What Happens If the Supreme Court Blocks Trump’s IEEPA Tariffs?
On November 5, 2025, the Supreme Court will hear oral arguments on whether the International Emergency Economic Powers Act (IEEPA) authorizes broad, across-the-board tariffs. If the Court rules the President lacked tariff authority under IEEPA, companies will likely pursue refunds, and the administration could shift to other established tariff tools.
IEEPA was designed for sanctions and emergency economic measures; it doesn’t explicitly authorize tariffs—that’s the point under review. If the Supreme Court determines that the president does not have the authority, then other options could be considered. I thought it might be useful to share these other levers and a bit of details about them.
Section 122 (Trade Act of 1974, 19 U.S.C. § 2132) – Balance-of-payments tool. The President can impose up to 15% duties or quotas for up to 150 days; Congress must act to extend beyond that. Useful for quick, temporary coverage.
Section 201 (Safeguards, 19 U.S.C. § 2251 et seq.) – Serious injury standard. The USITC investigates; the President decides remedies. Up to 4 years, extendable to 8. Remedies include tariffs, quotas, or TRQs, often phased down. Statutorily, tariff increases are capped at 50% over prevailing rates (that’s a limit, not a typical outcome). Historic examples: solar (30% declining), 2002 steel (up to ~30%), 1983 motorcycles (45%).
Section 232 (Trade Expansion Act of 1962, 19 U.S.C. § 1862) – National security tool. Commerce investigates and reports within 270 days; the President adjusts imports (tariffs/quotas/other). The statute sets no rate cap or fixed duration.
Section 301 (Trade Act of 1974, 19 U.S.C. § 2411) – Unfair trade practices. USTR investigates (generally within 12 months) and can impose tariffs or other measures. Actions expire after 4 years unless domestic industry requests continuation and USTR conducts a review; no rate cap.
Section 338 (Tariff Act of 1930, 19 U.S.C. § 1338) – Foreign discrimination tool. Authorizes the President to impose new or additional duties (up to 50%) or restrict imports when a country discriminates against U.S. commerce.
Trade Remedies: AD/CVD (Tariff Act of 1930 §§ 701 & 731) – Firm-/country-specific duties addressing subsidies (CVD) and dumping (AD). Commerce determines subsidies/dumping; USITC determines injury. Orders can remain in place indefinitely, subject to five-year “sunset” reviews.
New Congressional Authorization – The administration could seek new tariff authority from Congress—slower, but the most durable path if enacted.
If IEEPA tariffs are struck down, it won’t necessarily end the tariff story—it could shift the lever the administration chooses to use.