(MENAFN- Live Mint) The US Supreme Court is poised to decide whether President Donald Trump's global tariffs amount to an illegal $3 trillion tax on American businesses, Bloomberg reported. Small firms have urged the apex Court to uphold lower court rulings, arguing that the tariffs exceed Trump's authority.

The case focuses on the 1977 International Emergency Economic Powers Act, which allows the president to impose financial measures during national security, foreign policy, or economic emergencies.

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The US Supreme Court is preparing to determine whether former President Donald Trump's global tariffs constitute an illegal $3 trillion tax on American businesses, Bloomberg reported. Small firms have urged the Court to uphold lower court rulings, asserting that the tariffs exceeded Trump's authority.

What law is at Centre of case against Trump's Tariffs?

The dispute revolves around the 1977 International Emergency Economic Powers Act (IEEPA), which permits the president to impose financial measures during national security, foreign policy, or economic emergencies. The Court must decide whether Donald Trump acted within these legal powers or bypassed constitutional limits.

The US Supreme Court is preparing to determine whether former President Donald Trump's global tariffs constitute an illegal $3 trillion tax on American businessesWhy do small businesses object to Trump's Tariffs?

Learning Resources Inc., one of the companies challenging the tariffs, said in a brief Monday:

“In the months since, he has raised and lowered, paused and resumed, and threatened and unthreatened tariffs at will, for a grab bag of reasons. By the government's own account, those actions amount to an over $3 trillion tax increase on Americans over the next decade.”

The brief argues that Trump effectively usurped Congress's power to levy taxes by issuing tariffs in February and April under an emergency law not designed to impose duties.

Which tariffs of Trump are under scrutiny?

The appeal covers Trump's April 2“Liberation Day” tariffs, which imposed levies of 10%-50% on U.S. imports depending on origin. It also includes tariffs targeting Canada, Mexico, and China for failing to address migration and fentanyl trafficking. Trump justified the measures under IEEPA, declaring U.S. trade deficits and border crises to be national emergencies.

What does the Trump administration say?

The White House has not commented publicly on the litigation. Administration officials have downplayed the impact, noting that some tariffs were imposed under other legal statutes, including steel, aluminium, and automobile levies, which are unaffected by this appeal.

What about other challengers of Trump's Tariffs?

In a separate brief, a group led by wine distributor V.O.S. Selections Inc. argued:

“The government contends that the president may impose tariffs on the American people whenever he wants, at any rate he wants, for any countries and products he wants, for as long as he wants - simply by declaring longstanding US trade deficits a national emergency and an unusual and extraordinary threat. The president can even change his mind tomorrow and back again the day after that.”

Additionally, a coalition of Democratic-led states has filed challenges against the tariffs.

When will the Supreme Court hear arguments?

The justices are scheduled to hear arguments on 5 November. Observers note the unusually aggressive schedule, suggesting the Court aims for a swift resolution. The ruling could reshape the balance of executive power and have lasting implications for U.S. trade policy.

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