Trade Disputes: Court Rejects Trump's Proposed Trade Policy

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2025 September 17 . 3:19 AM

2 min read

Trade Dispute: Judicial Ruling Rejects Trump's Trade Policy

Trade Disputes: Court Rejects Trump's Proposed Trade Policy

In a significant development, the Supreme Court of the United States is set to rule on one of the most important separation of powers and emergency powers cases in a generation. The case, V.O.S. Selections, Inc. v. Trump, revolves around President Trump's tariff policies, specifically the "Trafficking Tariffs" and "Reciprocal Tariffs," which have been a subject of controversy since their implementation.

The tariffs, aimed at protecting American industries, have raised prices on goods, causing difficulties for businesses and shoppers alike. Small businesses, like a New York wine importer called V.O.S. Selections, and 12 U.S. states sued to stop these tariffs, citing constitutional concerns.

The lower court, the Court of International Trade, initially halted the tariffs on May 28, 2025, but the Federal Circuit paused that decision on May 29, 2025. However, on August 29, 2025, the Federal Circuit, with all its judges working together, agreed with the lower court and ordered the tariffs to cease.

The court decision came as President Trump was given until October 14, 2025, to ask the Supreme Court for help. The Supreme Court has received a petition for certiorari from the Trump Administration regarding the tariff orders. The Supreme Court typically takes only about 80-150 cases out of the 7,000-8,000 petitions filed with it each year, and this case is no exception.

Organizations supporting Trump's tariff policies in amicus briefs included the U.S. Chamber of Commerce and the National Retail Federation, while opponents featured groups like the Constitutional Accountability Center and various industry coalitions. The outcome of this case will determine what powers Congress can delegate to the presidency over trade and emergencies.

All eyes are on the Supreme Court for clarity on this issue. The court's decision, which is expected to be made before the end of September, will likely provide a final answer by the middle of 2026, potentially resolving the ongoing dispute and setting a precedent for future presidential actions regarding trade policies and emergency powers.