U.S. Supreme Court to hear challenge to Trump’s global tariffs on November 5

The U.S. Supreme Court has set November 5, 2025, as the date it will hear arguments over the legality of Donald Trump’s sweeping global tariffs. The case will test the limits of presidential power and could have major economic consequences.

The tariffs, which are still in place, have served as the backbone of Trump’s trade and foreign policy decisions since he secured reelection in January. He enforced them by invoking emergency powers under the International Emergency Economic Powers Act (IEEPA), a statute enacted in 1977.

Critics have said this was an abuse of authority, while the supporters believe it’s a bold defense of American jobs and security.

Courts rule Trump went too far

On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit struck a major blow to Donald Trump’s trade policy. The judges said that the president had overstepped his authority when he ordered the imposition of tariffs at a global level, using emergency powers under a statute known as the International Emergency Economic Powers Act.

The judges emphasized that IEEPA never intended to give presidents unlimited authority over tariffs. Rather, the law was written for limited use in national emergencies related to foreign threats. Previous presidents often deployed it to slap sanctions on or freeze the assets of unfriendly governments. None of them had used it to remake global trade, however.

The court said that Trump went too far in using IEEPA to impose tariffs on various imports. The ruling underscored that Congress, not the president, possesses the constitutional power to regulate trade and lay duties.

The decision came after months of legal wrangling after a coalition of 12 states, led by Democratic attorneys general from New York, Oregon, and Colorado, sued against the tariffs. They said the tariffs lifted consumer costs, wounded local businesses, and disrupted supply chains.

Small businesses also scrambled into the fight, with a number saying their costs had risen with the imposition of the tariffs on imported materials and that they had less room for profit on sales. One of the biggest challengers is Learning Resources, a family-owned toy maker. The company said in court documents that the tariffs significantly increased production costs and jeopardized its survival in a competitive industry.

The tariffs will stay in place while that legal process continues, even though the ruling went against the government. That means American importers will be paying higher duties for the time being. Consumers’ prices rise on various products – from household goods to electronics and toys.

Supreme Court to weigh presidential power

Now, the court will determine whether Trump’s use of IEEPA squares aligns with the law. The tariffs and the balance of power between Congress and the presidency are at stake.

Lawmakers from both parties have urged the administration not to proceed with tariffs. Senator John Cornyn, a Texas Republican and Trump ally, told CNN that changing trade policy in ways that affect Americans is beyond a president’s authority. He said Congress should decide on tariffs, as it traditionally does. Trump argues, however, that national security and financial stability give the president wide powers to act.

A ruling for Trump could greatly expand executive power in economic affairs. Future presidents might employ emergency laws to reshape trade without involving Congress.

If the court comes down against him, it would restrict presidential power and force the U.S. government to refund hundreds of billions of dollars collected in tariffs. That could blow a hole in federal revenue and roil global markets.

Trading partners, already unnerved by the prospect of tariffs, are watching closely. Economists say the uncertainty has contributed to market volatility and weakened investor confidence.

Trump, for his part, has doubled down on his approach, saying tariffs are an important tool to shield U.S. industries, slash trade deficits, and pressure other countries like China, Mexico, and Canada to crack down on the flow of illegal drugs or unfair trading practices.

Just recently, Scott Bessent said that Donald Trump’s sweeping tariffs are likely to pass Supreme Court scrutiny, but warned the Treasury may be forced to return hundreds of billions in tariff revenue if the court rules against the White House.

Speaking on NBC’s Meet the Press, the Treasury Secretary noted he was “confident” Trump’s trade moves would be upheld. Still, he admitted that “we would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” if the court strikes them down. “If the court says it, we’d have to do it,” he added.

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