Trump tariffs face US Supreme Court scrutiny on Nov 5:Two core legal probes may limit president’s power, benefiting India and the world

The US Supreme Court on November 5 will begin hearing to decide whether President Donald Trump can impose global tariffs without congressional approval. The verdict could reshape US global trade policy and determine the fate of Trump’s sweeping “Liberation Day” tariffs. Trump Tariffs on Trial The dispute began on April 2, 2025, when Trump declared the US trade deficit a “national emergency” and imposed a 10% tariff on nearly all imports, later increasing some duties to 50%. The administration argued that decades of trade deficits weakened the US industrial base and posed an economic threat. Critics, however, called the move unprecedented, pointing out that the US has run trade deficits since 1975 without declaring an emergency. Two Core Legal Questions According to the Global Trade Research Initiative (GTRI)​​​​​​, a New Delhi-based trade think-tank, the justices will consider two main issues: Jurisdiction: The petitioners — a group of small importers led by Learning Resources, Inc. — argue that their claims arise under IEEPA and should be heard in a federal district court. The government insists the case belongs before the Court of International Trade because it challenges a tariff schedule. Presidential Power: The petitioners, represented by Akin Gump Strauss Hauer Feld LLP, argue that IEEPA’s authority to regulate “importation or exportation” does not extend to setting customs duties — a power reserved for Congress. They invoke the “major questions doctrine,” warning that allowing presidents to unilaterally impose tariffs would upset the constitutional balance of powers. The government, defending Trump and the US Treasury Department, maintains that IEEPA’s broad language allows the president to act in the national interest, including on trade. The Supreme Court’s decision will set the boundaries for how far a US president can go in using emergency powers on trade. If the Court limits those powers, it will restore Congress’s authority in trade policymaking – says Ajay Srivastava, former trade official and founder of GTRI. The Supreme Court’s decision will set the boundaries for how far a US president can go in using emergency powers on trade. If the Court limits those powers, it will restore Congress’s authority in trade policymaking If Trump Loses the Case If the Court strikes down Trump’s use of emergency powers, it will reshape how future presidents approach trade. It would reaffirm Congress’s central role and reduce the scope for unilateral tariff actions – Srivastava adds. Global Implications The ruling will have major global implications. Srivastava notes if the Court invalidates Trump’s tariffs, it could disrupt several trade arrangements with partners such as the European Union, Japan, South Korea, and the United Kingdom — all negotiated under the shadow of those tariffs. The decision, he said, could also affect ongoing US-India trade talks, where tariff leverage has been a key factor in Washington’s negotiating strategy. Economists warn that the judgment could either stabilise global markets by reducing tariff uncertainty or, if the Court upholds Trump’s authority, usher in a new era of executive-led trade policy.