The US Supreme Court is meeting on Wednesday to consider the legality of President Trump's global tariffs, in what many experts see as the next hurdle to face the US president and his tariff regime.

The court, which has a 6-3 conservative majority, has previously backed Trump in a series of decisions this year. It will hear the Trump administration's appeal after multiple lower courts ruled that the president overstepped his authority when imposing his "Liberation Day" tariffs back in April.

At stake is the legitimacy of the president's signature economic policy, with the outcome set to offer significant ramifications for the global economy and its businesses and consumers.

As Yahoo Finance correspondent Ben Werschkul has detailed, experts are split on the ultimate verdict the court will hand down. Trump, meanwhile, has made clear he considers the case to be of paramount importance to his legacy, even as his administration touts the other legal avenues he could use to impose the duties.

Trump on Tuesday said the case is "literally LIFE OR DEATH for our country."

Read more: What Trump's tariffs mean for the economy and your wallet

The US and China reached a trade truce last week. The thaw means China will suspend additional export controls on rare earth metals and end investigations into US chip companies. Meanwhile, the US will pause some of Trump’s "reciprocal tariffs" on China for another year and will halt plans to slap a 100% tariff on Chinese exports to the US.

China announced on Wednesday that it will remove its tariffs on US farm goods, in response to the US removing fentanyl related tariffs on Beijing's exports.

On Sunday, Trump said that the most advanced Nvidia (NVDA) chips will be reserved for US companies and kept out of China and other countries.

A spat over an ad featuring the late Ronald Reagan continues between the US and Canada. The Canadian prime minister said recently he apologized to Trump over the ad.

The US Senate has passed several resolutions that would end several of Trump's country-specific tariffs, in a rare rebuke of the president from several members of his own party.

Toyota (TM) stock fell 2% in premarket trading on Wednesday after reporting a drop in profit in its third quarter earnings. The Japanese automaker said President Trump's tariffs have harmed the sector.

The AP reports:

Net profit for the April-September period at Toyota Motor Corp. totaled 1.77 trillion yen ($11.5 billion), down from 1.9 trillion yen a year earlier.

But the maker of the Camry sedan and Lexus luxury models lifted its profit forecast for the full fiscal year ending in March 2026 to 2.93 trillion yen ($19 billion), citing better vehicle sales and cost-cutting efforts.

The forecast would represent a 38.5% drop from the 4.77 trillion yen profit Toyota reported for the last fiscal year. It had earlier forecast 2.66 trillion yen ($17 billion) in profit for this year.

Although tariffs are hurting its business, Toyota said its sales grew in the U.S. and its home market of Japan.

U.S. tariffs on Japanese automobiles and auto parts fell to 15% in September from the 27.5% rate Trump initially ordered after returning to the White House. That's much higher than the original 2.5%.

Japan’s exports to the U.S., including vehicles, have plunged recently.

But Toyota said its efforts, such as bigger sales, better model mix and cost cuts, will add more than 900 billion yen ($5.8 billion) to the company’s bottom line in this fiscal year.

Read more here.

China announced on Wednesday that it will remove tariffs on US farm goods in response to the US removing fentanyl-related tariffs on Beijing's exports.

This latest move from China is part of the broader trade pact between President Trump and China's Xi Jinping last week, when the two sides agreed to a one-year trade truce.

Bloomberg News reports:

The country’s Ministry of Finance confirmed in a notice on Wednesday that it will end all tariffs imposed March 4 on soybeans and other US agricultural products including corn, wheat, sorghum and chicken. The move was previously flagged in a White House fact sheet.

The cancellation — to take effect Nov. 10 — comes hours after US President Donald Trump signed a pair of executive orders. They formalized slashing fentanyl-related levies on Chinese exports to 10% and bringing down the reciprocal US tariff rate from 34% to 10%.

The moves are part of a broader trade pact between Trump and Chinese leader Xi Jinping that’s set to last one year and has, at least temporarily, stabilized what had been a turbulent relationship. Before their summit in South Korea last week, the two leaders had been locked in a cycle of actions and retaliations on trade.

Read more here.

President Trump's tariffs now rest largely in the hands of three of the US Supreme Court Justices that he appointed. The court will consider the fate of Trump's tariffs on Wednesday.

Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett were all appointed by Trump and have generally backed the president in most of his emergency orders this year, allowing Trump to implement his policies on a temporary basis.

But this will be the first time the court addresses the issue of whether Trump overstepped his authority with his \\"Liberation Day\\" tariffs.

Bloomberg News reports:

To varying degrees, the Trump appointees have hinted that they aren’t sure bets to back him as he seeks unprecedented authority to levy tariffs in the name of addressing national emergencies.

“I don’t think it’s inevitable that this is going to be a sort of partisan alignment, or the sort of standard 6-3 alignment that we’ve seen in some other cases,” said Roman Martinez, an appellate lawyer at Latham & Watkins who helped file a brief for the US Chamber of Commerce opposing the tariffs.

The case will decide the fate of most of the import taxes Trump has imposed since taking office, including his April 2 “Liberation Day” tariffs.

Trump says the tariffs are authorized by the 1977 International Emergency Economic Powers Act, which gives the president a panoply of tools to address national security, foreign policy and economic emergencies – but doesn’t explicitly authorize tariffs. Administration lawyers say the national trade deficit and fentanyl crisis constitute emergencies that let the president invoke the law and impose tariffs on trillions of dollars of trade.

Here’s a look at how each Trump appointee might approach the case, along with another key figure, Chief Justice John Roberts. The companies and states challenging the levies will probably need the votes of two of the four to win the case.

Read more here.

Yahoo Finance's Ben Werschkul reports:

Tariff watchers have had this Wednesday circled on their calendars for weeks now, as the Supreme Court is set to hear arguments on the legality of the authority President Trump has used to impose the lion's share of his tariffs.

That’s in part because observers are split about how things will play out once deliberations begin and ahead of a decision that could come before the end of the year.

The case — formally known as Learning Resources, Inc. v. Trump — is one that experts in both the legal and trade space are calling a toss-up. And it's made all the more fraught by Trump's keen personal interest in the outcome and a White House public pressure campaign already in evidence.

As for the projections, the odds are notable in how little confidence there is in any outcome.

In a Yahoo Finance interview recently, both Raymond James managing director Ed Mills and Veda Partners managing partner Henrietta Treyz floated coin-flip level 50% odds, with Treyz adding a base case from \\"50% to 65% odds that the Supreme Court will side with two lower courts and say the president doesn't have this authority.\\"

Read more here.

The next hurdle for President Trump, following his meeting with China's leader Xi Jinping last week, will be the Supreme Court hearing on Wednesday, which will decide the legality of Trump's \\"Liberation Day\\" tariffs.

Trump said he doesn't plan to attend the hearing, but emphasized how important it is for the American people. So here's what's riding on the landmark case.

CNN reports:

Almost $90 billion in tariff revenue

As of September 23, American businesses have paid nearly $90 billion to cover the IEEPA tariffs being challenged, according to US Customs and Border Patrol data. That’s more than half of the tariff revenue the country collected during the 2025 fiscal year, which ended on September 30.

Earlier this month, Trump said in an interview with Fox Business that if the Supreme Court ruled against him, “we’d have to pay back money” and reimburse companies for the billions of dollars they have already paid.

Trade agreements

The threat of instantly imposing higher tariffs is a key tool Trump has used to pressure countries into entering trade agreements and, in some cases, signing deals with the United States. In exchange, trading partners have committed to increasing purchases of American goods and increasing their investments in American businesses on top of lowering tariffs on American exports.

But all that could be jeopardized if the Supreme Court sides against Trump.

Read more here.