Ohio State analysis details high-stakes tariff case impacting Ohio farmers

COLUMBUS, Ohio - A high-stakes Supreme Court case about presidential tariff authority could dramatically influence U.S. trade policy, with immediate repercussions for Ohio farmers - especially soybean producers already facing tight margins during harvest.

In a recent legal and economic analysis, Is There a Legal Basis for 'Liberation Day' Tariffs?, Ian Sheldon, professor and holder of The Andersons Endowed Chair in Agricultural Marketing, Trade and Policy at The Ohio State University College of Food, Agricultural, and Environmental Sciences (CFAES), examines the constitutional challenges surrounding the tariffs and their broader implications for trade and domestic agriculture.

"The Court of International Trade ruled that imposition of the tariffs exceeded the authority delegated to the president by the International Emergency Economic Powers Act (IEEPA)," Sheldon said. "That decision was affirmed on Aug. 29 by the U.S. Court of Appeals for the Federal Circuit. The court emphasized that IEEPA has traditionally been used for financial sanctions, not for setting tariffs."

The outcome of this case could have wide-ranging effects on U.S. trade policy, especially for Ohio's soybean industry, which ranks sixth nationally, with nearly 5 million acres harvested and over 250 million bushels produced annually. Soybeans also constitute a major export crop, and disruptions - particularly with key buyers like China - pose serious financial risks.

"If the court finds the tariffs unlawful, questions will arise about whether tariff revenues will need to be returned and what trade tools the administration might turn to next," Sheldon said.

This issue will be a major topic at the 2025 Agricultural Outlook and Policy Conference on Nov. 18 at the Nationwide & Ohio Farm Bureau 4-H Center on Ohio State's Columbus campus. Hosted annually by the CFAES Department of Agricultural, Environmental, and Development Economics (AEDE), the conference provides producers, agribusinesses and policymakers with critical insights for the year ahead.

Sheldon will participate in a session discussing the implications of trade policy shifts for farmers, policymakers and industry stakeholders, while other AEDE faculty will discuss energy, labor, food and farm margins.

Registration is free and open to the public.

"Whether it's soybeans in Ohio or trade disputes in Washington, D.C., these issues are deeply connected," Sheldon said. "This case is about more than tariffs. It's about the future of trade governance and the livelihood of American farmers."

Tariffs remain in place temporarily, but the case is scheduled for review by the U.S. Supreme Court on Nov. 5. Regardless of the outcome, Sheldon expects trade policy uncertainty to remain.

"China is not currently purchasing U.S. soybeans," Sheldon said. "They're using imports as a bargaining chip and want to see a significant reduction in U.S. tariffs before they re-enter the market. That's putting downward pressure on prices and squeezing farm margins."

Looking ahead, Sheldon emphasizes that even if the tariffs are overturned, U.S. trade policy is unlikely to revert fully to the pre-2025 environment.

"The U.S. is shifting away from post-war trade norms, and we will likely see more aggressive use of trade laws, which will keep global agricultural markets uncertain," he said.

That includes not just China, but also Canada and Mexico - the top two markets for U.S. agricultural exports. The United States-Mexico-Canada Agreement (USMCA) is up for review in 2026.

"Trade relationships with China, Taiwan and other markets in Asia, along with our North American partners will be critical," Sheldon said.