Major U.S. companies largely stayed on the sidelines as the Supreme Court took up Donald Trump’s sweeping tariff program, leaving small businesses to lead a high-stakes challenge that could redraw the limits of presidential power and reset trade policy.
What Happened
The Supreme Court heard more than two hours of arguments on November 5, 2025, over whether the International Emergency Economic Powers Act allows a president to impose broad import tariffs and, if so, whether that delegation of authority is constitutional. The consolidated cases were brought by importers including Learning Resources, an Illinois toymaker, and V.O.S. Selections, a New York wine distributor. Several justices pressed the government’s claim that emergency powers cover tariffs, a tool the Trump administration says is essential for trade and national security. Earlier in the litigation, lower courts found the program unlawful but kept the duties in place while appeals proceed.
Who’s Leading The Fight
The plaintiffs’ roster is dominated by smaller firms that say the levies have driven up costs and uncertainty. By contrast, No major corporations filed briefs supporting the challenge. Instead, industry groups such as the U.S. Chamber of Commerce weighed in, while many large companies pursued carve‑outs or exemptions rather than a public courtroom role. Trump, who once signaled he might attend the hearing, ultimately did not; his treasury secretary appeared on the administration’s behalf to underscore the case’s significance.
Why It Matters
The ruling could reshape executive power over trade and determine whether importers are owed substantial refunds from duties collected under the emergency program. Government data cited in court filings suggest the total could approach $90 billion. Potential refunds could approach $90 billion, and a decision limiting presidential tariff authority would reverberate across supply chains, prices, and future negotiations with allies and rivals.
What’s Next
The justices are expected to decide the case by the end of the Court’s current term next year. In the meantime, the tariffs largely remain in effect. A prior request to fast‑track the dispute to the Supreme Court was rejected, ensuring the challenge moved through the normal appellate track before this week’s arguments.
Sources
- Mystery conservative donors bankroll opposition to Trump’s tariffs — The Washington Post (November 4, 2025)
- Supreme Court appears skeptical of legality of most of Trump’s tariffs — The Washington Post (November 5, 2025)
- US Supreme Court declines to speed up decision on taking up fight over Trump tariffs — Reuters (June 20, 2025)
- Trump’s not going to the Supreme Court hearing on tariffs. But his treasury secretary will be there — Associated Press (November 4, 2025)
No Comments Yet
Let us know what you think