Last week, the US Supreme Court considered the Trump administration’s appeal of two lower court rulings that struck down the legality of his broad tariff measures – so what is the dispute about?

What’s the issue?

At the centre of the dispute are the so-called “Liberation Day Tariffs”, introduced by President Trump in April under the International Emergency Economic Powers Act (IEEPA). Citing a national emergency driven by the US goods trade deficit, Trump imposed a series of executive orders establishing targeted tariffs on more than 90 countries, alongside a de-facto 10% baseline tariff on imports from nearly every other nation. The legal challenge focuses on whether the president had the authority to impose such sweeping tariffs without congressional approval.

Why is the case with the US Supreme Court?

A Federal Court ruled in May that Trump exceeded the authority granted under IEEPA when imposing most of the tariff increases. The US Court of Appeals upheld this judgment in August, agreeing that the president’s use of emergency economic powers had stretched beyond his limits. The Trump administration has now appealed to the US Supreme Court, seeking to reverse the rulings.

When will there be a verdict?

After hearing oral arguments on November 5th, the Supreme Court has until June 2026 to publish its decision, though most observers expect a ruling by January.

What’s the likely outcome?

It’s impossible to predict. Prior to arguments being heard, this was widely considered a 50/50 case. However, several justices pointedly questioned the government’s argument during the hearing and the consensus amongst political experts is that the verdict is more likely to go against Trump than for him.

What happens if Trump loses?

A defeat would likely send the case back to Federal Court to determine remedies. The US government may need to refund a significant portion of the estimated $100–120 billion collected through the tariffs so far, while numerous trade agreements built on those measures could also be invalidated.

Will Trump have alternative options?

If the Supreme Court upholds the lower courts’ decisions, there is no higher judicial body to appeal to. Trump could attempt to push new tariff legislation through Congress, but that path appears politically unlikely – especially given that emergency powers were originally used to bypass Congress altogether.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.