US Supreme Court Questions Trump’s Global Tariff Policy, Raises Doubts Over Legal Basis

The US Supreme Court recently scrutinised President Donald Trump's global tariff policies during a hearing on November 5. According to media reports, the court's conservative majority expressed significant concerns about the administration's use of federal law to impose tariffs worldwide. Over two hours, Chief Justice John Roberts and other judges questioned the administration's rationale for these duties.

During the hearing, Roberts highlighted that the International Emergency Economic Powers Act (IEEPA) from the 1970s had never been used for imposing tariffs. He noted that while Congress has allowed presidents to raise tariffs under certain laws, Trump's administration was not using one of those laws. The IEEPA only permits regulating imports during emergencies.

Alternative Tariff Strategies

Experts believe Trump has other options if his current tariffs are overturned. Georgetown trade law professor Kathleen Claussen mentioned that Trump could potentially recreate a similar tariff structure using different authorities. Stratos Pahis from Brooklyn Law School added that Trump has tools like Section 301 of the Trade Act of 1974, which allows tariffs against countries with "unjustifiable" trade practices.

Section 232 of the Trade Expansion Act of 1962 is another option for imposing tariffs on items threatening national security. Although not limited by law, these tariffs are investigated by the US Commerce Department. John Veroneau, former general counsel for the U.S. trade representative, noted that this would be akin to self-investigation by the administration.

Potential Financial Implications

If the Supreme Court rules against Trump's tariffs, businesses might be entitled to refunds. The federal government has collected nearly $90 billion in revenue from these tariffs as of September, according to United States Customs and Border Protection data. In an interview with Fox Business, Trump acknowledged that a ruling against him could mean repaying this money.

The average US tariff rate has increased significantly under Trump's presidency, rising from 2.5% in January 2025 to 17.9%, marking the highest since 1934 based on Yale University's Budget Lab calculations. This increase reflects Trump's aggressive tariff policies aimed at protecting US interests.

Legal Challenges and Reactions

Neal Katyal represents small and medium businesses challenging Trump's tariff policies in court. Businesses have contested the administration's interpretation of IEEPA as including "the power to impose tariffs." The Supreme Court's questioning suggests potential limitations on Trump's current practices.

Trump warned that removing these tariffs could leave the US "defenseless" and reduce it to "almost Third World status," as reported by AP. Despite this stance, experts argue that alternative legal avenues exist for maintaining similar tariff structures if needed.