The U.S. Supreme Court has agreed to review the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA). This decision follows a series of lower court rulings that challenge the extent of presidential authority in trade matters, particularly concerning the imposition of tariffs without express congressional approval.
In May 2025, the U.S. Court of International Trade ruled that President Trump exceeded his authority under IEEPA by imposing broad tariffs on imports from numerous countries. The court emphasized that IEEPA does not provide the president unbounded power to impose tariffs, as revenue generation, including the power to lay and collect duties, is a power that the Constitution grants to Congress.
The Trump administration promptly appealed the CIT’s decision to the U.S. Court of Appeals for the Federal Circuit. In August 2025, the Federal Circuit upheld the lower court’s ruling, affirming that IEEPA does not authorize the president to unilaterally impose tariffs. The court noted that while IEEPA grants the president broad powers to regulate international economic transactions during national emergencies, it does not extend to the imposition of tariffs without limits.
The tariffs in question include the April 2nd “Reciprocal” tariffs and the “Fentanyl” tariffs imposed on Canada, Mexico, and China earlier in the year. The tariffs imposed on steel, aluminum, and automobiles were imposed under Section 232 of the Trade Expansion Act of 1962, as well as the tariffs on goods from China under Section 301 of the Trade Act of 1974 will not be affected by the appeal. The Supreme Court is scheduled to hear arguments during the first week of November. We believe that the Supreme Court’s decision may also affect the right to receive refunds should the decision be in favor of importers.
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