agreed to review the legality of President Donald Trump's extensive tariffs, a significant move that will test the limits of executive power. The justices will hear the case in November, following a request from the Trump administration to expedite the process. This case stems from a lower court ruling that determined Trump overstepped his authority by imposing tariffs under a federal law designed for emergencies.
The tariffs, which affect imports from nearly every country, have been a cornerstone of Trump's economic strategy. The U.S. Court of Appeals for the Federal Circuit ruled on August 29 that the president improperly invoked the International Emergency Economic Powers Act (IEEPA) to impose these tariffs. Despite the ruling, the tariffs remain in effect while the Supreme Court considers the appeal.
The Supreme Court's decision to fast-track the case is unusual and reflects the urgency surrounding the issue. Small businesses and several states have challenged the tariffs, arguing that they were imposed illegally and have nearly driven some businesses to bankruptcy. Two lower courts have found that most of the tariffs were unlawfully enacted, although a divided appeals court has allowed them to remain in place for now.
The Trump administration contends that the president has the authority to regulate imports and that blocking his ability to impose tariffs could lead to severe economic consequences. Solicitor General D. John Sauer stated that the lower court's decisions are already impacting trade negotiations and could hinder efforts to combat issues like the flow of fentanyl and the ongoing conflict in Ukraine.
The case raises critical questions about the balance of power between the presidency and Congress, particularly regarding tariff authority. The Constitution grants Congress the power to levy tariffs, but recent decades have seen a shift in some of that authority to the executive branch. The Supreme Court's conservative majority includes three justices nominated by Trump, which could influence the outcome.
The tariffs in question include those first announced in April and additional ones imposed in February on imports from Canada, China, and Mexico. They do not cover tariffs on foreign steel, aluminum, and autos, nor do they include the tariffs Trump enacted during his first term that have been maintained by President Joe Biden. As the case unfolds, the implications for U.S. trade policy and economic stability remain significant.