The Supreme Court’s delay in delivering a verdict on the use of emergency powers to implement tariffs under the International Emergency Economic Powers Act (IEEPA) could be a sign of a favorable outcome for President Donald Trump, according to JPMorgan analysts.
For a second time, the Supreme Court declined to rule on the legality of Trump’s tariffs on Wednesday, and did not set a date for a future decision.
In a note to clients, the analysts, Amy Ho and Joyce Chang, highlighted that the longer the court takes to make a decision, the more likely it is leaning towards the Trump administration despite legal experts predicting otherwise, reported Fortune on Wednesday.
The analysts noted that historically, the Supreme Court saves its most consequential rulings for the end of its term in June, allowing for extended deliberation.
They also noted that the underlying case involves potential tariff refunds of $135 billion.
Trump Warns Of Trillions At Risk
Trump, on Monday, warned of dire economic consequences for the U.S. if the Supreme Court rules against the federal government in the ongoing legal challenges to its tariff policies. He reiterated that a negative ruling could force the U.S. to repay “many hundreds of billions of dollars” in tariffs already collected, with potential costs ballooning into the trillions once related investments are factored in.
Despite the ongoing legal challenges, U.S. Treasury Secretary Scott Bessent expressed confidence that the administration would be able to enforce its tariff policies, regardless of the outcome of the Supreme Court case. He pointed to various sections of the 1962 Trade Act that grant the president significant authority over import duties.
Companies Seek Refunds Amid IEEPA Tariffs
Meanwhile, in December, Costco Wholesale Corp (NASDAQ:COST) has taken legal action against the Trump administration seeking a complete refund of all duties collected under the IEEPA, highlighting concerns over whether all businesses that have paid the duties would be eligible for refunds if the Supreme Court rules the tariffs unlawful.
Several companies, including Revlon Consumer Products Corp. and Kawasaki Motors Manufacturing Corp., have filed similar lawsuits in a U.S. trade court since late October.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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