The Supreme Court will decide if President Trump has the authority to impose sweeping tariffs under an emergency powers law. In arguments on Wednesday, justices expressed skepticism about the president's powers. Mr. Trump's tariffs have divided business owners.

Washington

The U.S. Supreme Court is reviewing a case that challenges President Trump's authority to impose broad tariffs on imports from nearly every country, citing emergency powers under a 1977 federal law. Small businesses from about a dozen states argue that the president exceeded his authority, while the administration maintains the action is legal and necessary for national interests.

During oral arguments, justices from both liberal and conservative wings expressed skepticism about the extent of presidential power to impose tariffs, with concerns raised about the impact on small businesses and the broader economy. The outcome of the case could have significant implications for the global economy and the balance of power between Congress and the presidency, with a decision expected by the end of the year.

Businesses divided as Supreme Court hears case on Trump's tariffs

The Supreme Court is considering arguments on whether President Trump has the authority to impose those sweeping tariffs, tariffs on nearly every country, using emergency powers. This case could have a very big impact on the global economy and may also set some limits on presidential power. Jan Crawford is at the Supreme Court for us, as she often is. Jan, good morning. Well, good morning, Tony. So, you know, a group of small businesses in about a dozen states are suing the Trump administration, arguing that the president just doesn't have this authority. President Trump obviously says he does. He posted just this week that the outcome of this case could mean life or death for our country. Just a few minutes into the arguments, a lawyer for the Trump administration ran into a united liberal wall. It's a congressional power, not a presidential power to tax. With the Supreme Court's senior liberal justice, Sonia Sotomayor, saying the president exceeded his authority on tariffs. And you want to say tariffs are not taxes, but that's exactly what they are. They're generating money from American citizens, revenue. But some conservatives, like Chief Justice John Roberts, also were skeptical. The exercise of the power is to impose tariffs, right? And the statute doesn't use the word tariffs. President Trump enacted the sweeping global tariffs on nearly every country earlier this year, citing large trade deficits and to stem the flow of fentanyl. I think it's the most important subject discussed by the Supreme Court in 100 years. The administration is relying on a 1977 federal law that gives presidents power to, quote, regulate imports during a national emergency. But one of the lead plaintiffs, wine importer Victor Schwartz, argues the law doesn't include the power to impose tariffs. We have wines from all over. We see Japan, sake. Schwartz says tariffs are crippling small businesses. He has to pay tariffs up front of 15 percent. What is your fear? Where is companies like mine going out of business? Or some already have. But on the West Coast, California grape growers see those tariffs as one way to help keep them in business. Jeff Bitter, president of Allied Grape Growers, says because the European wine industry gets billions in government subsidies, tariffs could help American wineries, which are at a competitive disadvantage. If we can at least be on, again, a level playing field with our global competition, it gives us a chance to showcase California. Now, even if the president loses this case, that doesn't mean it's the end of all tariffs. There's another law Trump is pointing to to impose tariffs on other products, like steel and lumber, cars, trucks. Those would remain in place, regardless of what happens in this case. I expect a decision in this case possibly by the end of this year. Gail. Jan, I know you'll be on the case. Thank you so much.

The Supreme Court heard arguments on Wednesday regarding President Trump's authority to impose tariffs unilaterally. CBS News' Katrina Kaufman has more.

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Breakdown