On November 5, the Supreme Court heard oral argument in three cases concerning whether the International Emergency Economic Powers Act (IEEPA) authorizes the President to impose tariffs to address a national emergency.

At issue in the case is specific language in the IEEPA statute that authorizes the President to, among other things, "by means of instructions, licenses, or otherwise … regulate … importation" to "deal with" a declared national emergency. It is this authority that President Trump has used to impose tariffs on Canada, Mexico, and China to address concerns about the flow of fentanyl and fentanyl-precursors into the United States; as well as to impose worldwide tariffs on nearly all imported goods to address "large and persistent annual U.S. goods trade deficits." Lower courts had struck down the tariffs, ruling either that IEEPA does not authorize the President to impose tariffs of any kind or that IEEPA may provide limited tariff authority but does not authorize the President to impose sweeping tariffs on nearly all imported goods from nearly all U.S. trading partners.

During the course of oral arguments before the Supreme Court, a majority of the Justices expressed skepticism of the Government's argument that the statutory authority under IEEPA to "regulate importation" extends to imposing tariffs. While the timing of a decision is unclear, the expedited process for the case thus far could prompt the Court to issue a decision before the end of 2025.

Additional information is available in the WCEY Alert, attached below.