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The U.S. Supreme Court is set to hear oral arguments in a case testing the legal authority of President Donald Trump to use emergency powers to impose tariffs. This comes after challengers argued in lower courts that the use of the International Emergency Economic Powers Act to tax imports from other countries was unlawful.The International Emergency Economic Powers Act, or IEEPA, which was created under the Carter administration, gives the president authority to regulate a variety of economic transactions following a declaration of national emergency. The IEEPA has been invoked by the Trump administration to impose sweeping tariffs.It has been nine months since the president first announced a round of tariffs on imports from Canada, Mexico and China, and we are now seeing its effects on tariff revenues, trade and inflation.Tariff revenuesCustoms duties collections have ballooned in fiscal year 2025 compared to previous years. The U.S. Treasury's final monthly report for the year showed the federal government raised $195 billion in customs duties. This is more than double the $77 billion collected in fiscal year 2024.TradeThe United States imported a record-high volume of goods valued at $342.7 billion in March 2025, ahead of the tariff announcement on April 2. Consumer goods led the surge in imports, according to a report by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis. The report also noted a rise in imports of pharmaceutical products. After the sweeping tariffs were announced, the number of goods imported to the U.S. each month remained at about the same level as in 2024, while exports increased slightly from 2024.The trade deficit between the number of goods imported to the U.S. and exported widened in 2025 compared to the same period in prior years.InflationU.S. inflation rates have slowly increased in the months following the sweeping tariff announcements. The Consumer Price Index, which measures the average change over time in the price of goods and services, began to rise after April 2025 and has continued a steady upward trajectory. The Core CPI, which measures the average change in prices excluding food and energy, cooled down from 3.11% in August to 3.03% in September.The conservative majority on the Supreme Court has largely sided with President Trump's assertions of presidential authority. Those decisions came on the Supreme Court's emergency docket, which allows the policies to take effect on a temporary basis while litigation plays out in the lower courts.