The US Supreme Court, on 9 September 2025, granted certiorari and a motion to expedite oral argument in Trump, et al. v. V.O.S. Selections, Inc., et al., the case challenging the legal basis for President Trump's Reciprocal Tariff Policy.

Background

On 29 August 2025, the US Court of Appeals for the Federal Circuit issued an en banc opinion affirming (7-4) a decision by the US Court of International Trade (CIT), which held on 28 May that President Trump had exceeded his authority in imposing certain tariffs under the International Emergency Economic Powers Act (IEEPA).

The next day, on 29 May, Federal Circuit temporarily stayed the CIT's decision, allowing the IEEPA-based tariffs to remain in place pending appeal. (For background, see EY Global Tax Alert, Court of International Trade rules tariffs under International Emergency Economic Powers Act unlawful; appeals court temporarily reinstates tariffs as case proceeds, dated 30 May 2025.)

In its 29 August decision, the Federal Circuit agreed with the lower court that "IEEPA's grant of presidential authority to 'regulate' imports does not authorize the tariffs imposed by [five] Executive Orders," which included the 2 April "Liberation Day" announcements and Executive Orders imposing tariffs on Mexico, Canada and China in response to migration and drug smuggling allegations. The appeals court emphasized that "the only issue we resolve on appeal is whether the Trafficking Tariffs and Reciprocal Tariffs imposed by the Challenged Executive Orders are authorized by IEEPA. We conclude they are not." However, the Federal Circuit also vacated the CIT's injunction and remanded to the lower court "whether its grant of a universal injunction comports with the standards outlined by the Supreme Court" in Trump v. CASA (holding, in pertinent part, that nationwide injunctions issued by federal courts likely exceed the courts' equitable authority).

Next steps

The Supreme Court is requiring opening briefs on the merits to be filed no later than 19 September 2025. Amicus curiae briefs may be filed until 23 September; response briefs on the merits are due by 20 October; and a reply brief is due by 20 October. The Court will hear oral arguments, limited to a total of one hour, sometime during the week beginning 3 November 2025.

Implications

Tariffs remain in force pending the Supreme Court's decision. Though the Supreme Court's decision could have significant implications for tariffs imposed under IEEPA, it is important to note that many other duties remain unaffected — including Section 301 tariffs on China, Section 232 tariffs on steel and aluminum and Antidumping and Countervailing Duties (AD/CVD) orders. Importers should continue to explore or continue with existing options to reduce the amount of duty owed.