U.S. Supreme Court Finds Trump Tariff Regime Unlawful

The U.S. Supreme Court has found that President Trump does not have the power to unilaterally impose tariffs on imported goods as he wishes.

The dispute centred around Trump’s interpretation of a 1977 law, the ‘International Emergency Economic Powers Act‘. The act was designed to allow US Presidents to take actions during declared national emergencies that would otherwise be the preserve of the United States Congress. Trump has declared multiple national emergencies since retaking office many of which appear to be frivolous. His critics argue he has done so in order to use powers that were designed to be used in genuine emergencies to respond events faster than the legislative process could in order to circumvent the legislative process entirely.

With their ruling, the US Supreme Court agrees.

Crucially, three of the court’s dominant conservative wing joined the majority in confirming President Trump’s use of tariffs has been unlawful, two of whom (Gorsuch and Coney) were nominated by Trump himself, demonstrating that concern over Trump’s broad interpretation of what he could and could not with executive power crossed ideological lines.

The consequences of this ruling are sure to be immense. Trump has used the powers he arrogated to himself to impose tariffs on other countries on a whim, in response to slights both real and imagined and to leverage the might of the US to secure trade deals he believed were advantageous. Not only are some of those deals now up in the air (the impact on the still to be ratified trade deal with the EU remains to be seen), but the companies that paid the tariffs that have now been deemed to be unlawful may seek refunds from the US government (though in anticipation of the ruling going against them, that process may have been made as complicated as possible).

President Trump has not responded to today’s ruling as of yet, but his reaction to being disarmed of his favourite geopolitical tool is unlikely to be positive. He can still impose tariffs, but the process to do so is much more time-intensive and complicated than simply announcing them as has been his preference over the past year. Nor does this represent a return to the status quo ante. But it does mean his powers in this sphere have been restrained.

Slugger Team

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