SCOTUS to Rule on Trump Tariffs After White House Warns of $1 Trillion Blow to Economy

The Supreme Court has agreed to fast-track a case that could decide the fate of President Donald Trump’s sweeping tariff agenda—one of the most significant pillars of his second-term economic strategy.

This comes after the U.S. Court of Appeals for the Federal Circuit ruled last month that Trump overstepped his constitutional authority by using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports from dozens of countries. The Trump administration immediately pushed for the high court to intervene, warning of massive national and economic consequences if the lower court’s ruling is allowed to stand.

On Tuesday, the Supreme Court agreed to hear arguments the first week of November under an expedited schedule.

Trump Administration Sounds the Alarm

Treasury Secretary Scott Bessent said that blocking the tariffs could force the U.S. to issue up to $1 trillion in refunds to importers, triggering what he called “significant disruption” to the economy. Solicitor General D. John Sauer echoed the warning, stating: “With tariffs, we are a rich nation; without tariffs, we are a poor nation… The economic consequences would be ruinous.”

President Trump blasted the Appeals Court ruling, calling it “a total disaster for the Country.”

“If allowed to stand, this Decision would literally destroy the United States of America,” Trump warned in a statement.

Court Challenges Trump’s Use of Emergency Powers

The Appeals Court ruled that the IEEPA—passed in 1977 to give the president broad powers during national emergencies—does not grant the authority to impose Trump’s “Trafficking and Reciprocal Tariffs.” The court argued that tariffs are essentially taxes and must be legislated by Congress.

“Absent a valid delegation by Congress, the President has no authority to impose taxes,” the court said. “The power to impose tariffs lies solely with the legislative branch.”

The ruling was put on hold until October 14 to give Trump time to appeal, which he did immediately.

National Emergency Declaration Under Scrutiny

The dispute centers on Trump’s April 2 declaration of a national emergency based on foreign trade practices that he said were harming American workers and undermining U.S. security. That declaration was the legal basis for his use of tariffs under IEEPA, though opponents argue it was an unconstitutional end-run around Congress.

Backup Plans Already Underway

Even if Trump loses the case, his administration is already preparing alternatives. Some tariffs may be protected under the Trade Expansion Act of 1962, which allows presidential action under certain national security concerns. Many of the tariffs currently in place are backed by that law and would remain unaffected regardless of the Supreme Court ruling.

A High-Stakes Legal Showdown

This case marks a critical moment for Trump’s economic nationalism. At stake is not just a single trade policy, but the broader power of the presidency to respond rapidly to economic threats. A ruling against Trump could limit future executive authority—and potentially hand China, the EU, and other trading rivals a massive legal victory.

Trump’s legal team is expected to argue that without the ability to impose tariffs swiftly, the president is left toothless in trade disputes and global economic negotiations. With oral arguments now scheduled for November, a final decision could reshape U.S. trade authority for decades to come.