Supreme Court questions Trump’s tariff powers in landmark case; Warehouse demand grows as companies push through tariff uncertainty

The U.S. Supreme Court heard arguments on Nov. 5, 2025 in cases challenging whether the International Emergency Economic Powers Act (IEEPA) legitimately allowed former President Donald Trump to impose broad tariffs, as covered by Supply Chain Dive. The government argued that IEEPA grants the president wide authority to regulate imports during a national emergency, including imposing tariffs. The challengers, including states and small businesses, countered that this interpretation sidesteps Congress’s constitutional authority over taxation and tariff-setting. Throughout more than two and a half hours of questioning, several justices appeared skeptical of the government’s position. Chief Justice John Roberts pressed whether these tariffs would effectively function as taxes, which remain strictly within congressional power. Justice Neil Gorsuch warned that the government’s reading of IEEPA could allow Congress to “abdicate” its duty to regulate foreign commerce by leaving major economic decisions to the executive branch.
A ruling against the administration could trigger billions of dollars in tariff refunds and complicate trade agreements built on those duties. More broadly, the case tests the limits of presidential authority in trade policy, raises questions about the separation of powers, and may clarify the reach of the “major questions” doctrine. Its outcome will significantly shape future U.S. trade policy and supply-chain planning.

Industrial real-estate demand in the U.S. grew sharply in the third quarter of 2025, as companies advanced supply-chain expansion plans despite ongoing tariff uncertainty. Colliers International reported nearly 60 million square feet of net absorption for the quarter, a jump of roughly 20 million year-over-year. Even with rising demand, the national vacancy rate climbed to around 7.4%, reflecting shifting occupancy patterns and newly delivered space.
Markets such as Phoenix and Indianapolis led the surge, fueled by big-box tenants, build-to-suit projects, and large distribution deals. At the same time, industrial construction slowed considerably, with the amount of space under development falling to its lowest level since 2018. This tightening pipeline suggests that availability may become more constrained in coming quarters.
Companies appear increasingly willing to look beyond short-term tariff concerns and make longer-horizon logistics commitments. Major retailers, e-commerce players, and 3PLs are expanding warehouse footprints to strengthen service levels, diversify sourcing options, and improve network resilience.