Supreme Court Petitioned to Review Trump Tariffs Impacting Americans with 2% Tax Hike

Coin WorldTuesday, Jun 17, 2025 6:56 pm ET
2min read

Two companies, Learning Resources Inc. and hand2mind Inc., have taken a significant step in the ongoing legal battle over President Trump's tariffs by petitioning the Supreme Court to determine the president's authority to implement these trade policies. The companies argue that the tariffs, particularly those on goods from China, are unlawful and have requested the Supreme Court to expedite their challenge, bypassing an appeal pending in the DC Circuit Court of Appeals.

The companies' petition is based on an analysis that suggests the tariffs would result in a substantial tax increase for Americans, potentially the largest in recent memory. According to the analysis, the tariffs would hike taxes on Americans by $660 billion a year, adding 2% to the Consumer Price Index and leading to a surge in prices. The companies contend that this tax increase is of such imperative importance that it warrants immediate review by the Supreme Court.

The Supreme Court has recently allowed cases with similar or lesser importance to be reviewed quickly, and the companies hope that their case will be given the same priority. They want the Supreme Court to decide on their case before its summer break at the end of the month, allowing for possible arguments in the fall. The companies had previously won a victory in the US District Court, where Judge Rudolph Contreras ruled that Trump's use of the International Emergency Economic Powers Act (IEEPA) was illegal. However, the administration appealed this decision, and the companies now seek to skip the appeals process and go directly to the Supreme Court.

The legal battle over Trump's tariffs has been ongoing, with two federal courts finding that the president unlawfully invoked IEEPA to justify his tariffs. However, both rulings are currently on hold. The US Court of International Trade (CIT) sided with a group of small companies in May, stating that Trump did not have the power to carry out his duties under IEEPA. The Trump administration appealed this decision to the US Court of Appeals for the Federal Circuit, which allowed the tariffs to remain in place while it determines if the president has the legal power to do so. Oral arguments are set to begin on July 31.

The Trump administration is prepared to defend its position, with legal experts suggesting that the "major questions doctrine" could pose a challenge. This doctrine states that federal agencies cannot act on issues of vast economic and political significance unless Congress explicitly permits them to do so. However, Trump's lawyers plan to use the "Nixon shock" as a precedent, where the 37th president placed 10% duties on goods without consulting anyone else, and these duties were challenged in court in a manner similar to Trump's tariffs.

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