Daijiworld Media Network – Washington

Washington, Jan 20: The US Supreme Court on Tuesday refrained from issuing a decision in the legal challenge against former President Donald Trump’s use of emergency powers to impose broad global tariffs, leaving the matter unresolved for now.

The case questions whether Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA) by levying country-specific import tariffs without explicit congressional approval. Importers challenging the move argue the tariffs were unlawfully imposed, while the Trump administration maintains its actions were within presidential powers.

At stake is not only the legality of the tariffs but also whether businesses that paid them could be entitled to refunds if the measures are later invalidated. These tariffs have been a cornerstone of Trump’s trade policy and have impacted a wide range of imports.

Treasury Secretary Scott Bessent expressed confidence over the weekend, stating it was “very unlikely” that the Supreme Court would overturn the administration’s use of emergency powers. Officials have also indicated that even if the court rules against them, new tariffs would be imposed immediately. Trump has linked potential future tariffs to broader US demands, including his controversial push for Greenland.

Investment firm TD Cowen noted that the administration has contingency plans to swiftly replace the IEEPA tariffs, potentially within 24 hours, using other trade authorities like Section 122, Section 301 of US trade law, or Section 338 of the Tariff Act of 1930, which allows tariffs of up to 50 percent in response to discriminatory trade practices.

The Supreme Court’s delay has heightened uncertainty for businesses and global trade partners, keeping the fate of Trump-era emergency tariffs in limbo.