Trump’s Tariffs Vs Supreme Court: What’s next?

On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit delivered a 7-4 decision affirming a lower court's judgment: the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. Judges ruled that although IEEPA grants broad powers to the president during emergencies, it does not authorize the imposition of tariffs or duties, which remain a distinct power reserved for Congress.

How it started

The case, -”V.O.S. Selections, Inc. v. Trump” originated in May when the U.S. Court of International Trade held that using emergency authority to impose tariffs was unconstitutional. The appeals court upheld that logic, emphasizing that Trump’s “Liberation Day” tariffs—and those targeting Canada, Mexico, and China under “fentanyl‐related” justifications—overstepped legal bounds.

However, the court stayed its ruling until October 14, giving the administration time to seek relief from the Supreme Court.

The Trump administration is taking the case to the Supreme Court, requesting an expedited review. In its filing, it argues that vacating the tariffs now would “unilaterally disarm the United States” and threaten ongoing negotiations and economic frameworks.

Trump’s Reaction

President Trump responded forcefully—warning that without tariffs, the U.S. would face economic ruin and that the court’s decision was a “total disaster for the country.” On social media, he labeled the ruling as partisan and asserted that "ALL TARIFFS ARE STILL IN EFFECT!"

As businesses watch this unfold, the decision will shape how future presidents—and courts—approach trade, national emergencies, and executive authority. A Supreme Court ruling could either reaffirm Congress’s central role or drastically alter the landscape of U.S. trade policy.

What This Means

Tariffs remain in effect, for now - but may be reversed or refunded depending on how the legal appeal unfolds. Clients should stay informed, consult legal counsel, and prepare for shifts in import strategy and cost modeling.

The Justice Department seeks a preliminary decision by September 10, with a hearing in November, though the Court has not yet docketed the case. If accepted, a final ruling might come in early 2026.