The Supreme Court docket Strikes Trump’s Tariffs

President Donald Trump’s sweeping tariff platform, enacted under the International Emergency Economic Powers Act (IEEPA), has been ended by the Supreme Court.

The Supreme Court’s opinion, written by Chief Justice John Roberts, was released this morning. It holds that the IEEPA does not authorize the President to impose tariffs. He was joined by Justices Gorsuch, Barrett, Kagan, Sotomayor, and Jackson. Justices Thomas, Alito, and Kavanaugh dissented.

A brief word on the statute in question is necessary. The IEEPA gives the president, upon an emergency declaration, by means of “instructions, licenses, or otherwise”, to:

“investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent or prohibit, any acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation or exportation of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest”.

As you can see, the IEEPA doesn’t mention “tariffs.” But it does give the president the authority to “regulation importation” – a phrase that is arguably broad enough to cover tariffs. From the outset of the case that was an exceptionally broad and significant power, making this a difficult win for the Trump Administration. Article I, Section 8 of the Constitution provides that Congress has the power to issue tariffs, taxes, and duties (the Administration would previously concede it had no inherent authority to impose tariffs during peacetime.). This economic power can touch upon the life of every American and can be ruinous if abused. Those are the pragmatic concerns that were in the Court’s mind while it considered the statutory interpretation of the IEEPA.