by Just the News
The Supreme Court has not yet issued its ruling, but legal experts expect a decision as early as January 2026. the ruling will address challenges to President Trump’s tariff program.
The Supreme Court is preparing to decide one of the most consequential trade law cases in decades: a challenge to President Donald J. Trump’s sweeping tariff program, which has reshaped global trade and raised fundamental questions about executive power.
The Constitution gives Congress the power to “lay and collect Taxes, Duties, Imposts and Excises” and to “regulate Commerce with foreign Nations.” Historically, major tariff decisions have flowed through legislation. But at the start of his second term, President Trump bypassed the traditional legislative process and issued a series of executive orders imposing broad tariffs. Congress also has frequently delegated to the President much of this responsibility.
The relevant statute authorizes: "[T]he President to enter into bilateral trade agreements where such agreements would better serve U.S. economic interests than agreements undertaken on a multilateral basis," and "Directs the President to seek reform of the General Agreement on Tariffs and Trade (or through negotiation of other agreements) to establish principles promoting the development of an open, nondiscriminatory and fair world economic system."
The Supreme Court heard oral arguments in November of this year, in the case which is captioned Learning Resources, Inc., et al. v. Donald J. Trump.
Trafficking Tariffs
The first set of measures, announced in early February, are known as the “trafficking tariffs.” These tariffs targeted imports from Canada, Mexico, and China on the ground that those countries had failed to adequately curb the flow of fentanyl into the United States.
A second and more expansive round followed on April 2, 2025—a date that President Trump dubbed “Liberation Day.” Via Executive Order 14257, the administration imposed a baseline 10 percent tariff on imports from nearly every country in the world, with higher rates ranging from 11 to 50 percent for dozens of nations. The President cited large and persistent trade deficits as an “unusual and extraordinary threat to the national security and economy of the United States.”
As legal justification for the tariffs, President Trump declared a national emergency related to the trade deficit and invoked the International Emergency Economic Powers Act (IEEPA) of 1977. The statute, rarely used in the trade context, grants the president authority to “regulate [...] importation” in response to extraordinary foreign threats. But the law does not explicitly mention tariffs or duties.
Initial Legal Challenges
The President’s tariffs quickly sparked a wave of lawsuits. Dozens of small and medium-sized businesses as well as coalitions of states and industry groups filed challenges. They argued that the tariffs exceeded the president’s statutory authority and encroached on Congress’s constitutional role.
In May 2025, the U.S. Court of International Trade ruled that the administration had overstepped the bounds of the IEEPA. The court explained that long-standing trade imbalances and foreign manufacturing practices did not constitute the kind of emergency the statute was designed to address.
The U.S. Court of Appeals for the Federal Circuit affirmed that decision, concluding that IEEPA’s authorization to “regulate importation” did not clearly empower the president to impose sweeping tariffs without explicit congressional approval. The appeals court emphasized that actions of such “vast economic and political significance” require unmistakable authorization from Congress.
Meanwhile, in a different case, the U.S. District Court for the District of Columbia held that IEEPA does not authorize the President to unilaterally impose tariffs and granted the challengers a preliminary injunction. That ruling was appealed to the D.C. Circuit.
The Case Before SCOTUS
Before the D.C. Circuit could rule on the merits, the Supreme Court of the United States agreed to review the President’s tariffs. It consolidated the two related cases and set an expedited briefing schedule. In their forthcoming decision in Learning Resources, Inc. v. Trump, the justices will decide several significant legal questions.
First, the Court will examine whether IEEPA—a decades-old statute traditionally used for targeted sanctions—can lawfully justify President Trump’s tariffs. While IEEPA permits the president to regulate imports during a national emergency, it does not explicitly mention tariffs.
If the Court finds that IEEPA does authorize the tariffs, it may also consider whether granting the president unilateral authority in this way constitutes an unconstitutional delegation of legislative power.
The Court might further address whether the D.C. District Court was the proper venue for the challenge. Under federal law, the Court of International Trade has “exclusive jurisdiction” over civil actions against the government that arise from U.S. laws concerning “tariffs, duties, fees, or other taxes on importation for reasons other than revenue raising” or matters related to their enforcement. 28 U.S.C. § 1581(i)(1)(B) and (D). The government argues that the D.C. District Court was not the correct forum.
Oral arguments were heard on November 5, and the outcome remains uncertain. Several justices —including some appointed by President Trump — expressed skepticism about the administration’s broad interpretation of executive authority.
Potential Consequences
A ruling against the government could have sweeping economic implications. While the tariffs remain in effect during the litigation, a decision declaring them unlawful could trigger massive refund claims by importers. Analysts estimate that duties collected since 2025 could total anywhere from hundreds of billions to more than a trillion dollars.
Businesses have already restructured supply chains, cut costs, and shifted production in response to the tariffs. Critics describe the measures as an “unexpected tax” on small businesses, while supporters warn that invalidating them could destabilize the economy and undermine national security.
Politically, the case highlights ongoing tensions over executive authority in trade policy. A decision upholding the tariffs would significantly expand presidential power, setting a powerful precedent for future crises. A ruling against the administration would reinforce congressional primacy in trade measures and curb executive reach.
Tariffs are likely here to stay
Whether the President wins or loses, tariffs might be here to stay. For months, senior administration figures have downplayed the possibility of losing at the Supreme Court. Treasury Secretary Scott Bessent recently said the administration could reimpose similar measures under alternative statutory authorities, such as Sections 301, 232, or 122 of various trade laws.
National Economic Council Director Kevin Hassett echoed that sentiment, saying the White House has “backup plans” if the current tariffs are struck down. “We’re going to win either way. The American people are going to win either way,” Hassett said.
Early critics warned that President Trump’s tariffs would lead to soaring inflation. But several months later, the prices of goods and services across the United States have remained relatively stable.
Inflation as measured by the Consumer Price Index (CPI), which tracks the prices consumers pay for a broad array of goods and services, has slowed significantly, rising about 2.7 percent over the 12 months ending in November 2025. That pace is below what many economists and market forecasts had expected, and it represents one of the lowest annual inflation readings in years, particularly compared with the double-digit jumps seen during the pandemic era.
President Trump said in a post on Truth Social, that markets and retirement accounts had reached record highs while “Inflation, Prices and Taxes are DOWN,” and urging the justices to “do the right thing for America.”
The Supreme Court has not yet issued its ruling, but legal experts expect a decision as early as January 2026.
Just the News
Source: https://justthenews.com/government/courts-law/supreme-court-ruling-trumps-tariff-policies-expected-new-year
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