Trump’s administration heads to Supreme Court over tariffs

(MENAFN) A potentially historic clash over Donald Trump’s trade policies is set to reach the US Supreme Court, as the administration faces challenges from small businesses and several states claiming that many of the tariffs it imposed are unlawful and should be overturned.

Should the justices rule against the government, Trump’s sweeping trade measures, including the global tariffs first announced in April, could unravel, potentially forcing the administration to return billions collected through import taxes. The court’s final decision will follow extensive review and deliberation by the justices, culminating in a vote.

Trump has framed the dispute as a matter of national significance, warning that a loss could weaken US bargaining power and compromise national security. “I wanted to go so badly... I just don't want to do anything to deflect the importance of that decision,” he said. “It's not about me, it's about our country.” He previously claimed a defeat would leave the US “weakened” and in a “financial mess” for years.

Businesses impacted by the tariffs are feeling severe effects. Learning Resources, a toy company reliant on overseas manufacturing and a plaintiff in the case, estimates $14 million in tariff costs this year—seven times its 2024 payments. CEO Rick Woldenberg described the disruptions: “They've thrown our business into unbelievable disruption,” noting the company had to relocate manufacturing for hundreds of products.

Others, like Bill Harris of Cooperative Coffees, hope the tariffs will be struck down but are bracing for the possibility they remain. His company, which imports coffee from multiple nations, has already paid around $1.3 million in tariffs since April. “We are hopeful that this is going to be ruled illegal but we're all also trying to prepare that it's setting in,” he said.

The case also raises broader questions about presidential authority. Legal experts note that a Trump-favoring verdict could expand executive power for current and future administrations.

The tariffs in question were imposed under the 1977 International Emergency Economic Powers Act (IEEPA), a law the White House relies on for its speed and flexibility. By declaring emergencies, the president can issue immediate orders while bypassing traditional, lengthier processes.

Trump first applied the law in February to levy tariffs on goods from China, Mexico, and Canada, citing drug trafficking as an emergency. He invoked it again in April to impose duties between 10% and 50% on imports from nearly every country, arguing that the US trade deficit represented an “extraordinary and unusual threat.” The tariffs were phased in over the summer while Washington pressed nations for trade agreements.

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