Former President Donald Trump has sounded the alarm over recent court rulings challenging the president’s authority to impose tariffs, warning that a limitation on this power could lead to economic disaster reminiscent of the Great Depression. This controversy comes amid a wave of litigation over tariffs Trump issued under the International Emergency Economic Powers Act (IEEPA), targeting countries like Mexico, Canada, and China, and later expanding to sweeping tariffs covering a broad range of imported goods.

Two separate federal courts have issued conflicting decisions on whether the president has the legal authority under IEEPA to enact such tariffs. While one court concluded that this authority does not extend to unbounded tariff measures, another court supported a broader interpretation. These opposing rulings are expected to move to the Supreme Court, adding urgency and uncertainty to the policy debate. Billions of dollars in potential trade refunds, the global standing of U.S. trade policy, and the future role of the presidency in economic affairs hang in the balance.

Trump and his supporters argue that restricting presidential tariff powers would undermine the United States’ ability to defend its economy and could set the stage for a severe market crash, drawing parallels to the 1929 stock market collapse. Meanwhile, critics claim that unchecked executive authority to set tariffs threatens the balance of democratic power and risks instability in international trade.

With the appeals process moving quickly and legislative discussions ramping up, the eventual Supreme Court decision will likely have far-reaching consequences for importers, exporters, manufacturers, and everyday consumers. The outcome will not only shape trade policy but may also redefine the limits of U.S. executive power and congressional oversight in setting tariffs and responding to global economic challenges. As the debate intensifies, businesses and policymakers alike face heightened uncertainty about the future of American trade.