Trump Tariffs face Supreme Court test on Feb. 20

TLDR

• Supreme Court may rule Feb. 20 on Trump tariffs under IEEPA.
• Decision could define whether IEEPA authorizes broad reciprocal and emergency tariffs.
• Skeptical justices might limit emergency powers, narrowing presidential trade authority.

As reported by Bloomberg Law, the U.S. Supreme Court has set Feb. 20 as its next opinion day, the earliest date for a Supreme Court tariff ruling in challenges to the Trump tariffs under the International Emergency Economic Powers Act (IEEPA). A decision could determine whether IEEPA authorizes large-scale reciprocal and emergency tariffs or whether those duties exceeded presidential authority.

During November arguments, justices from both conservative and liberal wings questioned whether IEEPA permits broad, long-running tariff regimes, according to Politico. That skepticism signals potential limits on the use of emergency powers for revenue-affecting trade measures.

Neal Katyal, representing small-business challengers, has argued that IEEPA does not mention tariffs and that reading it to allow sweeping duties asserts power Congress never granted, as reported by The Guardian. If adopted, that view could narrow presidential trade authority going forward.

Why it matters now: IEEPA limits, tariff refunds, immediate impacts

Refund exposure could be substantial if most tariffs are invalidated: experts have cited $750 billion to $1 trillion tied to the reciprocal duties, according to Time. Treasury Secretary Scott Bessent said the department has “more than enough funds” to cover any tariff refunds. The same report notes refunds would not be universal; importers would need to document payments, and some claims may be time-barred.

A separate estimate places more than $130 billion in tariffs collected so far at issue, based on data from Financial Express. Even if the Court finds overreach, remedies could be partial or staged, with possible remands to resolve refund mechanics, as reported by CBS News.

Should IEEPA be narrowed, the administration could pivot to Section 301 or Section 232 to maintain selected duties, according to Seoul Economic Daily. Those fallback tools sit outside the current IEEPA dispute and would require distinct procedural steps.

Next opinion days: Feb. 24 and 25 also scheduled

In addition to Feb. 20, the Court has set Feb. 24 and 25 as opinion days, according to Stocktwits News. These dates extend the window for a ruling if the tariff decision does not emerge on Feb. 20.