US Supreme Court tariff decision Highlights: SCOTUS to issue next ruling on January 14

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During arguments on November 5, justices expressed skepticism over whether the statute can be applied to broad trade policy, prompting questions about the legality of the tariffs.

The lower courts had already ruled that the administration overstepped its authority, leading to an appeal before the Supreme Court.

• The case tests the limits of presidential authority under the International Emergency Economic Powers Act (IEEPA), a 1977 law meant for national emergencies.
• The tariffs, which Trump imposed by declaring a national emergency over persistent trade deficits, cover imports from nearly every US trading partner.

“There was a big call last night (before hearing) with all the principals to talk about if the Supreme Court were to rule against this IEEPA tariff, what would the next step be?” Director of the National Economic Council Kevin Hassett said on CNBC, referring to the administration’s invocation of the International Emergency Economic Powers Act (IEEPA).

US Treasury Secretary Scott Bessent told Reuters that he believes most companies would not pass on refund benefits to customers if courts overturned President Donald Trump's tariff orders.

"It won't be a problem if we have to do it, but I can tell you that if it happens — which I don't think it's going to — it's just a corporate boondoggle. Costco, who's suing the US government, are they going to give the money back to their clients?"

Tariff-exposed stocks declined rapidly on Friday due to the lack of a tariff ruling, as the court issued only one decision in the case, Bloomberg reported.

Scott Bessent said that companies typically, however, were not passing tariffs on to consumers, claiming there was "very, very little, if any, pass-through," and denied that Trump's tariffs had contributed to inflation. He mentioned that goods inflation had been below the headline inflation, Reuters reported.

Trump invoked the International Emergency Economic Powers Act to impose 'reciprocal' tariffs on goods from nearly all foreign trading partners, citing a national emergency over US trade deficits.

The issue is regarding Trump’s April 2 “Liberation Day” tariffs, which placed levies of 10-50% on most imports, along with duties imposed on Canada, Mexico and China in the name of addressing fentanyl trafficking.

The Learning Resources Vs Trump case seeks to determine whether a US President can invoke emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval.

Arguments on November 5 indicated that the court was doubtful that Trump had the authority to implement the tariffs under a 1977 law granting the president special powers in emergencies, Bloomberg reported.

While Director of the National Economic Council Kevin Hassett did not fully specify all tools under consideration, he noted Section 301 powers and Section 122 of the Trade Act as possible alternatives. Section 301 is generally more time-consuming than the emergency powers law, while Section 122 allows the president to impose duties unilaterally but is capped in duration and maximum rate, Fox Business reported.

The US Supreme Court is set to issue its next round of rulings on January 14, with several closely watched cases still pending, including a legal challenge to President Donald Trump’s sweeping global tariffs.

Trump has argued that tariffs have strengthened the US financially. In a January 2 social media post, he warned that a Supreme Court ruling striking them down would be a “terrible blow” to the country.

US Treasury Secretary Scott Bessent told Reuters on Friday that the US Treasury has more than adequate funds to pay any tariff refunds ordered if the Supreme Court rules against President Donald Trump's emergency tariffs, but any repayments would be spread out over weeks or even a year.

Tariff-exposed stocks rapidly declined on Friday due to no tariff ruling, as the court issued only one decision in the case, Bloomberg reported.

The US Supreme Court announced that Wednesday will be the next opinion day for the fate of President Donald Trump’s tariffs, Bloomberg reported.

Kevin Hassett, the Director of the National Economic Council, stated that the White House is developing alternative strategies in case the Supreme Court rules against President Donald Trump’s use of emergency powers to implement broad tariffs.

“There was a big call last night with all the principals to talk about if the Supreme Court were to rule against this IEEPA tariff, what would the next step be?” Hassett said on CNBC, referring to the administration’s invocation of the International Emergency Economic Powers Act (IEEPA).

National Economic Council Director Kevin Hassett emphasized that the administration has other legal options to achieve similar outcomes.

“There are a lot of other legal authorities that can reproduce the deals that we’ve made with other countries, and can do so basically immediately. And so our expectation is that we’re going to win, and if we don’t win, then we know that we’ve got other tools that we could use that get us to the same place,” he told CNBC.

The case, Learning Resources Vs Trump, will decide if a US President can use emergency powers under the International Emergency Economic Powers Act (IEEPA) to place tariffs without needing congressional approval.

Businesses affected by US President Donald Trump's tariffs, 12 states of the country (most governed by Democrats) have challenged the matter in the Supreme Court, according to a Reuters report.

Scott Bessent stated that companies generally, however, were not passing tariffs on to consumers, asserting there was "very, very little, if any, pass-through," and he disputed that Trump's tariffs had contributed to inflation. He mentioned that goods inflation had been below the headline inflation, Reuters reported.

Bloomberg reported that JPMorgan Chase & Co. strategists, including Jay Barry's note this week said that removing tariffs would likely “rekindle fiscal concerns, presenting a risk of higher long-term yields and steeper curves”. They, however, think impact “should be fairly limited”, as the Trump administration can pursue other routes to restore most levies.

US Treasury Secretary Scott Bessent told Reuters that he thinks most companies would not pass on refund benefits to customers, if the courts overturned President Donald Trump's tariff orders.

"It won't be a problem if we have to do it, but I can tell you that if it happens — which I don't think it's going to — it's just a corporate boondoggle. Costco, who's suing the US government, are they going to give the money back to their clients?"

Bessent said companies generally, were not passing tariffs on to consumers, saying there was “very, very little, if any, pass-through”, the report added.

United States Treasury Secretary told Reuters that his department has “more than adequate funds” to give out refunds if the US Supreme Court overturns President Donald Trump's tariffs order.

He however added that the repayment schedule would likely be spread over weeks and even a year instead of immediate.

The world's largest cryptocurrency Bitcoin jumped 2% on news that the US Supreme Court would not deliver a ruling on Donald Trump's tariffs on Friday, Forbes reported.

At time of writing, Bitcoin was trading at $90,477.81, with market cap of $1.8 trillion and 24 hour trading volume of $35.45 billion.

US Treasury Secretary Scott Bessent told Reuters on Friday that the US Treasury has more than adequate funds to pay any tariff refunds ordered if the Supreme Court rules against President Donald Trump's emergency tariffs, but any repayments would be spread out over weeks or even a year.

Trump invoked the International Emergency Economic Powers Act to impose so-called "reciprocal" tariffs on goods imported from individual countries - nearly every foreign trading partner - to address what he called a national emergency related to U.S. trade deficits.

He invoked the same law to impose tariffs on China, Canada and Mexico, citing the trafficking of the often-abused painkiller fentanyl and illicit drugs into the United States as a national emergency.

The case, Learning Resources Vs Trump, will determine whether a US President can invoke emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval.

According to the US Supreme Court's official website updated on 9 January, its next hearings are lined up for when the justices take the bench next Wednesday (14 January) at 10 am, agencies reported.

However, the SC does not announce in advance which particular cases on hand would be heard on that date.

Businesses affected by US President Donald Trump's tariffs and 12 states of the country (most with Democrats in charge) have challenged the matter in the Supreme Court, as per a Reuters report.

According to Bloomberg, investors are awaiting a slate of policy decisions in Washington covering tariffs, Federal Reserve leadership and cryptocurrency legislation, leaving Bitcoin in a holding pattern.

The Supreme Court did not issue an expected ruling on Friday on the legality of President Donald Trump’s tariffs, contributing to Bitcoin’s stasis alongside exchange-traded fund inflows and geopolitical uncertainty, according to Jake Ostrovskis, head of over-the-counter trading at Wintermute.

The US Supreme Court is set to issue its next round of rulings on January 14, with several closely watched cases still pending, including a legal challenge to President Donald Trump’s sweeping global tariffs.

While Hassett did not fully specify all tools under consideration, he noted Section 301 powers and Section 122 of the Trade Act as possible alternatives. Section 301 is generally more time-consuming than the emergency powers law, while Section 122 allows the president to impose duties unilaterally but is capped in duration and maximum rate.

Hassett said US Trade Representative Jamieson Greer is expected to spearhead the Plan B efforts.

“There are a lot of other legal authorities that can reproduce the deals we’ve made with other countries and can do so basically immediately,” Hassett told Fox Business.

National Economic Council Director Kevin Hassett said the administration has a contingency plan in place to reinstate President Donald Trump’s sweeping tariffs if the Supreme Court rules against their legality.

In an interview on Fox Business, Hassett said the backup plan would allow the levies to be put “back into place almost immediately, should the Supreme Court rule against us.”

National Economic Council Director Kevin Hassett emphasized that the administration has other legal options to achieve similar outcomes.

“There are a lot of other legal authorities that can reproduce the deals that we’ve made with other countries, and can do so basically immediately. And so our expectation is that we’re going to win, and if we don’t win, then we know that we’ve got other tools that we could use that get us to the same place,” he told CNBC.

National Economic Council Director Kevin Hassett said the White House is preparing alternative measures should the Supreme Court rule against President Donald Trump’s use of emergency powers to impose sweeping tariffs.

“There was a big call last night with all the principals to talk about if the Supreme Court were to rule against this IEEPA tariff, what would the next step be?” Hassett said on CNBC, referring to the administration’s invocation of the International Emergency Economic Powers Act (IEEPA).

The US Supreme Court has postponed its decision on the high-profile legal challenge to President Donald Trump’s global tariffs, leaving the case unresolved for now.

The cases before the Supreme Court were filed by businesses affected by the tariffs and by 12 U.S. states, most of them governed by Democrats.

Invoking the IEEPA, US President Donald Trump imposed so-called “reciprocal” tariffs on imports from nearly all US trading partners, citing a national emergency tied to trade deficits.

He also used the law to levy tariffs on China, Canada and Mexico, linking them to fentanyl trafficking and the flow of illicit drugs into the United States.

Trump has argued that tariffs have strengthened the US financially. In a January 2 social media post, he warned that a Supreme Court ruling striking them down would be a “terrible blow” to the country.

During oral arguments on November 5, justices appeared sceptical about the legality of the tariffs. Trump imposed them under the International Emergency Economic Powers Act (IEEPA), a 1977 law intended for use during national emergencies.

At the centre of attention is litigation questioning the legality of Trump’s tariffs, widely seen as a major test of presidential authority and the court’s willingness to rein in expansive claims of executive power since Trump returned to office

The Supreme Court justices will convene for a scheduled sitting at 10 a.m. ET. (8.30 pm IST)

The court may release opinions while the justices are on the bench.

Any rulings issued will be announced during this session.

The US Supreme Court may issue at least one opinion on Friday.

Several high-profile cases remain pending, including a challenge to President Donald Trump’s global tariffs.

Opinions may be released during the court’s scheduled sitting.

The court does not announce in advance which rulings it plans to issue.

Trump has claimed tariffs have made the United States stronger financially. In a social media post on January 2, Trump said a Supreme Court ruling against the tariffs would be a "terrible blow" to the United States.

The dollar edged up on Friday as markets awaited a US jobs report and braced for an approaching Supreme Court decision on President Donald Trump's use of emergency tariff powers.

Experts see a strong possibility of the Court ruling going against Trump, which could have a positive impact on the Indian stock market. They say if the Court gives a verdict that the tariffs are completely illegal, it will be a big hit to Trump, and it will be very favourable to markets like India, which have been severely impacted by Trump's tariffs.

The US Supreme Court will now give its verdict on whether Trump can invoke the International Emergency Economic Powers Act (IEEPA) to impose tariffs without Congress's approval.