US Supreme Court Hears Argument on the Legality of IEEPA Tariffs

How the cases reached the Court

On 29 August 2025 the en banc US Court of Appeals for the Federal Circuit, by a majority of seven judges to four, affirmed the Court of International Trade's holding that the so-called Trafficking Tariffs on goods from Canada, Mexico and China and the worldwide Reciprocal Tariffs exceed the authority IEEPA delegates to the President. It affirmed the declaration that the orders were invalid, but vacated the universal injunction and sent the question of remedies back to the lower court.

On 9 September 2025 the Supreme Court granted review in both cases, taking No. 24-1287 from the District Court for the District of Columbia before judgment in the court of appeals, expediting the cases and consolidating them for argument. By an order of 23 October 2025 the Court enlarged the argument time to a total of 80 minutes, divided between the federal government, the private challengers and a group of states.

What is at stake

The challengers, small businesses and states, argue that IEEPA does not mention tariffs or duties and cannot support import taxes of unlimited duration and scope. The government argues that the power to regulate importation in an emergency includes the power to impose tariffs. The outcome will determine whether the tariffs remain in place under IEEPA and may raise further questions about refunds of duties already paid and the use of other statutory tariff powers.

What happens next

The Court has not indicated when it will rule. Importers, exporters and businesses with cross-border supply chains should keep records of IEEPA duties paid and monitor any guidance from US Customs and Border Protection on how a decision would be implemented.

Sources

• Supreme Court of the United States: Order list of 9 September 2025
• Supreme Court of the United States: Order list of 23 October 2025
• US Court of Appeals for the Federal Circuit: V.O.S. Selections, Inc. v. Trump, No. 25-1812