Supreme Court Challenges Trump’s Tariff Authority Amid Business Backlash

The U.S. Supreme Court grilled TRUMP administration lawyers over unilateral tariff impositions, questioning constitutional boundaries between executive and congressional powers. Conservative and liberal justices alike pressed the government's legal team on whether the president overstepped authority by bypassing legislative approval.

American businesses bear the brunt of these policies, according to Victor Owen Schwartz, a plaintiff in the SCOTUS case. "Trump’s reckless tariffs threaten everything we’ve built," he told CNBC, emphasizing that domestic companies—not foreign entities—absorb the costs. The unpredictability of these measures disrupts long-term planning, unlike congressionally mandated tariffs.

Lower courts previously ruled against the administration, rejecting its claim that the International Emergency Economic Powers Act (IEEPA) authorized "reciprocal tariffs" or targeted levies on fentanyl-related imports. The appeal hinges on redefining tariffs as trade tools rather than taxes—a distinction with profound implications for executive power and global commerce.