What happens to Trump’s IEEPA tariffs if he loses in court
Everyone is waiting for the Supreme Court’s decision.
- By [ Sung Chang ]
- 09/03/2025
The court could either side with the administration and let the tariffs remain in place. Or it could keep all or some of the decision made earlier this year by the U.S. Court of Appeals for the Federal Circuit (CAFC).
In a 7–4 decision, the CAFC ruled in September that the use of IEEPA to impose tariffs went beyond constitutional limits that reserve tariff authority for Congress. Although the ruling invalidated many of Trump’s tariffs, including some duties on China, Canada, Mexico, and other major trading partners, IEEPA tariffs remain in effect for now as the court stayed its decision to allow for an appeal to the U.S. Supreme Court.
The implications of the ruling are significant. But the decision won’t unwind all the trade actions the administration has taken in the past year. Nor is it likely to prohibit the administration from reconstructing many of the tariffs using other legal authorities.
That means the decision is unlikely to dramatically reset the trade landscape.
Even if the Supreme Court upholds the lower court ruling, uncertainty remains for importers. While the Court’s decision would affirm constitutional limits on executive power, it leaves businesses in limbo as they await clarity on the tariff landscape moving forward.
Further, the administration may temporarily lose leverage as it seeks to conclude trade negotiations with several trading partners and enforce those that are complete.
