Trump’s tariffs face major test as U.S. Supreme Court hears challenge

Multiple lawsuits have been filed over the tariffs, and the court will hear suits filed by Democratic-leaning states and small businesses.

U.S. President Donald Trump’s power to unilaterally impose far-reaching tariffs is coming before the Supreme Court on Wednesday in a pivotal test of executive power with trillion-dollar implications for the global economy.

The Republican administration is trying to defend the tariffs central to Trump’s economic agenda after lower courts ruled the emergency law he invoked doesn’t give him near-limitless power to set and change duties on imports.

The Constitution says Congress has the power to levy tariffs. But the Trump administration argues that in emergency situations the president can regulate importation taxes like tariffs. Trump has called the case one of the most important in the country’s history and said a ruling against him would be catastrophic for the economy.

The challengers argue the 1977 emergency powers law Trump used doesn’t even mention tariffs, and no president before has used it to impose them. A collection of small businesses say the uncertainty is driving them to the brink of bankruptcy.

The case centers on two sets of tariffs. The first came in February on imports from Canada, China and Mexico after Trump declared a national emergency over drug trafficking. The second involves the sweeping “reciprocal” tariffs on most countries that Trump announced in April.

Multiple lawsuits have been filed over the tariffs, and the court will hear suits filed by Democratic-leaning states and small businesses focused on everything from plumbing supplies to women’s cycling apparel.

Lower courts have struck down the bulk of his tariffs as an illegal use of emergency power, but the nation’s highest court may see it differently.

Trump helped shape the conservative majority court, naming three of the justices in his first term. The justices have so far been reluctant to check his extraordinary flex of executive power, handing him a series of wins on its emergency docket.