ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Supreme court ruling on Friday could reshape the future of Trump-era tariffs

A potential ruling on the legality of the sweeping tariffs may have huge implications on the economy.
PUBLISHED JAN 7, 2026
 U.S. President Donald Trump holds up a chart showing the reciprocal tariffs (Cover image source: Getty Images/Photo by Chip Somodevilla)
U.S. President Donald Trump holds up a chart showing the reciprocal tariffs (Cover image source: Getty Images/Photo by Chip Somodevilla)

President Donald Trump's sweeping emergency tariffs have come under legal scrutiny in the U.S. Supreme Court, apart from widespread criticism. On Tuesday, the court indicated on its website that it could release decisions in argued cases when the justices take the bench during a scheduled sitting on Friday. However, it isn't clear if the ruling on the tariffs will be a part of the verdicts, as the court does not announce ahead of time which rulings it intends to issue.

Representative image of activists outside the Supreme Court on November 5, 2025 (Image source: Getty Images/Photo by Andrew Harnik)
Representative image of activists outside the Supreme Court on November 5, 2025 (Image source: Getty Images/Photo by Andrew Harnik)

The cases challenging the legality of the Trump administration's tariffs have been closely watched for months, as the ruling will have major implications for the U.S. economy and global trade. Previously, on November 5, the conservative and liberal justices heard arguments of the case and appeared to cast doubt on the legality of the tariffs, as the president invoked a 1977 law that is meant for use during national emergencies.

The case challenged the administration's legal authority to use the 'International Emergency Economic Powers Act' to impose the tariffs without congressional approval. After lower courts ruled that the president exceeded his authority, the cases were passed on to the U.S. Supreme Court. Back in November, during the hearings of the cases, Chief Justice John Roberts, Justice Sonia Sotomayor, and Justices Amy Coney Barrett and Neil Gorsuch drew scepticism over the president's authority to take such actions, as per The Hill.

Charts showing the “reciprocal tariffs” the U.S. is charging other countries are on display at the James Brady Press Briefing Room of the White House on April 2, 2025 (Image source: Getty Images/Photo by Alex Wong)
Charts showing the “reciprocal tariffs” the U.S. is charging other countries are on display at the James Brady Press Briefing Room of the White House on April 2, 2025 (Image source: Getty Images/Photo by Alex Wong)

Meanwhile, the Republican president has continued to express concern over losing the case and the tariffs being struck down. Last week, he stated that a ruling against the tariffs will be a "terrible blow" to the U.S. on his social media platform, Truth Social. "Because of Tariffs, our Country is financially, AND FROM A NATIONAL SECURITY STANDPOINT, FAR STRONGER AND MORE RESPECTED THAN EVER BEFORE," Trump added in another post on Monday. The court’s 6-3 conservative majority mostly avoided direct confrontations with Trump in 2025 and handed him a series of wins, which drew criticism from lower courts and some judges.

(Image Source: Getty Images| Photo by Chip Somodevilla)
U.S. President Donald Trump holding the board showing the reciprocal tariffs (Image Source: Getty Images| Photo by Chip Somodevilla)

However, as per CNBC, this is likely to change in 2026, as the court has pushed several contentious rulings into the new year. Apart from the tariffs, the court is set to rule on the president's plan to curtail automatic birthright citizenship and his attempt to fire a member of the Federal Reserve’s powerful board of governors, Lisa Cook. The Supreme Court has a long history of delaying ruling until a president has lost some of his post-election power and popularity, before handing out legal losses, as per the publication. The court is now about to issue definitive rulings, not provisional decisions.

Source: GettyImages | Kevin Dietsch  Staff
The U.S. Supreme Court Building (Image source: Getty Images/ Photo by Kevin Dietsch Staff)

As per Reuters, the court has a busy few months ahead of it as it is set to hear arguments on January 13, in a bid to enforce Republican backed state laws that ban transgender athletes from participating in female sports teams at public schools. On January 21, the court will hear arguments on Trump's attempt to remove Cook, a move without precedent that challenges the central bank's independence.

More on Market Realist:

Americans will feel the real impact of Trump's tariffs as economy looks grim in 2026

Trump's tariffs quietly forced 700 American companies to file for bankruptcy in 2025

Wells Fargo urges Americans to stock up on these items ASAP as tariffs could make them pricier

MORE ON MARKET REALIST
The newly introduced Trump accounts have the same tax advantages as IRAs.
13 hours ago
While the IMF warned the current administration's policies could make deficits worse.
13 hours ago
Fans couldn't believe how a contestant failed to secure just 31 points out of the 200 that his partner had scored.
17 hours ago
While the answer touched Harvey's heart, he was sure nobody would do that for a celebrity.
18 hours ago
Trump's claims were both partially true and ridiculous, according to industry analysts.
21 hours ago
People on social media accused the actor of being a hypocrite, urging him to step up first.
1 day ago
Trump's pledge sounds empty as OBBBA has shaved over $1 trillion in social safety nets funding.
1 day ago
While her answer wasn't technically wrong, the survey begged to differ.
1 day ago
After getting three zeros on the board, Nori had the impossible task of winning with two answers
1 day ago
An underlying stock rotation has triggered a potential countdown to a crash.
2 days ago
Harvey couldn't pass up the opportunity to take a jab at J-Lo's relationship status
2 days ago
While the president championed his policies, the ground reality tells a woeful tale.
2 days ago
Companies will be in no rush to reduce prices as trade uncertainty continues, the bank noted.
3 days ago
Trump threatened to use different laws to punish countries that back away from negotiated deals.
3 days ago
Despite his experience, Harvey didn't know much about the prep that goes into competing on the show
3 days ago
With slacking consumer spending and the 43-day shutdown, the GDP grew by just 1.4%.
6 days ago
Economist Joseph Stiglitz claimed no policy was helping boost blue-collar jobs amid automation.
6 days ago
Turns out a hug from James O'Halloran was worth more than the cash for Nikki.
6 days ago
Although the player was off in her guess by nearly $10, she had a buffer to work with.
6 days ago
Harvey was excited to learn how Amrett impressed his dates.
6 days ago