WASHINGTON: President Donald Trump has asked the US Supreme Court to set aside a federal appeals court ruling that struck down many of his administration’s tariffs as unlawful, escalating a legal fight that could reshape American trade policy and global economic relations.
According to a petition filed on Wednesday, and cited by Reuters, the Trump administration requested a swift review of a decision issued last week by the US Court of Appeals for the Federal Circuit. That court had ruled, by a 7–4 majority, that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) went beyond presidential authority, stressing that setting tariffs was “a core Congressional power.”
$159 billion in duties at stake
The ruling, if upheld, could require Washington to refund billions of dollars in duties collected since 2024. News website Barron’s reported that the total at stake could reach $159 billion, funds which have become a major source of revenue and leverage in President Trump’s trade negotiations.
Trump declared an economic emergency in April under IEEPA, claiming that trade imbalances were undermining US manufacturing and national security. The tariffs included a baseline 10 per cent levy as well as “reciprocal” tariffs targeting more than 90 countries. Additional duties on Canada, Mexico, China, and, more recently, on India were also introduced, which the administration argued were necessary to block illicit drugs and reciprocate tariffs.
Solicitor General John Sauer, in Wednesday’s Supreme Court filing quoted by Fox News, said “the stakes in this case could not be higher,” warning that the appellate decision had disrupted sensitive trade talks and created “legal uncertainty” around US foreign economic policy.
Business groups Reaction
Business groups had welcomed the lower court ruling. Lawyers for small firms challenging the tariffs told AP News they expected the decision to stand. Jeffrey Schwab of the Liberty Justice Center said the tariffs were “inflicting serious harm on small businesses and jeopardising their survival.”
The appeals court has delayed enforcement of its decision until 14 October, allowing the Supreme Court time to decide whether to hear the case. The administration has asked the Supreme Court justices to announce their position by 10 September, with arguments possible in November, The Guardian reported.
Global trade deals under threat
If the Supreme Court declines to review the case, the Federal Circuit’s ruling will take effect, immediately striking down most of the tariffs. That outcome could unravel ongoing US trade agreements. President Trump told Reuters earlier on Tuesday that Washington might have to “unwind” deals with the European Union, Japan and other partners if the tariffs collapse.
Some duties, such as those on steel and aluminium, introduced under a different legal authority, remain unaffected by the rulings.
The case underscores a broader test of presidential power in US trade law, but its consequences reach far beyond Washington. Analysts told The Wall Street Journal that global markets are already reacting to the uncertainty, with future negotiations likely to shift toward narrower, sector-specific tariffs if the Supreme Court upholds the lower court’s judgment.
