Supreme Court Hears Tariff Powers Challenge

The U.S. Supreme Court heard oral arguments on Wednesday in challenges to President Donald Trump's use of emergency powers to impose widespread tariffs on imports from numerous countries, with several justices voicing skepticism about the legal basis for the move. The cases, brought by states and small businesses, question whether Trump overstepped his authority under the 1977 International Emergency Economic Powers Act, or IEEPA, which grants the president broad authority to regulate international economic transactions during a declared national emergency but does not explicitly mention tariffs.

Trump invoked IEEPA in April after declaring a national emergency over persistent U.S. trade deficits, which he described as a threat to economic security. The tariffs, often referred to as reciprocal duties, apply to a range of countries and include measures targeting fentanyl-related imports from Canada. They have raised the average U.S. tariff rate from 2.5 percent when Trump took office in January to 17.9 percent, the highest level since 1934, according to Yale University's Budget Lab. The administration argues the duties serve foreign policy and national security goals, with any...