Washington, DC — The US Supreme Court has deferred a ruling in a landmark case that could reshape the boundaries of presidential authority over trade, leaving businesses, global investors, and policymakers in limbo.
The decision, originally scheduled as part of the court’s Friday releases, came and went without explanation, extending uncertainty over a policy that has already upended global supply chains.
Reuters reported that the Supreme Court will not issue a ruling on Friday in a closely watched case that challenges the legality of President Donald Trump‘s sweeping global tariffs.
The case stems from widespread tariffs imposed by Trump in 2025 under the International Emergency Economic Powers Act (IEEPA), a 1977 statute designed to grant presidents authority to act in declared national emergencies through economic measures.
US President invoked the law after declaring a national emergency due to persistent US trade deficits, targeting more than $150 billion in imports from China, India, and key allies, including Canada and the European Union.
The administration pitched the duties as “reciprocal tariffs,” aimed at forcing fairer trade and strengthening domestic manufacturing.
In practice, they pushed US average tariff rates above pre-2025 levels, complicating customs enforcement, adding costs for importers, and drawing fierce criticism for bypassing Congress.
A battery of cases
More than 1,000 companies filed suits, including some of the country’s largest importers. Plaintiffs argued IEEPA does not grant the US president sweeping authority to impose broad trade taxes, a law intended to control foreign assets rather than set tariffs.
They framed the policy as a breach of the separation of powers, warning that unchecked executive authority could upend the constitutional balance.
Lower courts sided against the Trump administration.
In May 2025, the US Court of International Trade ruled the tariffs illegal, a judgment the Federal Circuit upheld in August.
Judges there noted IEEPA’s regulatory authority does not extend to broad import duties, rejecting the administration’s claim that “emergency” powers could override statutory limits.
US Supreme Court took up the case in late 2025.
At stake is more than the immediate legality of the duties: a ruling against the administration could obligate the federal government to pay billions in refunds, disrupt long-term economic planning, and force a rethink of how the executive branch can intervene in trade policy.
White House advisors have indicated that, regardless of the court’s eventual decision, Trump could turn to alternative legal avenues to achieve the same objectives.