Washington — A Divided Supreme Court on Tariffs
The Supreme Court heard arguments Wednesday regarding President Trump’s authority to impose unilateral tariffs on nearly every country under the International Emergency Economic Powers Act (IEEPA), a key component of his economic agenda. The justices appeared skeptical of the breadth of power Mr. Trump is asserting without clear authorization from Congress.
Key Points:
- Disagreement Over Tariffs: Several justices, including Neil Gorsuch and John Roberts, questioned the administration’s assertion that IEEPA grants the president broad emergency authority over foreign affairs, raising concerns about Congress potentially abdicating its power to regulate trade.
- IEEPA and “Regulate Importation”: The act does not mention the word “tariff,” leading some justices to question whether it authorizes such levies. Justice Amy Coney Barrett specifically asked the Solicitor General to identify other provisions in U.S. code using “regulate” to confer tariff authority.
- Lower Court Decisions: Three lower courts have concluded that most of Trump’s tariffs are illegal, a ruling that would deal a blow to his plans if upheld by the Supreme Court.
- Presidential Power vs. Congressional Authority: The case tests the limits of presidential power, with the Trump administration arguing for broad executive authority over national security and foreign affairs, while businesses warn of significant economic consequences.
- Implications for Presidential Authority: This dispute is part of a broader pattern of the Trump administration testing the boundaries of presidential authority, including on issues like student loan debt and eviction moratoriums.
Quotes:
- Neal Katyal (representing businesses): “Tariffs are taxes” and the Constitution vests that power in Congress.
- Scot Bessent (Treasury Secretary): “To the President, these cases present a stark choice: With tariffs, we are a rich nation; without tariffs, we are a poor nation.”
- Justice Gorsuch: Expressed concerns about a “one-way ratchet” if Congress were to delegate tariffing power to the president.
Background:
The Supreme Court agreed in September to hear these cases, which involve significant economic and political implications. The decision could have far-reaching consequences for both presidential power and international trade relations.