The U.S. Supreme Court has scheduled a hearing in the case against the sweeping tariffs imposed by President Donald Trump for November, the Associated Press reported. The deadline is unusually short by court standards and puts one of Trump's central policies in the spotlight of the highest court in the country, BTA reports.
While the case is ongoing, the tariffs will remain in effect. It reached the Supreme Court after lower courts ruled that most of the imposed tariffs were illegal. Small businesses and individual states that are challenging the rates have also agreed to an expedited procedure, arguing that the import taxes have nearly bankrupted their businesses. They emphasize that under the Constitution, the power to impose tariffs belongs to Congress.
The financial stakes make the case one of the most significant in the Supreme Court. A defeat for Trump would cut the current average effective U.S. tariff rate of 16.3% by at least half and could force the country to recoup tens of billions of dollars, according to a Bloomberg Economics analyst. It could also complicate U.S. trade agreements.
Two lower courts ruled that Trump could not impose the tariffs solely through emergency powers, but an appeals court left the measures in place. The Trump administration has asked the Supreme Court to intervene quickly, arguing that lifting the tariffs would put the country on the “brink of economic disaster.”
The case will be heard by a court that has been cautious about limiting emergency presidential powers. The main issue is whether the expanded interpretation of those powers allows the president to impose tariffs without the explicit approval of Congress. Three of the judges on the conservative-dominated court were nominated by Trump during his first term.
Tariff revenue reached $159 billion by the end of August – more than double the same period a year earlier. U.S. Attorney General D. John Sauer has warned that the court rulings are already affecting the country’s trade negotiations, and any lifting of the tariffs could require the return of some of the taxes already collected. This would jeopardize U.S. efforts to curb fentanyl imports and support for Ukraine.
The case covers two sets of tariffs imposed under a national emergency – those in February and April on imports from Canada, China and Mexico. It does not include tariffs on foreign steel, aluminum and cars, as well as tariffs on China from Trump’s first term, which were maintained by President Joe Biden.