CNBC Television
Supreme Court hears challenge to Trump administration's tariff policy
11/5/2025, 7:43:26 PM
Economic Summary
- The Supreme Court is weighing whether the 1977 International Emergency Economic Powers Act (IEEPA) grants the president authority to impose tariffs and regulate global commerce; a ruling against the administration would restrict executive power unless Congress explicitly delegates it.
- Tariffs are being collected daily from importers, and if the Court rules against the administration the Treasury could be required to refund about $90 billion (and growing), creating direct fiscal consequences and increased costs/uncertainty for American companies importing goods.
Bullish
- If the Court upholds executive authority, existing tariffs remain in place, supporting protected domestic producers.
- While the case is pending, the Treasury continues collecting tariffs, providing temporary revenue retention.
Bearish
- Supreme Court could rule the president lacks authority to impose these tariffs, forcing refunds and creating policy uncertainty.
- A decision against the administration may require roughly $90 billion in tariff refunds, straining the Treasury and importers.
People mentioned
Eamon JaversBrianRichard NixonDonald Trump