US Supreme Court will decide the fate of Trump's tariff on Wednesday

The US Supreme Court will hear a crucial case on November 5 that could redefine presidential authority over trade and reshape global economic relationsThe case Learning Resources Vs Trump will decide whether a US president can use emergency powers under the International Emergency Economic Powers Act IEEPA to impose tariffs without congressional approvalThe outcome could have sweeping implications for Donald Trumps Liberation Day tariffs and for global trade policyAccording to a note by the Global Trade Research Initiative GTRI if the Supreme Court rules against Trump it could force the administration to withdraw tariffs imposed under IEEPAIt stated Such a ruling would mean all Liberation Day tariffsand subsequent rate hikeslack a lawful basis The administration would have to roll them back or face injunctions halting their collectionTrump could attempt to reimpose similar tariffs under Section 301 or Section 232 but those statutes require new investigations and public justification delaying action and inviting further legal challengesGTRI noted that if the Supreme Court strikes down Trumps use of emergency powers the ruling would reverberate far beyond US bordersThe decision would unravel the foundation of several recently negotiated trade arrangements with key partners such as the European Union Japan South Korea and the United KingdomThese agreements were struck under the shadow of those tariffs and were premised on reciprocal concessionsIt would also disrupt ongoing trade talks with India where tariff leverage has shaped Washingtons negotiating positionThe case is being closely watched not just in the US but around the world including in India It is seen as a test of executive power and the constitutional separation of powers between the White House and CongressTwo core legal questions are at the heart of the caseThe first is about jurisdiction whether the case belongs in a federal district court or the Court of International Trade CIT The petitioners led by Learning Resources Inc argue that their claims arise under IEEPA itself not under any law providing for tariffs and therefore should be heard in a district courtThe government maintains that because the case challenges the tariff schedule it properly falls under the CITs jurisdictionThe second and more consequential issue is whether IEEPA allows the president to impose tariffs at allThe petitioners represented by Akin Gump Strauss Hauer amp Feld LLP contend that the laws language permitting regulation of importation or exportation does not extend to setting customs duties a power reserved for CongressThey invoke the major questions doctrine arguing that allowing a president to declare economic emergencies and unilaterally set tariffs would upset the constitutional balance of powersThree lower courts have already ruled against the Trump administrationThe case was first heard in the US District Court for the Northern District of Illinois which on April 26 2025 rejected the governments argument that IEEPA allowed broad tariff powers and referred the matter to the trade courtsThe US Court of International Trade in a June 14 2025 decision held that IEEPA does not authorize the president to levy general tariffs and that Trumps use of emergency powers for routine trade matters violated the Constitutions separation of powersThe US Court of Appeals for the Federal Circuit upheld that ruling on August 2 2025 finding that Congress had never delegated such sweeping authority to the executive branchAs the Supreme Court prepares to hear arguments the worlds attention will turn to WashingtonThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever