US Supreme Court Defers Ruling On Trump's Global Tariffs, Extending Uncertainty For Businesses And Trade

The US Supreme Court on Wednesday (14 January) issued three decisions on but did not rule on the closely watched legal challenge to President Donald Trump's global tariffs, leaving businesses and markets in continued uncertainty.

The court declined to announce the next date when it will issue rulings, though decisions could come as early as next week.

The three cases decided yesterday concerned firearms convictions, Fourth Amendment emergency aid exceptions, and election law standing.

The tariffs case, which challenges Trump's use of the 1977 International Emergency Economic Powers Act to impose sweeping duties, marks a major test of presidential powers.

Lower courts have already ruled that Trump exceeded his authority by invoking the emergency law, which had never previously been used to impose import taxes.

During arguments heard on 5 November, both conservative and liberal justices appeared to cast doubt on the legality of the tariffs.

The case concerns Trump's 'reciprocal' duties targeting America's trading partners, as well as separate levies aimed at China, Canada and Mexico.

The IEEPA-based tariffs have remained in effect as legal proceedings continue.

The looming decision comes at a critical time for supply chain management decisions, as factories in China shut down in February for Lunar New Year.

If the tariffs are ruled illegal, the Court of International Trade has the legal authority to require refunds paid to US importers.

The US collected more than $133 billion in tariff duties as of mid-December, with hundreds of businesses including Costco having filed cases seeking refunds.

The Trump administration has indicated that if the Supreme Court rules against it, plans are already in place to implement tariffs using other legal provisions.

Prediction markets currently give approximately a 32 per cent chance that the Supreme Court will side with Trump's tariff plan, down 14 points after oral arguments signalled potential scepticism from the justices.

The challenges were brought by businesses affected by the tariffs and 12 US states, most of them Democratic-governed.

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