The Port of Portland’s Terminal 6 entrance on June 11, 2024, in Portland, Ore. Terminal 6 is home to the states’ only international shipping container service, a vital resource for Oregon farmers, ranchers and other exporters.
Kyra Buckley / OPB
The U.S. Supreme Court will hear arguments Wednesday from Oregon, other states and businesses that oppose the Trump administration’s tariffs that have upended long-standing international trade agreements.
In April, the Oregon Department of Justice led a coalition of a dozen states that sued over the president’s signature trade strategy. The states argued the U.S. Congress, not the president, has the power to impose and collect taxes under the U.S. Constitution.
Economists have warned Oregon businesses and farmers could get hit especially hard. The state is highly trade-dependent. Last year, companies in Oregon exported more than $34 billion and imported $28 billion in parts and finished products.
Since widespread tariffs hit earlier this year, Oregon businesses from a range of industries say the import taxes are raising the cost of doing business. Some companies are passing higher costs on to customers, while others are holding off on hiring or starting new projects.
Who are the parties opposing the Trump administration’s tariffs and what are they arguing?
FILE – Peppers are pictured at a market in Cleveland, Ohio, July 16, 2025.
Sue Ogrocki / AP
Lawsuits from multiple states, businesses, cities and other organizations all opposing the new tariffs have been consolidated into the one case presented in front of the nation’s high court.
The states argue tariffs will harm their economies by raising costs for small businesses, and ultimately for consumers. Businesses argue that even if they wanted to source more products from the U.S., the supply chains don’t exist here. Industries such as technology, health care and food production rely on imported goods to keep their companies running.
Related: Oregon attorney general sues the Trump administration over tariffs
President Trump has argued he has the authority to levy tariffs under the International Emergency Economic Powers Act (IEEPA). Historically, the law has been used to sanction countries that pose a threat to international peace. Economists say it has never been used to justify tariffs, which are import taxes paid by companies directly to U.S. Customs and Border Patrol.
Oregon and the other parties suing the Trump administration say only Congress has the power to levy taxes.
What does the Trump administration say about their tariffs?
President Trump has made tariffs the focus of his economic overhaul, claiming they will raise revenue for the U.S. while rekindling the country’s manufacturing sectors.
Over the past 10 months, Trump has announced multiple different tariffs only to roll some of them back. However, the only ones being challenged before the Supreme Court on Wednesday are those Trump levied under IEEPA. They include tariffs imposed against Mexico, Canada and China, which the president has said are meant to stop the flow of fentanyl to the U.S. The other tariffs levied under IEEPA were widespread import taxes against nearly every country that the administration says will correct trade imbalances.
“The stakes in this case could not be higher,” the Trump administration wrote in its petition to the Supreme Court. “The President and his Cabinet officials have determined that the tariffs are promoting peace and unprecedented economic prosperity, and that the denial of tariff authority would expose our nation to trade retaliation without effective defenses and thrust America back to the brink of economic catastrophe.”
Why is Oregon arguing the case before the nation’s high court?
Oregon’s lawsuit first went in front of the International Trade Court in New York, which ruled in favor of Oregon and the other states. The Trump administration appealed the Trade Court’s decision to the U.S. Court of Appeals for the Federal Circuit, which also ruled in favor of the states in late August.
The Trump administration appealed that ruling to the Supreme Court, and the justices agreed to hear the case. The lawsuit led by Oregon and the 11 other states was then combined with other cases from businesses and entities also challenging the president’s authority to levy import taxes under IEEPA.
