The US Supreme Court is reviewing the legality of President Trump’s broad tariffs under the IEEPA.
The US Supreme Court is currently examining the legality of sweeping tariffs imposed by President Donald Trump as of 5 November 2025, a case that represents a significant test of presidential power and carries major implications for the global economy.
Both conservative and liberal justices have expressed skepticism regarding the administration’s legal grounds for the tariffs, focusing on whether the President has overstepped his authority and encroached upon powers reserved for Congress.
At the heart of the legal debate is President Trump’s use of the International Emergency Economic Powers Act (IEEPA) of 1977. This law grants the president authority to regulate international commerce during a declared national emergency. The administration declared the USD 1.2 trillion US trade deficit in 2024 an emergency, a move that has drawn sharp criticism.
Critics, including several US states and affected businesses, argue that this is an unprecedented application of a law typically used for targeted sanctions against adversarial nations, not for broad, global tariffs. The US Constitution explicitly grants Congress the power to levy taxes and tariffs, making the executive branch’s unilateral action a point of constitutional contention.
This case is more than a legal technicality and has profound economic and political consequences. A ruling against the administration could unwind a central component of its economic and foreign policy.
However, administration officials have indicated that even if the Supreme Court strikes down the use of IEEPA for this purpose, they are prepared to utilise other legal avenues to maintain the tariffs. These alternatives include Section 122 of the Trade Act of 1974, which allows for temporary tariffs to address trade imbalances, and Section 338 of the Tariff Act of 1930, which permits tariffs against countries that discriminate against US commerce.
The message from the administration is clear: the tariffs are expected to remain in place one way or another.
