The U.S. Supreme Court will hear oral arguments today in the historic case over the legality of sweeping tariffs that President Donald Trump has dubbed “Liberation Day.”
The case could fundamentally alter the Trump administration’s most prominent economic policy, have multi-million dollar consequences for businesses and foreign countries, and further expand Trump’s executive powers.
The justices will hear two separate cases involving the “Independence Day” tariffs Trump imposed on nearly all foreign countries and additional tariffs on goods imported from Canada, Mexico and China.
Trump imposed these tariffs under the International Emergency Economic Powers Act (IEEPA), which gives presidents the authority to impose economic sanctions during national emergencies.
Some Democratic-led states and small businesses have filed lawsuits over these tariffs, arguing that the IEEPA doesn’t authorize the president to impose tariffs and that there’s no such “national emergency.” Two lower courts ruled against Trump, declaring that the IEEPA didn’t authorize such tariffs. The Supreme Court will now have the final say.
The outcome of the case is crucial for US businesses. If the Supreme Court invalidates Trump’s IEEPA tariffs, companies will be able to receive refunds of taxes paid and temporary tax breaks for imported products. The Trump administration has called the case an “existential threat to the US economy.”
Trump said on the CBS program “60 Minutes” that if the tariffs were rescinded, “the country would suffer immeasurable harm” and “the economy would go to hell.” While the president announced that he would not attend the hearing in person, Treasury Secretary Scott Bessent will be present at the Supreme Court. “This is an economic emergency,” Bessent told Fox News. “National security is economic security.”
The judges will hear oral arguments, but it is unclear when a final decision will be announced. The Supreme Court typically issues its decisions months later, but given the urgency of the case, the process could be expedited. The verdict is expected by June 2026 at the latest.
If the Supreme Court strikes down the IEEPA tariffs, the Trump administration is expected to reimpose them under other legal grounds. “Companies and foreign governments should assume these tariffs are permanent,” Secretary Bessent told Reuters. However, because other laws are more restrictive and require longer processing times, the scope and duration of the new tariffs are currently unclear.
*This is not investment advice.
