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
RFD-TV Legal Expert Roger McEowen with Kansas’ Washburn School of Law breaks it down in his latest Firm to Farm blog post.
The Mississippi Farm Bureau honors farmer and longtime state legislator Rep. Bill Pigott with the 2024 Distinguished Service Award.
Legal issues can arise for farmers and ranchers when conducting business informally or in another state. RFD-TV Ag Law & Tax Expert Roger McEowen explores both topics in his latest Firm to Farm blog post.
CEO, Jeanette Lombardo spoke with RFD-TV’s own Tammi Arender on FVC’s mission, transitioning from the military to agriculture, and success stories.
Sgt. Strunk served as a gunner aboard an M48A2 tank while stationed in Germany during the Cold War as part of the US 3rd Infantry Division.

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:

Evan Keppy, a member of Iowa’s North Scott FFA Chapter, shares how the National FFA Organization helped shape his leadership skills.
Farm CPA Paul Neiffer joins us to provide an updated analysis of projected ARC and PLC payments and potential delays due to the ongoing government shutdown.
Approximately 42,000 birds were affected in the outbreak, officials said.
Beef demand could be influencing other economic sectors, as consumers adjust spending habits to prioritize higher-priced beef products.
AFBF Economist Bearnt Nelson joins us with insights into current turkey flock sizes, HPAI concerns, and production impacts on holiday demand.
Dr. Beetham outlined the background of the EU’s decision to modernize seed regulations and where the process stands today, and its impact on global agriculture and food security.