The Trump administration petitioned the U.S. Supreme Court to swiftly uphold the president’s sweeping authority to impose tariffs, after a federal appeals court ruled that many of the levies were unlawful under existing law.
The emergency filing comes after the U.S. Court of Appeals for the Federal Circuit concluded that most of former President Donald Trump’s global tariffs exceeded the powers granted under the 1977 International Emergency Economic Powers Act (IEEPA). While the appellate court allowed the tariffs to remain in effect temporarily, it found that Trump had relied on a law designed for emergency national security threats, not for restructuring U.S. trade policy.
Despite the setback, Solicitor General D. John Sauer urged the justices to intervene promptly. In a petition submitted electronically late Wednesday and expected to be formally docketed on Thursday, Sauer asked the Court to hear arguments in early November.
“That decision casts a pall of uncertainty upon ongoing foreign negotiations that the President has been pursuing through tariffs over the past five months, jeopardizing both already negotiated framework deals and ongoing negotiations,” Sauer wrote. “The stakes in this case could not be higher.”
High Stakes for Businesses and Trade Policy
The tariffs—central to Trump’s “America First” trade strategy—have drawn criticism from U.S. businesses, particularly small enterprises dependent on imports. Jeffrey Schwab, senior counsel at the Liberty Justice Center, which represents several companies challenging the levies, said the economic toll has been severe.
“These unlawful tariffs are inflicting serious harm on small businesses and jeopardizing their survival,” Schwab said. “We hope for a prompt resolution of this case for our clients.”
The businesses have already secured two significant legal victories: once in a trade-focused federal court, and again with a 7–4 ruling from the Federal Circuit. Their lawsuits argue that Trump’s tariffs—imposed in a rapid and often unpredictable manner—disrupted global markets, strained U.S. alliances, and fueled inflationary pressures at home.
Billions at Stake
According to government data, tariff revenues reached $159 billion by late August 2025, more than double the collections from the same period the previous year. The administration warned that if the Supreme Court invalidates the tariffs, the U.S. Treasury could be forced to refund large sums to importers, potentially dealing a heavy fiscal blow.
The appeal also raises broader constitutional questions. While the Constitution vests Congress with the exclusive authority to levy taxes and tariffs, decades of legislation have gradually delegated significant trade powers to the executive branch. Trump has aggressively exploited this gray area, using tariffs not just as economic tools but as leverage in negotiations with the European Union, Japan, Canada, Mexico, and China.
Limits of the Appeals Court Ruling
The Federal Circuit’s decision directly concerned two sets of import taxes—those announced in February and April 2025, targeting goods from Canada, China, and Mexico. However, other Trump tariffs, such as duties on foreign steel, aluminum, and automobiles, were not addressed by the ruling. Similarly, the tariffs Trump imposed on China during his first presidential term, which President Joe Biden later retained, remain unaffected.
The majority on the Federal Circuit held that IEEPA does not authorize the president to impose tariffs unilaterally, as this would encroach on Congress’s constitutional role. The dissenting judges, however, argued that the statute empowers the president to regulate importation during declared emergencies without explicit congressional approval.
The Road Ahead
The Supreme Court, which Trump reshaped significantly during his first term, now faces a pivotal test of presidential trade authority. If the justices agree to hear the case this fall, the ruling could determine not only the fate of Trump’s current tariffs but also set limits—or expand—executive power over U.S. trade policy for decades to come.
For now, both businesses and policymakers remain in limbo. The outcome could reverberate far beyond Washington, affecting global supply chains, international trade relations, and the financial stability of small firms caught in the crossfire of tariff battles.
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