Trump Administration Turns to Supreme Court to Defend Tariffs
Follow-Up
The Trump administration has asked the Supreme Court to urgently consider the legality of the tariffs imposed under a law from 1977, following a federal appeals court’s ruling that deemed most of these measures to exceed presidential authority.
The Department of Justice filed a petition on September 3, requesting the Supreme Court to settle the matter before September 10 and to schedule arguments for November. Solicitor General Dr. John Sauer stated that “the stakes in this case could not be higher,” warning that rescinding these tariffs could expose the United States to “trade retaliation with no effective means of defense” and a “potential economic disaster.”
Tariffs as a Cornerstone of Trump’s Policy
Since returning to the White House in January, Trump has made tariffs a key pillar of his economic and foreign policy, viewing them as a diplomatic tool for pressure and renegotiation of agreements, particularly with China, Canada, and Mexico, sometimes citing the fight against fentanyl and drug trafficking.
The law on which the administration relied, known as the International Emergency Economic Powers Act (IEEPA), allows the president to respond to “unusual and extraordinary threats,” but has historically been used for imposing sanctions or freezing assets, and has never been interpreted as permitting broad tariff imposition.
Series of Judicial Setbacks
The federal appeals court in Washington ruled, by a vote of seven to four, that the law does not grant the president “unlimited authority” to impose tariffs, asserting that such actions contradict the principle of “major issues,” which requires explicit congressional authorization for any substantial economic decision.
Several small importing businesses, along with 12 largely Democratic states, filed suits against these measures, reminding that the constitution grants Congress, not the president, the authority to impose taxes and tariffs. The International Trade Court had previously ruled against these measures last May.
Escalating Institutional Conflict
This dispute reflects the increasing tension between the executive and legislative branches regarding the use of economic emergency powers. It may also intersect with another significant case before the Supreme Court concerning Federal Reserve independence.
The outcome of these battles will determine not only the direction of U.S. trade policy but also the balance of power between the White House and Congress in managing economic affairs.