9 Questions That Explain Trump’s Supreme Court Tariff Battle

1. Why are Trump’s tariffs before the Supreme Court?

The Court is reviewing whether President Trump’s broad tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were legally justified. Both conservative and liberal justices voiced doubts that the law was meant to authorize sweeping trade measures. The challenge argues that Trump overstepped his authority by using an emergency law for long-term economic policy rather than an immediate crisis.

2. What happens if the Supreme Court strikes them down?

If the Court rules against Trump, the current tariffs — which raised import duties as high as 145% on China and 50% on several other countries — could be invalidated. That would remove one of the administration’s main economic tools. But experts say Trump could still impose new tariffs under different legal authorities, meaning overall trade restrictions may remain largely intact.

3. How much revenue have Trump’s tariffs generated so far?

According to U.S. Customs and Border Protection, American importers have paid roughly $90 billion in tariff payments since the levies began. These payments are effectively taxes on imported goods and are typically passed on to businesses and consumers through higher prices. The funds have been a major source of revenue but have also contributed to rising costs in certain industries.

4. What is the International Emergency Economic Powers Act (IEEPA)?

IEEPA is a 1977 law that allows presidents to regulate trade during national emergencies. It was originally designed to freeze assets or restrict transactions with hostile nations — not to broadly raise tariffs. Trump’s use of it to impose across-the-board import duties is unprecedented, which is why the law’s limits are now being tested in court.

5. If IEEPA is struck down, what options does Trump still have?

Even without IEEPA, Trump can rely on several other laws to impose tariffs. These include Section 122 of the 1974 Trade Act, Section 232 of the 1962 Trade Expansion Act, Section 301 of the 1974 Trade Act, and Section 338 of the 1930 Tariff Act. Each law has specific conditions and limits, but together they give the president significant flexibility to reshape trade policy.

6. What is Section 122 of the Trade Act of 1974?

Section 122 lets the president impose temporary tariffs of up to 15% for 150 days to correct a “serious balance-of-payments deficit.” The measure can take effect immediately, without prior investigation. However, it expires after five months unless Congress approves an extension, making it a short-term but powerful option.

7. How does Section 232 allow tariffs for “national security”?

Under Section 232, the president can raise tariffs if imports threaten U.S. national security. The Commerce Department must first investigate and determine that a specific sector — such as steel or semiconductors — poses a security risk. Trump has used this authority extensively, applying tariffs to metals, cars, and other industrial products.

8. What makes Section 301 a more flexible tool?

Section 301 authorizes the U.S. Trade Representative to act against countries with “unjustifiable” or discriminatory trade practices. It allows for long-term tariffs with no cap on their size or duration. Trump recently used it to investigate whether China has violated trade agreements from his first term, signaling it could become a primary tool if IEEPA tariffs are struck down.

9. Could Trump use the 1930 Tariff Act to go even further?

Yes — Section 338 of the Tariff Act of 1930 gives the president authority to impose tariffs up to 50% on countries that discriminate against U.S. trade. However, no president has ever invoked it, since it could violate World Trade Organization rules and trigger harsh retaliation from affected nations. Still, it remains part of Trump’s legal toolkit if other options narrow.