Legal Challenges Threaten Trump’s Trade Deals as Cases Head to Supreme Court

Wall Street is mounting a concerted effort to dismantle former President Donald Trump's trade agreements, with multiple lawsuits now advancing toward the Supreme Court. The legal battles hinge on claims that TRUMP overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to impose tariffs—a move lower courts have already deemed unlawful.

The V.O.S. Selections v. TRUMP case, set for review by the Federal Circuit this Thursday, serves as the linchpin of the challenge. Plaintiffs argue the IEEPA—designed to address "unusual and extraordinary threats"—never granted tariff-setting powers. The U.S. Court of International Trade agreed in May, striking down measures including the 10% baseline tariff and China-focused fentanyl duties.

While the Court of Appeals temporarily stayed the ruling, the outcome remains precarious. A Supreme Court decision could unravel not just individual tariffs but the legal foundation of Trump's entire trade policy architecture.