Supreme Court to Decide Legality of Trump Tariffs

The Supreme Court will decide the fate of some of President Trump’s tariffs. The court’s decision has the potential to reshape U.S. trade policy and impact HVACR distributors nationwide. The Supreme Court has agreed to hear a case challenging the legality of reciprocal tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA).

This post updates our earlier coverage of the legal challenges to Trump’s reciprocal tariffs and explores what the Supreme Court’s decision could mean for HVACR businesses.

Tariffs Refresher: How Did We Get Here?

In April 2025, at an event called Liberation Day, Trump invoked IEEPA to justify a series of reciprocal tariffs on imported goods, citing national security concerns and the flow of fentanyl into the U.S.

However, many legal experts and affected businesses argued the move exceeded presidential authority and bypassed Congress’s constitutional role in regulating trade. These tariffs, some as high as 50%, have so far remained in effect despite the legal challenges.

Appeals Court Ruling: Presidential Overreach

On August 29, the U.S. Court of Appeals for the Federal Circuit ruled 7–4 that Trump had overstepped his authority under IEEPA. The court upheld a previous decision by the Court of International Trade, stating that while a president may regulate imports during a national emergency, that authority does not extend to imposing indefinite, sweeping tariffs across global trade. The ruling came in the case of V.O.S. Selections v. Trump, which was brought by a group of small businesses. A separate case, Learning Resources v. Trump, had reached a similar conclusion earlier in the year in a different court.

Supreme Court Steps In

On September 9, the Supreme Court agreed to hear the Trump administration’s appeal. The court has expedited the process, scheduling oral arguments for the first week of November and consolidating the two major cases.

What’s at stake:

• $750 billion to $1 trillion in potential tariff refunds.

• Tariffs affecting nearly 70% of all U.S. imports, according to the Tax Foundation.

• If the challenged tariffs are struck down, only 16% of imports would remain affected by other tariffs

For HVACR distributors, this could mean:

• Cost relief if tariffs are rolled back.

• Refund opportunities for previously paid duties.

• Supply chain recalibration depending on the ruling’s scope.

What Happens Next?

The Supreme Court’s decision could come quickly due to the expedited schedule. If the justices uphold the lower court rulings, it would mark a major shift in how tariffs are imposed and who has the authority to do so.

HARDI’s Government Affairs team will continue to track this case and provide updates as they unfold.

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