US Supreme Court to urgently review legality of Trump tariffs

The US Supreme Court said it will quickly review the legality of most of President Donald Trump’s tariffs, which have become the basis of his trade policy.

The justices asked the government, business associations and states to submit their comments in the case by September 19, and the hearing is scheduled for the first week of November, The Washington Post reported.

The case involves the Trump administration asking to overturn an appeals court ruling that the president could not impose tariffs under the 1977 IEEPA law, which gives him emergency economic powers.

The tariffs, which Trump began imposing in February, were justified by a series of emergencies under the IEEPA law. A number of business associations and state governments challenged the tariffs, calling them an “usurpation of power.” They argue that the IEEPA does not authorize the president to impose tariffs, that there is no proper national emergency, and that Trump’s actions violate the separation of powers and the “important issues” doctrine, which requires a clear congressional mandate for decisions with significant economic or political impact.

A panel of the Court of International Trade in May sided with the plaintiffs, and last month a majority of the appeals court found that the president had exceeded his authority, while staying the ruling pending an appeal to the Supreme Court.

As of early August, the effective rate of import tariffs on the United States was approaching 19%, the highest level since the Great Depression, and that the higher import prices could cost the average household about $2,400 a year.

The White House insists that Trump is acting within the law. At the same time, officials warn that if the case is lost, the government could face having to return up to $1 trillion in collected tariffs.

The Supreme Court has consolidated several cases, including a lawsuit by two educational toy makers who say the tariffs are forcing up prices and jeopardizing sales. Even if they lose, the president can try to impose similar measures under other trade laws, but that will take time and procedures.

Trump has publicly linked the tariffs to combating fentanyl, restoring manufacturing and preserving jobs, but opponents point to market volatility, inflation risks and unpredictability for businesses.

Tags: USA, duties