Supreme Court to weigh legality of Trump’s trade tariffs

The US Supreme Court will on Wednesday take up a landmark case that could redefine presidential power over international trade, as it reviews the legality of President Donald Trump’s sweeping global tariffs.

The case challenges Trump’s reliance on emergency economic authorities to impose what he called “reciprocal” tariffs, duties meant to counter what Washington viewed as unfair trade practices by major partners, including Mexico, Canada, and China.

Trump’s tariff strategy, a central pillar of his “America First” agenda, quickly drew legal fire. A federal court ruled in May that he had exceeded his authority, and an appellate panel later upheld that decision in a 7–4 vote, leading Trump to escalate the matter to the nation’s highest court.

The ruling, expected months from now, could reshape the balance between executive and congressional powers on trade. The conservative-majority court may strike down the tariffs entirely or endorse Trump’s broad interpretation of presidential authority, potentially allowing future administrations to impose similar levies unilaterally.

At stake are billions in tariff revenues already collected and Trump’s ability to wield trade duties as leverage for political or diplomatic goals. The case will not directly affect sector-specific tariffs, such as those on steel, aluminum, or automobiles.

While the tariffs have not fueled major inflation, US small business owners say they have been forced to absorb higher costs.

“These tariffs threaten the very existence of small businesses like mine, making it difficult to survive, let alone grow,” said Victor Schwartz, founder of the New York-based wine distributor VOS Selections and lead plaintiff in the case. “I was shocked that those with much more power and money did not step up.”

Schwartz added that entrepreneurs have been “gambling with our livelihoods, trying to predict the unpredictable” as they navigate shifting tariff rates and fluctuating import costs.

Another importer, Mike Gracie of New York, said tariffs on Chinese wallpaper products pushed his expenses “hundreds of thousands of dollars higher.” He explained, “We didn’t want to risk our business by raising prices. But we can’t continue indefinitely to absorb them.”

Economists warn that continued tariffs could weaken American competitiveness. Kent Smetters of the University of Pennsylvania pointed out that “40 percent of US imports are intermediate goods,” meaning tariffs make it more expensive for US firms to produce finished products.

Former US trade official Ryan Majerus said the Supreme Court could craft a nuanced decision, potentially upholding some of Trump’s tariff powers while limiting others. He noted that even if the global tariffs are struck down, the administration could resort to other laws that allow short-term or targeted tariffs.

But for now, businesses, economists, and foreign governments alike are watching closely. “If the court really allows this to happen, then the question is, what else can the administration do without congressional approval?” asked Smetters. “That might spook capital markets a bit more.”