The U.S. Supreme Court is evaluating whether President Donald Trump’s wide-ranging tariffs —implemented under the International Emergency Economic Powers Act (IEEPA) — are lawful. The central question is whether a law designed primarily for sanctions and emergency financial restrictions can be used to levy tariffs, a power traditionally reserved for Congress. During November’s oral arguments, justices questioned whether the IEEPA’s language supports the administration’s interpretation, noting that the statute does not explicitly authorize tariffs, taxes, or broad trade barriers.

The Court will also review whether the President sufficiently justified declaring a national emergency to invoke these authorities, and whether using the IEEPA for tariff actions exceeds the intended limits of executive power. The ruling could set a major precedent defining how far future presidents can go in reshaping trade policy without congressional approval.