Key Points
- The Supreme Court is expected to rule on the legality of President Trump’s global tariffs on Friday.
- The case centers on his use of a 1977 law intended for national emergencies (IEEPA).
- During the November arguments, the justices appeared skeptical of the administration’s position.
- Companies like Costco are suing for refunds in case the tariffs are deemed unlawful.
This Friday could be a massive day for President Trump’s trade agenda. The U.S. Supreme Court is set to release a new batch of rulings, and one of them could determine the fate of its most sweeping tariffs. The court will decide whether the President has the legal authority to impose these taxes on countries worldwide.
The case centers on the International Emergency Economic Powers Act (IEEPA), which is intended to be used only during national emergencies. Trump invoked this law to justify his “Liberation Day” tariffs, which have affected trade partners worldwide.
When the court heard arguments in November, justices from both the liberal and conservative wings seemed skeptical of the administration’s broad use of this law. The outcome is now being closely watched by businesses and governments everywhere.
Companies like Costco have already filed lawsuits seeking refunds for the millions they’ve paid in duties if the court rules against the President.
Trump himself has expressed significant concern about the ruling. He has said that losing the ability to impose tariffs on other countries would be a “terrible blow” to the U.S. and that the tariffs have made the country “far stronger and more respected than ever before.”
Even if the court strikes down this specific use of the IEEPA, the administration has said it has other “options.” Treasury Secretary Scott Bessent admitted that other laws are more “cumbersome,” but he insisted they could still be effective.
For now, everyone is holding their breath, waiting to see if the Supreme Court will hand the President a major victory or a significant defeat in his ongoing trade war.
