There’s a fast-moving legal drama unfolding as of September 2025. The courts are being asked to decide whether the sweeping tariffs President Trump imposed under emergency authority are lawful, particularly under the International Emergency Economic Powers Act (IEEPA). Maribod Global has been tracking this closely. This post gives you an overview of the current status, what’s at stake, and what your company should be doing now.
What’s happening now
Here are the key recent developments:
- On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit ruled 7-4 in V.O.S. Selections, Inc. v. Trump that the tariffs imposed under IEEPA — the so-called “Reciprocal Tariffs” and “Trafficking Tariffs” — exceed presidential authority under that law.
- On September 10, 2025, the U.S. Supreme Court agreed to take up consolidated challenges: Learning Resources v. Trump and V.O.S. Selections, Inc. v. Trump. The Court is expediting the case, with oral arguments set for the first week of November.
- Meanwhile, the tariffs challenged under IEEPA remain in effect while all this plays out. Businesses are continuing to pay them pending final resolution.
- Treasury Secretary Scott Bessent has publicly said that if the Supreme Court ultimately rules these IEEPA-based tariffs illegal, the U.S. Treasury may have to refund roughly half of the tariffs collected under them, potentially $750 billion to $1 trillion.
Key legal issues in the case
What the Supreme Court will need to decide includes:
- Statutory authority under IEEPA Can the President under IEEPA impose tariffs (which are effectively import duties/taxes) or is that beyond what the statute allows? The Federal Circuit said no.
- Constitutional limits on presidential power Are these tariffs an example of the White House exercising legislative power without clear congressional direction? Does that violate constitutional separation of powers?
- What qualifies as a national emergency under IEEPA The administration invoked national emergencies to justify these tariffs (fentanyl trafficking, trade deficits, economic threats). Courts will examine whether those situations meet the law’s requirement of “unusual and extraordinary threat.”
- Remedies and refunds If the Court strikes down these tariffs, how will it deal with already-collected duties? Will businesses be able to seek refunds? What procedural hurdles might apply?
What companies should be doing now
We can’t predict how the Supreme Court will rule, but we can help you prepare for the possible outcomes. Here’s what makes sense:
- Document everything: Keep detailed records of tariff payments under the challenged IEEPA authority. If refunds become possible, you’ll need proof of what you paid and when.
- Track the timeline: Government briefs are due September 19, challenger responses by October 20, with oral arguments starting November 3. A decision will likely come by spring 2026. Use this timeline to plan pricing and supply chain decisions.
- Scenario plan your finances: If tariffs are invalidated, you might be eligible for refunds. If they’re upheld, you’ll continue facing these costs. Model both scenarios in your budget planning.
- Review your supply chain: Identify which products in your supply chain are subject to these specific IEEPA tariffs and how much extra cost they’re bearing.
Bottom line for space, defense & tech firms
Companies in defense, space, and biomanufacturing should pay particular attention because:
If the Court invalidates the IEEPA tariffs, it could significantly reduce your cost structure for component imports from broad markets.
Even if tariffs are upheld, compliance requirements will remain complex. You’ll need solid internal classification and customs documentation to avoid costly mistakes.
Specialized components and materials often have narrow supply sources, making any disruption in tariff policy especially impactful for technical industries.
What Maribod Global recommends
- Audit your IEEPA exposure: Identify which of your imports fall under the challenged tariffs and calculate your potential financial exposure—both for continued payments and possible refunds.
- Strengthen your documentation: Ensure your tariff payment records and import classifications can withstand scrutiny, regardless of how the Court rules.
- Consider supply chain flexibility: Evaluate alternative sourcing options that might be less affected by tariff uncertainty.
- Stay informed: The legal landscape is moving quickly. Having expert guidance helps you adapt your compliance program as developments unfold.
Final thought
As of September 2025, the Supreme Court faces a crucial question: do sweeping presidential tariffs under emergency law exceed what Congress authorized? The lower courts have said yes. Whether the Supreme Court agrees is quite consequential for defense, space, and emerging tech companies.
The reality is that regardless of how the Court rules, trade compliance won’t get simpler overnight. What changes is where the complexity sits—in emergency presidential powers, in Congressional oversight, or in your day-to-day operations.
Maribod Global helps you navigate that complexity with confidence. With 20 years of experience in ITAR, EAR, sanctions, and trade compliance, we help companies like yours stay ahead of regulatory changes rather than scrambling to catch up.
Does your company need help navigating trade compliance in this volatile climate? Contact Maribod Global today!
