Supreme Court curtails runaway presidential tariff powers: CEI comment
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The Supreme Court today ruled today in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. It was a 6-3 decision led by Chief Justice John Roberts, with Justices Thomas, Alito, and Kavanaugh dissenting.
Ryan Young, CEI senior economist and trade policy expert praised the ruling:
“Today’s tariff decision is a great way to start America’s 250th anniversary. On the surface, the decision is about tariffs. But it is also about a deeper question: Are there limits to presidential power? Thank goodness the Court said yes.
“The separation of powers is a fundamental American idea. The Court has now given it some needed life. We should never put too much power in one place, or in one person. That’s what the American Revolution was all about.
“The price increases and economic uncertainty from President Trump’s tariffs are bad enough. Their real harm is to the separation of powers. The Constitution gives all taxing power to Congress, and none to the president.
“What’s next? The administration will now turn to other old statutes to resume its Congress-free tariff-making. It has already been laying the groundwork to do so. That means many of the struck-down IEEPA tariffs will return over the next several months, if not in their current form.
“It is harder to tell what will come of tariff refunds and trade agreements the administration negotiated using the Liberation Day tariffs.
“The fact that the other branches are finally standing up for themselves is good news for the country’s political health. Now it is Congress’s turn.”
Iain Murray, CEI senior fellow:
“The Court has affirmed that a tariff is a tax. America was founded on the principle of ‘no taxation without representation.’ The people’s representatives in the Congress are the ones who determine tariff policy, not the president. This is a welcome shift back to proper constitutional government and is especially to be welcomed in America’s 250th birthday.”
Kent Lassman, CEI president:
“If everything is labeled an emergency, then nothing is an emergency. Today’s decision demonstrates that separation of power is the foundational safeguard for liberty. The world watches as commonsense is injected into trade policy and limits on unilateralism hold under great political pressure. The former is an immediate benefit and the latter is our constitutional inheritance.”
Related analysis: Supreme Court reaffirms that tariff power belongs to Congress, not the president