The Supreme Court will hear arguments this week in a major case testing whether President Donald Trump exceeded his authority when he imposed sweeping global tariffs earlier this year under the International Emergency Economic Powers Act (IEEPA). As CBS News reported, the outcome could reshape presidential control over trade policy and determine how far the executive branch can go in declaring economic emergencies. 

For small businesses like RainCaper, a Pennsylvania-based retailer of art-inspired travel accessories, the shifting tariff rates have brought deep uncertainty. “Is it temporary? Is this the new normal?” Co-owner Lindsay Hagerman told CBS News. “You’re struggling with how do we price—do we change prices now? Wait? I don’t want to gouge people..but I also need to cover expenses.” Hagerman said her company, which imports waterproof fabrics from China, has laid off employees and cut costs as tariffs have fluctuated between 10% and 145%.

Lower courts have ruled that Trump’s tariffs exceed the authority granted by IEEPA, which allows presidents to “regulate…importation” in response to “unusual and extraordinary threats” to national security. The administration argues that trade deficits and drug trafficking qualify, while critics contend the law was never intended to authorize broad taxation powers. 

Solicitor General D. John Sauer said striking down the tariffs would have “catastrophic consequences” for national security. But small business owners warn that ongoing volatility is already threatening their survival. “My concern is there’s just going to be this mass extinction of small business,” said Julie Robbins, CEO of EarthQuaker Devices.