The U.S. Supreme Court will take up an appeal of lower court decisions that President Donald Trump's tariffs were illegal, deciding once and for all whether the president has the power to unilaterally declare new taxes on foreign goods on an emergency basis.
According to CNN, "Trump is pressing the justices to overturn a lower court ruling that found his administration acted unlawfully by imposing many of his import taxes, including the 'Liberation Day' tariffs the White House announced in April and tariffs placed this year against China, Mexico and Canada that were designed to combat fentanyl entering the United States. The case puts a major component of the American economy on the conservative court’s docket. And it raises a fundamental question about the power of the president to levy emergency tariffs absent explicit approval from Congress."
Trump originally enacted the tariffs under the International Emergency Economic Powers Act, saying that other countries' trade practices were a grave threat to American security.
Both the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal District ruled that the IEEPA, which does not even mention the word "tariffs," cannot be used as a basis for bypassing congressional authority to lay and collect taxes.
The Supreme Court's decision could have far-reaching implications for the economy, which has seen a significant slowdown as the tariffs have ramped up.
