In this episode of Current Account, Clay provides an update on the Supreme Court case challenging President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify sweeping tariffs.

Clay explains how the administration relied on IEEPA to impose tariffs on nearly all imported goods, including a 10 percent baseline tariff on all countries - with targeted measures on Mexico, Canada, China, and Brazil. He reviews the legal arguments presented before the Supreme Court, including whether these tariffs constitute taxation or fall under the President’s emergency authority to regulate imports.

The episode also explores what could happen if the Court rules against the administration. Potential outcomes include a massive refund process for more than $89 billion in tariff revenue, a shift toward sector-specific tariffs under Section 232 and possible use of alternative statutes such as Section 122 of the Trade Act of 1974 or Section 338 of the Tariff Act of 1930. Clay considers the political and economic implications of these scenarios and why this decision could reshape U.S. trade policy.

For more on IEEPA, check out Episode #109: An Eye for an IEEPA: Trump Tariffs - Where Are They Now?

This IIF Podcast was hosted by Clay Lowery, Executive Vice President, Research and Policy, with production and research contributions from Christian Klein, Digital Graphics and Production Associate and Miranda Silverman, Senior Program Assistant.