Trump Administration Submits Legal Defense of IEEPA Tariffs to Supreme Court

Trade Update • Sept.24, 2025

Key Points

• The Trump Administration filed an opening brief defending the use of IEEPA tariffs.
• The government argues that IEEPA authorizes the President to regulate imports, including imposing tariffs, and urges courts to respect the President’s national emergency and foreign policy decisions.
• The Supreme Court’s upcoming decision could significantly impact presidential tariff powers and affect billions in trade and future emergency authorities.
• Importers are required to file response briefs by October 20, 2025; oral arguments are scheduled for November 5, 2025. The ruling will clarify the scope of IEEPA authority.

T

he Trump Administration has submitted a 49-page opening brief to the U.S. Supreme Court defending tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This follows lower court decisions that struck down the tariffs, ruling that the President exceeded his authority. The brief argues that IEEPA authorizes the President to regulate imports, including imposing tariffs as a traditional method.

Government’s Main Arguments

• IEEPA’s statutory language authorizes the President to “regulate importation,” traditionally including tariffs as a regulatory tool.
• Courts should defer to presidential judgments on emergencies and foreign policy while Congress provides oversight via renewals and reporting.
• Removing the tariffs would weaken U.S. negotiating leverage and threaten national security and economic strategy.

Legal Background and Challenges

• Tariffs fall into two categories: “trafficking” tariffs against Canada, Mexico, and China linked to fentanyl issues, and “reciprocal” tariffs on most imported goods to address trade imbalances.
• Several lawsuits challenge the tariffs, claiming the president exceeded his authority.
• Lower courts struck down the tariffs, citing lack of clear congressional authorization.
• The Federal Circuit upheld the Court of International Trade’s ruling but stayed enforcement pending appeal to the Supreme Court.

Market Analysis

• Focus on Federal Circuit Dissent: The brief leans on four judges who argued that IEEPA’s power to “regulate importation” includes tariffs, citing statutory history.
• Bipartisan Support: Three of those judges were Democratic appointees, adding weight to the argument.

Potential Impact at the Supreme Court: The dissent gives a clear path the conservative-majority Court could use to uphold the tariffs.

What’s Next?

• Importers must file response briefs by October 20, 2025.
• The Supreme Court will hear oral arguments on November 5, 2025, and may issue a ruling shortly after.
• The decision will clarify the scope of presidential authority under IEEPA in economic and national security emergencies and shape U.S. trade policy going forward.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

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