On Wednesday morning local time, the U.S. Supreme Court began oral arguments on the core of President Trump's aggressive trade policies - the imposition of wide-ranging and sometimes high tariffs on most countries around the world. The case will determine Trump's fate. Lower federal courts have ruled that Trump’s legal authority to invoke the International Emergency Economic Powers Act is insufficient to impose so-called reciprocal tariffs on imports from many U.S. trading partners.
The court said Congress, not the president, had the authority to impose tariffs in this manner.
These tariffs start at 10% in many countries and go up to 50% on goods from India and Brazil.
The Committee for a Responsible Federal Budget estimates that if these tariffs are implemented, they will generate $3 trillion in additional revenue for the United States by 2035. The group said last week that the federal government imposed $151 billion in tariffs in the second half of fiscal 2025, an increase of nearly 300% from the same period in fiscal 2024.
Treasury Secretary Scott Bessant plans to attend Wednesday's oral arguments. He said in a court filing in September that the United States could be required to refund $750 billion or more if the Supreme Court rules the tariffs are illegal but waits until next summer to rule.
The Supreme Court will not rule on the case on Wednesday. It is unclear when the court will announce its ruling.
The case is seen as a key legal test for Trump. The Supreme Court ruled in his favor on other policies during his second term in the White House.
Conservative justices hold a 6-3 majority on the Supreme Court.