Last week, the US Supreme Court deferred its ruling on whether President Donald Trump had overstepped his presidential powers by using emergency laws to levy sweeping import duties on trade partners, including India and China, among others. Now all eyes are on the SCOTUS – as it prepares to deliver another ruling – with major legal disputes pending, including a test of the legality of Trump's tariff regime.
Trump claimed it would be a “complete mess” if the Supreme Court were to strike down his tariffs – a remark that signalled his unease over the impending decision.
The US Supreme Court's ruling would determine whether Trump acted within his statutory authority as president and whether the tariffs can legally stand.
Multiple reports mentioned that the tariffs would be ruled unconstitutional, at least in part, citing experts.
A report by Business Times mentioned that 27% of traders believe the US Supreme Court will side with Trump’s decision, while the remaining 73% are betting against it, citing Polymarket, a blockchain-based prediction platform.
The US Supreme Court is set to release its rulings at approximately 10:00 a.m. ET, today, Wednesday, at 8:30 PM IST, on the same day.
The court, however, does not announce in advance which rulings it intends to issue. It issued one ruling last Friday, but did not act in the tariffs case.
Trump had slapped sweeping tariffs on almost all of America's trading partners – invoking the International Emergency Economic Powers Act (IEEPA).
The IEEPA is a 1977 law that allows the US President to regulate economic transactions during a declared national emergency. The Trump administration had argued that persistent trade deficits, unfair trade practices and supply-chain vulnerabilities constituted an economic emergency.
US importers and trade associations pushed back, arguing that IEEPA does not give the US president the reins to levy broad-based import tariffs – only Congress can do that, as per the US Constitution.
Last year, lower courts had already ruled against the government, holding that the emergency law had been stretched beyond its intended purpose. The tariffs, however, remained in force while the administration appealed.
Curated by James Chen
