A Trump Supreme Court tariff defeat would add to trade uncertainty

6/11/2025 15:24

The U.S. Supreme Court's tough questioning of President Donald Trump's global tariffs fueled increased speculation that they will be struck down, but raised the specter of additional chaos as he is widely expected to shift to other trade tactics in the wake of an adverse ruling.



On Wednesday during oral arguments, Supreme Court justices cast doubt on Trump's authority to impose tariffs under the 1977 International Emergency Economic Powers Act (IEEPA), which contains no references to tariffs - only language on regulating imports during national emergencies declared by the U.S. president.



"Based on the questions posed by the justices, the IEEPA tariffs appear to be in jeopardy," said Damon Pike, a principal with BDO USA's customs and trade services practice.



He added that all the court's justices, except Samuel Alito and Clarence Thomas, "seemed skeptical that IEEPA gives President Trump the power to levy unlimited tariffs on every product imported from every country around the world."



But Pike said if the Trump administration loses, it will simply invoke other trade laws, a view widely shared by trade lawyers, senior Trump administration officials, importing companies and analysts.