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Supreme Court Scrutinizes Trump’s Emergency Tariffs After Skeptical Hearing

The decision could force a pivot to a narrow fallback under Section 338.

Overview

  • Oral arguments concluded with conservative justices Amy Coney Barrett and Neil Gorsuch joining liberal colleagues in sharp questioning, while Brett Kavanaugh and Samuel Alito appeared more receptive to the government’s view.
  • The case tests the use of the International Emergency Economic Powers Act to impose broad, ongoing “reciprocal” duties, including 15% tariffs on many European goods, after lower courts found the approach unauthorized and halted collections.
  • Treasury Secretary Scott Bessent defended the measures as national security actions and said the administration could switch to Smoot‑Hawley Section 338 for temporary, targeted duties if IEEPA is rejected.
  • The justices probed how refunds might work if the tariffs fall, with Barrett calling the process a potential “mess” and Alito raising whether the Court should address repayments now.
  • Treasury data show customs receipts have surged to $214.9 billion year to date, with August and September each exceeding $31 billion, underscoring the scale of possible refund claims and the stakes for trade policy.