The #Constitution gives #Congress the #power to levy #tariffs. But the #Trump administration argued that a 1977 #law allowing the president to regulate importation during “emergencies” also allows him to set tariffs. Other presidents have used the law dozens of times to impose #sanctions, but Trump was the first president to invoke it for #import #taxes.
#law #economy #inflation #affordability #CostOfLiving #geopolitics #SCOTUS
The #Constitution gives #Congress the #power to levy #tariffs. But the #Trump administration argued that a 1977 #law allowing the president to regulate importation during “emergencies” also allows him to set tariffs. Other presidents have used the law dozens of times to impose #sanctions, but Trump was the first president to invoke it for #import #taxes.
#law #economy #inflation #affordability #CostOfLiving #geopolitics #SCOTUS
#Trump set what he called “reciprocal” #tariffs on most countries in April 2025 to address #trade #deficits that he declared a “national emergency”. Those came after he imposed extra #duties on #Canada, #China & #Mexico, ostensibly to address a “drug trafficking” “emergency”.
A series of lawsuits followed, including a case from a dozen largely Democratic-leaning #states & others from small #businesses selling everything from plumbing supplies to educational toys to women’s cycling apparel.
The challengers argued the “emergency powers” #law doesn’t even mention #tariffs & Trump’s use of it fails several legal tests, including one that doomed President Joe Biden’s $500 billion student loan forgiveness program.
The economic impact of Trump’s tariffs has been estimated at some $3 trillion over the next decade, acc/to the #CBO.
#law #economy #inflation #affordability #CostOfLiving #geopolitics #Trump #SCOTUS
#Treasury has collected >$133 billion from the #import #taxes #Trump imposed under the emergency powers law, federal data from December says. Many companies, including the big-box warehouse chain Costco, have already lined up in court to demand #refunds.
#law #economy #tariffs #inflation #affordability #CostOfLiving #geopolitics #SCOTUS
#SCOTUS’ decision was 6-3.
Justices #ClarenceThomas, Samuel #Alito & Brett #Kavanaugh dissented.
Writing for the majority, Chief Justice #JohnRoberts said the #statute does not authorize the president to impose #tariffs.
“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, & scope. In light of the breadth, history, & constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”
