The US Supreme Court’s forthcoming decision on whether the International Emergency Economic Powers Act (IEEPA) can be used to impose sweeping tariffs is more than a legal dispute – it is a potential pivot in US trade governance. For Swedish exporters, the stakes are clear: a shift here could alter cost structures, supply-chain strategies, and access to the US market.

Timeline

  • Oral arguments concluded on 5 November 2025 
  • A final ruling is expected by July 2026
Presidential power and predictability

At its core, the case raises questions about whether the US President can unilaterally impose broad import duties under the IEEPA, thereby challenging the balance of powers and the issue of legal authority. During oral arguments on 5 November, several justices expressed concern about the scope of executive power. The “major questions doctrine” – which requires explicit congressional authorisation for significant economic actions – was a recurring theme.

Overall, the administration has sufficient tools at its disposal to achieve comparable tariff revenue in coming years, even if invoking IEEPA is no longer an option. Atlantic Council
Judicial signals and market impact

The ruling will have global implications. The justices probed whether using IEEPA for tariffs oversteps constitutional boundaries and blurs the separation of powers. Several suggested that tariffs function as taxes – a domain reserved for Congress – and challenged the idea that emergency powers could justify sweeping trade measures without explicit legislative backing.

While some pointed to historical precedents, the overall tone signalled scepticism toward broad executive authority in trade policy, hinting at a possible shift toward more rules-based governance.

Supply chains and strategy

A narrowing of presidential tariff authority could, over time, favour more predictable trade relations. However, Swedish companies should not interpret this as a signal to delay action. Even if future tariff decisions require greater legislative oversight, timing remains uncertain, and other legal instruments could still be used to impose disruptive measures.

A ruling that limits executive power may reduce systemic risk and improve planning conditions for pricing, logistics, and margins. If broad authority is upheld, tariffs could continue to be introduced swiftly and unpredictably. Swedish firms should maintain contingency strategies and actively monitor US trade developments. Supply-chain agility and diversification remain critical – not only to seize future opportunities, but also to mitigate near-term risks.

Key actions for Swedish companies:
  • Review exposure to IEEPA-linked tariffs.
  • Reassess sourcing to strengthen rule-based supply-chain links.
  • Maintain agility in case other statutes are used to impose tariffs.
  • Stay informed on the Court’s decision, congressional responses, and sector-specific investigations.
Get in touch

Business Sweden has extensive experience in tariff scenario analyses, localisation strategies, and supplier evaluations.

To help Swedish SME companies navigate these shifts, Business Sweden has launched the US–Sweden Tariff Intelligence & Advisory platform. The initiative provides real-time tariff updates, practical implementation tools, and access to expert-led sessions and peer learning. It also connects you with vetted customs brokers and logistics partners to support compliance and supply-chain resilience.

If you need support in assessing your supply chain or are interested in joining the platform, please contact Johan Karlberg or Vlad Månsson

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