Accountancy Slice

North America

U.S. Supreme Court justices on Wednesday appeared skeptical of President Donald Trump’s broad use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs, suggesting the justices may curtail or overturn a key element of his economic agenda. Conservative justices, including Neil Gorsuch and John Roberts, joined liberals in questioning whether the law grants the president near-unlimited power over trade, with Gorsuch warning it could allow Congress to abdicate its constitutional duties. The case, which concerns tariffs Trump imposed citing national emergencies like drug trafficking and trade deficits, could have major implications for executive power, trade policy, and household costs. The administration argues the tariffs are legal under IEEPA’s language on regulating imports, but critics say they breach the “major questions” doctrine due to the lack of explicit congressional authorization. While a decision isn't expected immediately, questioning during the argument suggested that the tariffs may not survive the challenge, which would force the Trump administration to rely on other authorities to deploy levies on a similar scale.