Supreme Court expected to rule Friday on Trump's power to impose tariffs

The nation’s highest court is poised to rule Friday on a case that could redefine the scope of President Donald Trump's trade agenda.

The cases stem from lawsuits filed by an educational toy manufacturer and a family-owned wine and spirits importer challenging Trump’s tariffs. The court must decide whether the International Emergency Economic Powers Act (IEEPA) gave the president the power to impose the tariffs, or whether the move overstepped constitutional limits.

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Tariffs are taxes levied on imported goods. Although they are paid by companies at the border, the costs are often passed along through higher prices, leaving consumers to bear much of the burden.

The Supreme Court decision comes as tariff revenue and the economic stakes tied to it have surged to record levels.

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Since Trump announced his "Liberation Day" tariffs in April, monthly collections have jumped from $23.9 billion in May to $31.6 billion in September. Total duty revenue reached $215.2 billion in fiscal year 2025, which ended Sept. 30, according to the Treasury Department’s "Customs and Certain Excise Taxes" report.

That momentum has carried into the new fiscal year, with more than $98 billion collected since Oct. 1, Treasury data shows.

The tariff windfall has become a cornerstone of Trump’s economic agenda, with the president arguing that duty collections can help bankroll domestic priorities.

On Nov. 9, Trump proposed allocating tariff revenue to provide a $2,000 dividend to low- and middle-income Americans by mid-2026, while channeling any excess funds toward reducing the nation’s $38 trillion debt.

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The Trump administration maintains, however, that aggressive tariffs are necessary to confront what he considers years of unfair global trade, a stance that shows how firmly trade policy is embedded in his broader economic strategy.

The proposal’s fate, however, hinges on whether the court upholds the president’s authority to levy the tariffs generating that revenue.