Crutchfield’s Bold Trump Tariff Challenge Hits Supreme Court

National electronics retailer Crutchfield is urging the U.S. Supreme Court to rein in presidential tariff powers, arguing that unpredictable duties on imported goods have paralyzed business planning. The Virginia-based company filed a friend-of-the-court brief on Friday, joining other businesses challenging President Donald Trump’s use of the International Emergency Economic Powers Act of 1977 (IEEPA) to impose sweeping tariffs.

Crutchfield imports roughly 60% of its products, many of which are not manufactured domestically. It says volatile and sudden tariff changes—some reaching at least 10%—make long-term decision-making nearly impossible. “Retailers cannot react immediately, and that inability could be catastrophic,” attorney Peter Brann wrote on behalf of Crutchfield.

Trump has repeatedly used IEEPA—originally enacted to handle national emergencies—to justify a broad tariff regime, even though the law makes no mention of tariffs. In 2024, Trump implemented reciprocal tariffs on all U.S. trading partners during what he called “Liberation Day.” While some tariffs were later paused, Crutchfield warned these pauses act like a “sword of Damocles” over businesses that must print catalogs and set prices months in advance.

Crutchfield’s filing supports a lawsuit by small businesses, Democratic-led states, and education companies that claim Trump’s tariffs exceed his legal authority. In August, the U.S. Court of Appeals for the Federal Circuit agreed, ruling 7-4 that IEEPA does not give the president congressional-level authority over tariffs. However, the court allowed existing tariffs to remain while the Biden administration appeals.

Solicitor General D. John Sauer defended the administration’s use of IEEPA, warning of “catastrophic consequences” if the president’s tariff powers are curtailed. A reversal, he argued, could damage national security and derail financial commitments made by other countries to the U.S.

Crutchfield emphasized that unlike the federal government, businesses cannot change course at will. “Pauses to announced tariffs of uncertain length and the threat of additional tariffs of unknown size paralyze Crutchfield’s ability to make intelligent business decisions,” Brann wrote.

The Supreme Court is set to hear oral arguments on November 5. Trump has said he may personally attend—an unusual move for a former president, but one that reflects the high stakes surrounding the challenge.

Customs and Border Protection reports that nearly $90 billion in tariffs have been collected since Trump’s actions began. The Congressional Budget Office projects that tariffs could raise $4 trillion over the next decade but cautions the policies will raise prices and reduce household purchasing power.

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