US Supreme Court deeply skeptical of trade duties, emergency arguments on Thursday

The Donald Trump 2.0 administration faced tough questions on its trade tariffs in the US Supreme Court on Wednesday, with the hearing set to conclude later in the day. The court is scheduled to hear emergency arguments the next day, with an application for stay denied and the president’s authority under the 1977 International Emergency Economic Powers Act (IEEPA) “plenary in national emergency”.

The case is an amalgamation of concerns raised by businesses and 12 US states arguing that the 47th American president overstepped his authority by using an emergency powers law to impose the duties that have shaken the global markets.

The court is hearing oral arguments to decide whether the IEEPA authorises the US president to impose broad tariffs.

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Trump’s global tariffs appear to be on shaky ground, as nine judges expressed skepticism in Wednesday’s hearing, according to foreign media. The Trump administration’s counsel faced tough questioning during arguments in one of the most significant cases in the court in decades.

The hearing exceeded the original 80-minute window. Trump’s attorney reportedly faced deep skepticism from several key conservatives.

The development comes at a time when Trump has already warned that a ruling against him could have “catastrophic” consequences for the health of the world’s largest economy.

If the US Supreme Court overturns the tariffs, the Trump 2.0 administration will need to repay tens of billions of dollars it has already collected in revenue due to these duties.

While arguments in the matter don’t lead to a decision immediately, they provided important ground about which way justices are leaning.

The US federal government has already collected around $90 billion in revenue from the tariffs, according to official data as of September 23.