The Supreme Court’s tariff case is an underpriced macro tail risk. A loss could trigger refunds, disrupt trade policy, and force a rapid White House pivot.

The Supreme Court’s challenge to the administration’s IEEPA tariffs is one of the most underpriced macro risks in markets right now. With prediction markets assigning barely a 25% chance of a pro-administration ruling, traders and policymakers are ignoring the possibility that billions in duties could be invalidated—or even refunded. This piece breaks down the legal stakes, the economic shock potential, the emergency fallback tools the White House could activate, and why this ruling could reshape pricing, Treasury issuance, and corporate planning over the next 1–2 quarters.