A ruling for plaintiffs could force Washington to return billions in import taxes

The US Supreme Court will begin hearing arguments Wednesday in a landmark case challenging President Donald Trump’s use of emergency powers to impose sweeping tariffs, in a dispute that could redefine presidential authority over trade.

A coalition of small businesses and several US states claims that many of the tariffs introduced under the International Emergency Economic Powers Act (IEEPA), a 1977 law enabling sanctions against “unusual and extraordinary” threats, were unlawful and should be invalidated.

A ruling in favor of the plaintiffs could force the federal government to refund a portion of the estimated $90 billion in import taxes collected since the tariffs were introduced.

Trump invoked emergency powers in February to impose tariffs on goods from China, Mexico and Canada, later expanding the measures in April to nearly all trading partners. He described the US trade deficit as a “national emergency.”

In August, Trump warned on his Truth Social platform that invalidating the tariffs would “destroy” the US economy. Over the weekend, he said he would not attend the court hearing to avoid creating a “distraction,” warning that a loss in the case would “weaken” the US and hinder future trade negotiations.

Critics argue that while the IEEPA allows the president to regulate trade, it does not authorize the imposition of tariffs, which they say fall under Congress’ constitutional authority.

The case follows a series of lower court rulings. In August, a federal appeals court ruled 7-4 that Trump exceeded his legal authority. A separate decision on Aug. 29 also concluded the tariffs were improperly enacted without congressional approval.

The Supreme Court’s decision, expected early next year, could carry major implications for US trade relations with the EU and other global partners. (AA)