The U.S. tariff dispute has reached the Supreme Court for the first time! Two toy companies challenge Trump's tariffs.

Two American family toy companies filed a direct application to the Supreme Court on Tuesday, challenging Trump's tariffs, claiming that he abused the International Emergency Economic Powers Act of 1977 by imposing taxes beyond his authority, and requested the Supreme Court to expedite the review, which could result in a final ruling before the end of the year.

Written by: Zhao Yuhe

Source: Wall Street Knowledge

CCTV News reported that on June 17 local time, a toy company in Illinois, USA challenged the Trump administration's tariff policy in the Supreme Court, attempting to urge the judges to quickly rule on its legality.

According to reports, the company has filed an appeal requesting the Supreme Court to expedite the handling of the case instead of allowing it to continue in the lower courts. The company claims that the Trump administration imposed tariffs illegally based on emergency powers without congressional approval. Although the company won a preliminary victory in the lower court, the order was temporarily put on hold due to the appellate court considering a similar ruling that would more broadly block the Trump administration's tariffs. The appellate court allowed the Trump administration to continue imposing tariffs under the emergency powers act before the scheduled debate at the end of July.

Media reports indicate that the plaintiff companies are requesting the Supreme Court to expedite the hearing, with a possibility of a final ruling before the end of the year. The requesting companies, Learning Resources and hand2mind, stated that the issue of Trump's authority to impose tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA) is of significant economic interest, and therefore the court should intervene immediately. The two companies wrote in their application:

"Due to the significant impact these tariffs have on nearly all businesses and consumers across the country, the President's claimed unlimited authority to impose tariffs has led to ongoing turmoil, so the challenge to the IEEPA tariffs cannot wait for the normal appeals process."

White House spokesperson Kush Desai stated:

"The Trump administration is lawfully using the powers granted to the executive branch by the Constitution and Congress to respond to emergencies. If the Supreme Court decides to hear this baseless legal challenge, we are confident we will ultimately prevail."

Previously, Washington Federal District Judge Rudolph Contreras ( ruled on May 29 that Trump exceeded his authority under the IEEPA, although this ruling was limited to the two companies involved in the lawsuit. Judge Contreras stated that this wording does not authorize the president to impose taxes. "The power to regulate is not equivalent to the power to tax," he wrote.

The Trump administration subsequently appealed, and the two companies are now requesting the Supreme Court to directly review Contreras's ruling. The companies hope the court will decide whether to accept the case before the summer recess in two weeks and schedule a hearing in September or October.

Involved Company: Rebuilding the Supply Chain Feels Like Fleeing from Disaster

Rick Woldenberg, the CEO of the aforementioned toy company, stated in a media interview that they now have to allocate 30% of their office staff to handle tariff issues.

"We are facing enormous additional expenses, having almost completely rebuilt a supply chain that has been in operation for 40 years overnight. I feel like someone fleeing from a war, loading things onto a donkey cart, heading to a safer place, but not knowing if that place is truly safe."

According to CCTV News, on April 2, U.S. President Trump announced a wide-ranging reciprocal tariff targeting the world, causing a stir in the global trade market. On April 9, Trump suspended reciprocal tariffs on most U.S. trading partners for a period of 90 days, delaying the effective date of the high tariffs to July 9.

The tariffs on April 2 represent the largest increase in U.S. tariffs since the 1930 "Smoot-Hawley Tariff," bringing the average applicable tariff rate in the U.S. to its highest level in over a century. Since Trump announced the so-called "reciprocal" tariffs through a comprehensive executive order, global markets have been highly volatile. Amid weeks of delays, policy reversals, and announcements of potential trade agreements, the market value has evaporated and partially recovered by trillions of dollars.

Media reports that the deadline for the suspension is approaching. If there is no trade agreement or extension by then, the tax rates on imported goods from multiple countries will rise significantly. For example, EU goods will face a 50% tariff.

It is worth noting that the tariffs imposed by Trump on steel, aluminum, and automobiles are implemented under another law and are therefore not within the scope of this case. According to CCTV News, on June 3 local time, the White House stated that President Trump announced an increase in the tariffs on imported steel, aluminum, and their derivative products from 25% to 50%. This tariff policy will take effect at 00:01 Eastern Time on June 4, 2025.