The US Supreme Court is set to hear two arguments on 5 November on whether President Donald Trump has the legal authority to impose sweeping global tariffs under the Emergency Economic Powers Act (IEEPA).
Trump invoked the IEEPA in April after declaring the country’s trade deficit a national emergency, saying it allowed him to apply his “Liberation Day” tariffs on more than 90 countries.
In response, several small businesses, including Illinois-based toymaker Learning Resources and a group of five firms led by New York City wine importer V.O.S. Selectives, launched separate lawsuits against the government in the US Court of International Trade, which ruled that the tariffs were illegal.
That ruling was upheld by the US Court of Appeals on 29 August, but the court allowed the tariffs to remain in effect as the government prepared its appeal to the Supreme Court.
The plaintiffs argue that the Trump administration has no authority to issue global tariffs without congressional approval, according to the Liberty Justice Center, which represents V.O.S. Selectives and four other small businesses.
“No one person should have the power to impose taxes that have such vast global economic consequences,” Jeffrey Schwab, senior counsel at the Liberty Justice Center, said in a statement earlier this year.
“The Constitution gives the power to set tax rates – including tariffs – to Congress, not the president,” Schwab added.
The companies claim they have been “severely harmed by the tariffs”, which highlights the “human and economic toll of unchecked executive power”.
The tariffs, ranging from 10% to 50%, came into effect on 7 August after months of multiple reversals and market chaos. Tariffs are taxes that the government collects from US businesses that import goods, which are typically passed down to consumers in the form of higher prices.
According to estimates by the Chamber of Commerce, the largest business association in the US, the country’s 236,000 small business importers now face an annual tariff tax bill of US$202bn.
However, in a post on Truth Social on 3 November, Trump said the Supreme Court case on tariffs is “one of the most important in the history of the country”.
“If a president was not able to quickly and nimbly use the power of tariffs, we would be defenceless, leading perhaps even to the ruination of our nation,” he added.
According to The Guardian, the Supreme Court has until the end of its term in July 2026 to issue a ruling on the case. However, the judges are expected to deliberate for several weeks before issuing a ruling, the Financial Times reported.