Last night, the Trump administration requested that the US Supreme Court hear out an appeal to overturn a previous ruling by a lower court declaring that a majority of his tariffs are null and void.^1,2

In a 7-4 decision, the US Court of Appeals for the Federal Circuit in an Aug. 29 ruling President Trump exceeded his power in enacting the import taxes on many countries across the globe.

“It seems unlikely that Congress intended, in enacting IEEPA [the International Emergency Economic Powers Act], to depart from its past practice and grant the President unlimited authority to impose tariffs," the court said at the time of the ruling.

Background on the appeals court cases

The appeals court decision arises from two separate cases: one filed by five small import businesses—including a New York wine and spirits distributor and a Pennsylvania sport fishing retailer—and another brought by 12 states (Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, Oregon, and Vermont), the majority of which are led by Democratic governors.

Trump invoked IEEPA—a 1977 federal law that gives him the authority to control international commerce and implement economic sanctions during declared national emergencies caused by extraordinary threats to national security, foreign policy, or the economy arising outside the United States—in order to enact these tariffs on trading partners that date back to early February.

Tariffs on Mexico, Canada, China, and the European Union

However, the hearing is referring to when Trump decided to impose 25% tariffs on Mexican and Canadian imports—along with 10% on goods coming from China—to encourage these nations to act on limiting illegal immigrants and fentanyl from entering the United States.³

He also issued reciprocal tariffs on countries that are running trade surpluses with the United States—which is when the value of its exports exceeds the value of its imports. This, at the time, included a flat 10% tax on imports, along with 34% tax on imports from China and 20% on the European Union. Although tariffs on pharmaceuticals on a grander scale are expected to be forthcoming, the White House and EU did reach a deal that limits tariffs on pharmaceutical imports to 15%.⁴

Why the court ruling matters

Basically, Trump is arguing that US’ federal deficit with other nations should be considered a national emergency. Despite this, appeals court ruled that per the Constitution, only Congress has the power to issue tariffs and not a presidential authority, which would eliminate the validity of those tariffs.

Being that the ruling by the lower court would potentially be taking effect Oct. 14, the administration is requesting that the Supreme Court accelerate its review process, meaning that it would decide whether to take up the case by Sept. 10 and have holding arguments by November. It’s also important to note that the court's October 2025 term begins on Oct. 6.

Impact on pharma and US manufacturing

President Trump has been a proponent of enacting tariffs on manufacturers in order to encourage reshoring of these processes back to the United States, which has proven effective, as a plethora of companies are all-in, including Amgen, who will be financially committing upwards of $600 million into a new, state-of-the-art, science and innovation center at its global HQ in Thousand Oaks, CA.⁵

Amgen also happens to be one of the 17 pharma companies who received a letter from President Trump in late July, expressing urgency for making changes along the drug pricing front.

These letters stem from an executive order (EO) he enacted in May that proclaimed that pharma companies need to treat the United States as a most-favored nation (MFN) as it pertains to drug pricing. The EO notes that US drug prices need to be less than or equal to the drug’s lowest price in other nations, as a way of establishing fairness. Essentially, the letters explain what he looks to accomplish from the MFN order while providing a timeline until the Sept. 29 compliance date.

References

1. Chung A. Trump Takes Tariffs Fight to US Supreme Court. Reuters. September 4, 2025. Accessed September 4, 2025. https://www.reuters.com/world/us/trump-takes-tariffs-fight-us-supreme-court-2025-09-04/

2. Doherty E. Trump Asks Supreme Court to Quickly Hear Appeal to Save His Tariffs. CNBC. September 3, 2025. Accessed September 4, 2025. https://www.cnbc.com/2025/09/03/trump-tariffs-trade-supreme-court.html

3. Saraceno N. As Trump Pharma Tariff Deadline Looms, Here's How the Sector Got Here. Pharmaceutical Commerce. July 31, 2025. Accessed September 4, 2025. https://www.pharmaceuticalcommerce.com/view/trump-pharma-tariff-deadline-looms-how-sector-got-here

4. Saraceno N. White House and EU Finalize Trade Deal With 15% Cap on Pharma Tariffs. Pharmaceutical Commerce. August 21, 2025. Accessed September 4, 2025. https://www.pharmaceuticalcommerce.com/view/white-house-eu-trade-deal-15-percent-cap-pharma-tariffs

5. Saraceno N. Amgen to Invest $600M in New Science and Innovation Center at California HQ Pharmaceutical Commerce. September 3, 2025. Accessed September 4, 2025. https://www.pharmaceuticalcommerce.com/view/amgen-to-invest-600m-in-new-science-and-innovation-center-at-california-hq