Supreme Court Hears IEEPA Tariff Case

On November 5th, 2025, the Supreme Court heard oral arguments in Learning Resources, Inc. v. Trump (No. 24-1287), a case testing whether the International Emergency Economic Powers Act (IEEPA) allows the President to impose tariffs as a response to declared national emergencies.

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General D. John Sauer, representing President Trump, argued that the phrase “regulate importation” in IEEPA grants the President authority to impose tariffs. He cited historical precedents, including President Nixon’s 1971 tariffs under the Trading with the Enemy Act (TWEA), and claimed that such powers are vital tools for addressing crises like trade deficits and fentanyl trafficking. Sauer maintained that the administration’s actions target genuine national emergencies, not revenue generation, pointing to recent trade agreements, such as the China deal, as evidence of their effectiveness.

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Neal K. Katyal, representing the private challengers, countered that IEEPA was enacted to limit, not expand, presidential power after prior executive overreach under TWEA. He argued that tariffs are not “foreign-facing” measures but domestic taxes that burden U.S. importers and consumers, functions that belong solely to Congress under Article I.

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Benjamin Gutman, Oregon’s Solicitor General, joined in opposition, asserting that IEEPA was intended for targeted sanctions against bad actors, not broad import taxes or efforts to correct trade imbalances. Allowing the President to use IEEPA for tariff authority would upend the balance between Congress and the executive branch.

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As this case unfolds, it raises deeper questions:

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• Are tariffs inherently taxes, given their revenue-raising nature? CFR19 doesn’t contain a definition of the word “tariff.”

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• Are these IEEPA tariffs truly designed to address emergencies, or are they economic tool for generating revenue?

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•Could tariffs be reframed as “import licenses” under IEEPA? Trump admin is not seeking this.

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The full oral argument audio is available on the Supreme Court’s website:
https://www.supremecourt.gov/oral_arguments/audio/2025/24-1287

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Stay tuned for more updates and a beta release of our tariff calculator!

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Contact Us: info@kendricktrade.com

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