President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs at the White House in Washington, D.C., on April 2, 2025. (BRENDAN SMIALOWSKI/AFP via Getty Images)
In April, Trump declared the U.S. trade deficit a "national emergency," and lawyers for the administration have cited that declaration as the legal basis for invoking IEEPA, which allows the president to respond to "unusual and extraordinary threats" when a national emergency has been declared.
The high court agreed to take up the case last fall after lower courts, including the U.S. Court of International Trade (CIT) and the U.S. Court of Appeals for the Federal Circuit, blocked Trump’s attempt to use IEEPA to enact import duties.
Lower courts pressed the Justice Department to explain why Trump invoked IEEPA when other, more narrowly tailored statutes enacted by Congress more specifically address tariffs — including laws that cap tariffs at certain levels or set timeframes subject to congressional review.
The law authorizes the president to "regulate … importation" during a declared national emergency, but it does not mention the word "tariffs" — an omission that was at the heart of the hours-long arguments before the high court in November. The absence of the word was a key factor in the majority's decision.
During oral arguments, justices pressed Solicitor General John Sauer, who argued on behalf of the government, on whether IEEPA applies to tariffs or taxation powers and what guardrails — if any — would limit the executive branch should the high court rule in Trump’s favor.
TRUMP DENOUNCES COURT’S 'POLITICAL' TARIFF DECISION, CALLS ON SUPREME COURT TO ACT QUICKLY
The U.S. Supreme Court building is pictured. (Nicolas Economou/NurPhoto via Getty Images)
Trump has claimed that deep and "sustained" trade deficits amount to a national emergency that is sufficient to trigger his executive powers under the emergency law.
The Justice Department urged the Supreme Court to allow the tariffs to remain in place, warning that denying Trump the tariff authority under IEEPA "would expose our nation to trade retaliation without effective defenses."
Plaintiffs countered that in the 50 years since its passage, the law has never been used by a president to impose tariffs. They also argued that, by the administration’s own admission, the trade deficit cited by Trump has persisted for nearly 50 years — a fact they said undermines his claim that there is an "unusual and extraordinary" trade emergency.
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They argued that authorizing Trump’s use of IEEPA to continue his universal tariffs would drastically expand executive power at the expense of the other branches of government.
Judges on a three-judge panel for the U.S. Court of International Trade voted unanimously earlier this year to block Trump’s tariffs from taking effect, ruling that as commander in chief, Trump does not have "unbounded authority" to impose tariffs under the emergency law. The U.S. Court of Appeals for the Federal Circuit also rejected the administration’s use of IEEPA.
Breanne Deppisch is a national politics reporter for Fox News Digital covering the Trump administration, with a focus on the Justice Department, FBI and other national news. She previously covered national politics at the Washington Examiner and The Washington Post, with additional bylines in Politico Magazine, the Colorado Gazette and others. You can send tips to Breanne at Breanne.Deppisch@fox.com, or follow her on X at @breanne_dep.
https://www.foxnews.com/politics/supreme-court-decision-donald-trump-tariff-powers