Supreme Court Ruling on Trump Tariffs Raises Trade Uncertainties
The court determined on Friday that the International Emergency Economic Powers Act (IEEPA), which served as the legal basis for Trump’s tariffs, did not grant the president the authority to impose such duties. The 6-3 ruling emphasized that Congress holds the exclusive power to levy customs tariffs.
Last year, Trump implemented “reciprocal” tariffs on nearly all US trade partners under the IEEPA and introduced levies on China, Canada, and Mexico, citing concerns over the influx of fentanyl into the United States.
The court noted that the government had interpreted the IEEPA as permitting the president to “unilaterally impose unbounded tariffs and change them at will.” However, in its roughly 50-year history, no president had ever used the act to impose customs duties, let alone tariffs on the scale and scope enacted under Trump.
The ruling clarified that the law’s term “regulating” does not override Congress’s authority to “set tariff policy,” and that the power to “regulate … importation” does not provide a legal basis for imposing such duties.
While the IEEPA grants the president authority to oversee imports in matters like investigation, prevention, and prohibition, the decision highlighted that customs duties or fees are not included among the powers enumerated in the law.
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