Supreme Court Scrutinizes Tariff Powers with Major Consequences for Agriculture

The Court may limit emergency tariff powers, complicating a key bargaining tool; ag could see shifts in input costs and export dynamics as China, Brazil, and India talks evolve.

WASHINGTON, D.C. (RFD-TV) — The Supreme Court sounded wary of using the emergency-powers law (IEEPA) to levy broad tariffs, pressing whether Congress ever authorized the White House to tax imports at scale.

Reports from the chamber on Wednesday described bipartisan skepticism and repeated references to Congressional tariff authority, alongside questions about potential refunds of roughly $90 billion already collected. A ruling could narrow or reshape unilateral tariff tools used since 2025.

In agriculture, the case intersects with the administration’s leverage strategy: tariffs have been wielded to push partners to the bargaining table—from China’s Phase One purchases to current high-stakes talks with Brazil and India. Analysts note that while tariffs can force negotiations, they also invite retaliation and raise costs on steel, equipment, chemicals, and other farm inputs. If the Court curbs IEEPA tariffs, the White House may still reach for other trade statutes, but the scope and speed could change.

Near-term, growers face policy uncertainty as markets handicap outcomes and partners watch for signals. Negotiations with India continue amid steep U.S. duties; Brazil talks are active as tariffs ripple through beef and other flows; and China remains a touchstone for how tariff pressure translates into concessions. The decision, expected in 2026, will shape input costs, export access, and the playbook for future trade deals.

Farm-Level Takeaway: The Court may limit emergency tariff powers, complicating a key bargaining tool; ag could see shifts in input costs and export dynamics as China, Brazil, and India talks evolve.
Tony St. James, RFD-TV Markets Expert
Related Stories
Expanding cheese exports are strengthening U.S. milk demand and reinforcing global competitiveness.
Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.
Record pace corn exports are helping stabilize prices despite softer global grain production and ongoing supply competition.
Broader export demand helps stabilize prices and supports stronger marketing opportunities over time.
A narrower Section 1071 rule could reduce regulatory pressure on ag lenders while keeping credit available in rural communities.
The U.S. Forest Service takes us on the same journey from a tree farm in Nevada across America to experience the magic of Christmas in the U.S. Capitol.
Rep. Randy Feenstra, R-IA, details how the “One, Big, Beautiful Bill” Act (OBBBA) supports farmers, biofuels, and rural communities with tax breaks, crop insurance relief, and ag infrastructure.
Oregon FFA CEO Kjer Kizer discusses the proposed budget reductions, potential consequences, and the importance of protecting learning opportunities for students interested in agriculture.
RealAg Radio host Shaun Haney explains why the 2026 USMCA review could directly affect dairy access, produce competition, and export reliability for U.S. farmers and ranchers.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

As National Advisor, Carson will counsel both President Trump and Secretary Rollins on nutrition, healthcare access in rural areas, and housing. He will also serve as a key member of the MAHA Commission.
Farmers should anticipate continued upward pressure on farm labor costs and monitor policy changes that may further impact hiring decisions.
Cotton farmers should weigh potential PLC payments against STAX coverage and act before the September 30 deadline.
What is it like working cattle with an outbreak of New World Screwworm so close to home? Wayne Cockrell, with the Texas and Southwestern Cattle Raisers Association, joined us on Wednesday to discuss.
Kevin Charleston with Specialty Risk Insurance joined us Tuesday to share his perspective on farm safety and risk management during fall harvest.
U.S. produce growers face a structural disadvantage—cheaper imports driving down prices while rising labor costs squeeze margins. Without new policies or technology, profitability remains uncertain.