President Donald Trump has asked the US Supreme Court to overturn a recent appellate court ruling that declared many of his sweeping tariffs illegal. The case raises fundamental questions about the limits of presidential power in trade policy and could have far-reaching economic and diplomatic consequences.
What Did the Lower Court Decide?
Last week, the US Court of Appeals for the Federal Circuit ruled 7-4 that the tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA) exceeded the president’s authority. The court emphasized that setting tariffs is a “core Congressional power” and that the IEEPA does not explicitly grant the president this power.
The tariffs in question were introduced after Trump declared an economic emergency in April, citing trade imbalances that he argued harmed domestic manufacturing and national security.
Why Is Trump Appealing?
In a petition filed late Wednesday, the Trump administration urged the Supreme Court to intervene quickly, warning that the lower court’s decision has disrupted sensitive trade negotiations and created legal uncertainty.
Solicitor General John Sauer wrote:
“The stakes in this case could not be higher… The erroneous decision has disrupted highly impactful, sensitive, ongoing diplomatic trade negotiations, and cast a pall of legal uncertainty over the President’s efforts to protect our country.”
If the Supreme Court declines to hear the case, the ruling could take effect on 14 October, potentially forcing the US to refund billions in tariffs collected.
What Tariffs Are at Stake?
The tariffs include a baseline 10% levy on imports from over 90 countries, as well as “reciprocal” tariffs aimed at correcting trade imbalances. The appellate court’s ruling also invalidated tariffs on Canada, Mexico, and China, which Trump justified as necessary to combat drug imports.
However, the decision does not affect other duties, such as those on steel and aluminum, which were imposed under different presidential authority.
Who Is Challenging the Tariffs?
Small businesses and a coalition of US states have filed lawsuits opposing the tariffs, arguing they cause serious harm and threaten business survival. Jeffrey Schwab of the Liberty Justice Center said:
“These unlawful tariffs are inflicting serious harm on small businesses and jeopardising their survival. We hope for a prompt resolution of this case for our clients.”
What Could This Mean for US Trade Policy?
The Supreme Court’s ruling will clarify the extent of presidential power in imposing tariffs without explicit congressional approval. A decision against Trump could limit future presidents’ ability to use emergency powers for trade actions, while a ruling in favor could reinforce executive authority in economic and foreign policy.
As the case unfolds, businesses, policymakers, and international partners will be watching closely to see how America’s trade landscape evolves.