Supreme Court to Decide Legality of Trump’s Controversial Tariffs

Mon Nov 03 2025 19:38:58 GMT+0200 (Eastern European Standard Time)

The Supreme Court prepares to hear a pivotal case on Trump’s tariffs, which have spurred significant backlash and legal challenges from businesses and states arguing their illegality.

The Supreme Court is set to deliberate on the legality of Donald Trump's tariffs, with significant implications for U.S. trade policies. Small businesses claim the tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), are unconstitutional. A ruling against the tariffs could overturn Trump's trade strategy and require refunds of billions collected through tariffs, affecting businesses across numerous industries, including toy and coffee production.

What may be the biggest battle yet in Donald Trump's trade war is about to begin.

The Trump administration heads to the US Supreme Court on Wednesday, facing off against small businesses and a group of states who contend most of the tariffs it has put in place are illegal and should be struck down.

If the court agrees with them, Trump's trade strategy would be upended, including the sweeping global tariffs he first announced in April. The government would also likely have to refund some of the billions of dollars it has collected through the tariffs, which are taxes on imports.

The final decision from the justices will come after what could be months of poring over the arguments and discussing the merits of the case. Eventually they will hold a vote.

Trump has described the fight in epic terms, warning a loss would tie his hands in trade negotiations and imperil national security.

On Sunday, the president said he will not attend the hearing in person as he did not want to cause a distraction. I wanted to go so badly... I just don't want to do anything to deflect the importance of that decision, he said. It's not about me, it's about our country.

Trump previously said that if he does not win the case the US will be weakened and in a financial mess for many years to come.

The stakes feel just as high for many businesses in the US and abroad, which have been paying the price while getting whipped about by fast-changing policies.

Trump's tariffs will cost Learning Resources, a US seller of toys made mostly overseas and one of the businesses suing the government, $14m (£10.66m) this year. That is seven times what it spent on tariffs in 2024, according to CEO Rick Woldenberg.

They've thrown our business into unbelievable disruption, he said, noting the company has had to shift the manufacturing of hundreds of items since January.

Few businesses, though, are banking on a win at the court. We are hopeful that this is going to be ruled illegal but we're all also trying to prepare that it's setting in, said Bill Harris, co-founder of Georgia-based Cooperative Coffees.

The White House says that if it loses, it will impose levies via other means.

While the arguments in court unfold, businesses continue to endure the pressures of these tariffs, as the justices weigh the future of Trump's approach to trade, national security, and presidential powers.