Global tariff policy up for review at the Supreme Court, as per request from former President Trump

The Trump administration's "Liberation Day" tariffs, which were initially unveiled in April and faced multiple delays before implementation in early August, are set to be reviewed by the U.S. Supreme Court.

President Donald Trump announced he would seek an expedited review of the legality of these tariffs, following a decision by the United States Supreme Court to fast-track the case and schedule oral arguments for early November 2025.

These tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), have been a subject of contention. Critics argue that Trump's use of emergency powers exceeded presidential authority, a claim upheld by the U.S. Court of Appeals for the Federal Circuit, which struck down most of the tariffs.

However, the U.S. Court of International Trade reaffirmed an earlier ruling, allowing the tariffs to remain in place temporarily. The tariffs are currently scheduled to stay in effect until at least Oct. 14.

The tariffs have generated significant revenue, with CNBC reporting that they have reached $142 billion, with the White House collecting over $30 billion a month.

Businesses, particularly those in the import and export sectors, are understandably concerned about potential refunds if the Supreme Court upholds the lower courts' decision. Mike Short, president of global forwarding at brokerage giant C.H. Robinson, has expressed such concerns, stating that businesses are particularly concerned about potential refunds.

Short also noted that tariff volatility has become the new normal, and companies are not only adjusting short-term tactics, like frontloading shipments, but also rethinking long-term supply chains and sourcing strategies. Increasingly, companies want to move beyond discussion and accelerate execution in response to tariff volatility.

It's important to note that Section 232 investigations are ongoing in various industries, including lumber, pharmaceuticals, aerospace, trucks, seafood, and critical minerals. This means that new tariffs could be triggered quickly due to these ongoing reviews, as seen with the 50% duties added to imports of steel, aluminum, and copper in July.

Trump has threatened that the U.S. could "unwind" trade deals with the European Union, Japan, and South Korea if the Supreme Court upholds the lower court rulings. However, the potential impact of these tariffs on the country's economic standing has been a point of contention. Trump stated that if the Supreme Court case is not won, the country could "suffer so greatly" and potentially become a third-world country.

Regardless of how the case is resolved, companies should prepare for continued trade turbulence. It seems that the reality of tariff volatility is here to stay.