Supreme Court Scrutiny Puts Trump's Global Tariffs in Jeopardy

Tough questioning from the U.S. Supreme Court has cast doubt on President Donald Trump's authority to impose global tariffs under the 1977 International Emergency Economic Powers Act. The potential invalidation of these tariffs has raised concerns about impending trade chaos as experts suggest Trump may switch tactics.

Justices scrutinized whether the IEEPA provides authority for tariffs during national emergencies, with many expressing skepticism. If the administration loses, shifts to other trade laws are expected. However, a decision isn't likely until 2026, and companies could face lengthy refund processes for the tariffs already paid.

The complexity surrounding tariff refunds adds to the uncertainty faced by businesses. Analysts warn that any court ruling against Trump would only temporarily disrupt his trade agenda, as he could invoke other trade laws, prolonging uncertainty in the trade policy landscape even further.