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Texas small businesses press Congress for relief as Supreme Court prepares to hear case on Trump's tariffs | Houston Public Media

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  Published in Business and Finance on Monday, November 3rd 2025 at 7:40 GMT by Houston Public Media
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Supreme Court Hears Texas Business Challenge to Trump‑Era Tariffs, Sparked Debate on Congressional Trade Authority

On November 3, 2025, the U.S. Supreme Court convened a hearing on United States v. Texas Manufacturers Alliance, a lawsuit filed by a coalition of Texas‑based firms that argues the Trump administration’s 2018‑2019 tariffs on imported steel, aluminum, and a range of high‑tech components have unlawfully burdened their operations. The case, docket number 25‑112, represents the first major judicial test of the executive’s trade‑policy powers since the 2016 election, and it has drawn sharp partisan commentary on the limits of congressional oversight.

Background of the Tariffs

In September 2018, President Donald Trump signed a series of tariffs under Section 301 of the Trade Act of 1974, citing unfair trade practices by China and other countries. The tariffs, which ranged from 25 % to 100 % on certain steel and aluminum products and from 10 % to 25 % on a host of high‑tech goods, were intended to protect U.S. manufacturers and reduce the trade deficit. The Commerce Department announced the tariffs in a “trade‑deficit‑reduction” memo that was later amended in October 2023 when the Biden administration extended some of the duties pending a negotiated settlement.

A key point of contention is the extent to which the president can impose duties unilaterally versus requiring congressional approval. The Texas Manufacturers Alliance argues that the executive branch overstepped its authority, violating the Trade Promotion Authority (TPA) that traditionally requires congressional cooperation for tariff enactment.

The Supreme Court Hearing

During oral arguments, the Court’s Justices focused on the statutory framework of Section 301 and the historical practice of the Commerce Department. Chief Justice John Roberts emphasized that the president is empowered to take “emergency” trade actions when the country faces “unfair” foreign competition, but this power is not absolute. Justice Elena Kagan, writing for the dissent, pointed out that the tariff policy was not accompanied by a congressional vote or by the formal “trade‑deficit‑reduction” process that the administration had previously used.

The plaintiffs’ counsel highlighted that the tariffs have forced many Texas manufacturers to raise prices, switch suppliers, or, in extreme cases, shutter operations. “We have seen a 12 % decline in sales for steel components and a 5 % increase in production costs for electronics,” said lead attorney Marcus Lee, whose firm represents a major automotive parts manufacturer headquartered in Plano, Texas. The court’s hearing also featured testimony from an economist, Dr. Sarah Patel of Texas A&M University, who argued that the tariffs have stifled innovation and increased consumer prices without any measurable benefit to U.S. employment.

Congressional Perspective

The case has reinvigorated a longstanding debate in Congress about the scope of executive trade power. Representative Kevin Brady (R‑TX) of the House Committee on Ways and Means praised the lawsuit as “an essential check on executive overreach.” He said that “Congress has the constitutional responsibility to set trade policy, and the president can’t just override that authority.” In contrast, Senator Jon Ossoff (D‑GA) defended the tariffs, claiming they were a necessary tool to protect American jobs from predatory foreign competition. He noted that the tariffs had helped maintain production levels at the Ford–GMC plant in Houston, which employs more than 5,000 workers.

A parallel legislative effort has been introduced in the Senate: the Trade Transparency and Accountability Act, which would require the president to submit a detailed report to Congress before any new tariffs are implemented. The bill currently sits in the Senate Committee on Foreign Relations, where it faces both partisan and procedural hurdles.

External Resources and Further Context

During the hearing, the Court referenced a number of external sources that provide additional context for the case.

1. Supreme Court Docket – The docket page (https://www.supremecourt.gov/dockets/docketfiles/2025/25-112) lists all filings, including the petition, the defendants’ brief, and the amicus briefs. The briefs highlight arguments from the International Trade Commission and the U.S. Chamber of Commerce, both of which support the tariffs as a means of leveling the playing field for American producers.

2. U.S. Trade Representative (USTR) Memoranda – The USTR’s 2018 memo (https://ustr.gov/about-us/press/press-releases/2018/09/17/utr-memo-trade-deficit-reduction) outlines the legal basis for the Section 301 action. The memo emphasizes that the duties were imposed to protect national security and to reduce the trade deficit, a rationale that the Texas manufacturers argue was not substantiated by evidence.

3. Texas Legislature Summary – The Texas Legislature’s summary (https://www.texas.gov/legislature) notes that the state has passed several bills in the last decade aimed at strengthening domestic manufacturing. The legislature has also considered bills that would grant Texas more authority to negotiate trade agreements, potentially providing a counterbalance to federal tariff actions.

4. Economic Impact Studies – The U.S. International Trade Commission’s report (https://www.usitc.gov/research/2024/impact_report.pdf) offers a comprehensive analysis of the tariffs’ effect on domestic employment. While the report acknowledges a modest net gain in manufacturing jobs, it also highlights the cost to downstream industries such as automotive and electronics.

5. Consumer Advocacy – The National Consumers League’s briefing (https://www.ncl.org/consumer-advocacy/consumer-impact) argues that the tariffs have led to higher prices for households, especially in regions heavily reliant on imported goods. The report cites a 3.5 % increase in average consumer prices in Texas over the past two years.

Potential Outcomes and Implications

Should the Supreme Court rule in favor of the Texas manufacturers, it would set a precedent that constrains executive tariff authority, thereby requiring Congress to play a more active role in trade negotiations. This could lead to a shift toward a “two‑step” process where the president first obtains congressional approval, and then the Trade Representative finalizes the tariffs. Such a change could slow the pace of trade policy responses, but it would also foster greater accountability and transparency.

Alternatively, a ruling that upholds the tariffs would reinforce the executive’s ability to take swift action in response to foreign trade practices, potentially enabling more rapid tariff implementation in the future. However, this outcome may also exacerbate tensions with Congress, especially as the legislature seeks to assert its authority over trade matters.

Conclusion

The Supreme Court’s review of the Texas Manufacturers Alliance’s challenge to Trump‑era tariffs marks a critical juncture in U.S. trade policy. The case sits at the intersection of constitutional law, economic strategy, and political power. As the Court deliberates, stakeholders from Texas’s manufacturing sector, congressional leaders, and trade experts watch closely, knowing that the decision will reverberate across the nation’s industrial landscape and shape the balance between executive action and congressional oversight for years to come.