In a long-awaited decision, today the Supreme Court ruled that President Trump was not authorized under the International Emergency Economic Powers Act of 1977 (IEEPA) to impose broad tariffs on imports. In the 6-3 decision written by Chief Justice John G. Roberts Jr. the majority agreed that the sweeping tariffs the Trump Administration unilaterally imposed on most of the United States’ trading partners were illegal. “The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope,” Roberts wrote. “In light of the breadth, history, and constitutional context of that authority, he must identify clear congressional authorization to exercise it.” IEEPA, according to the Court, “falls short.” What the Court did not say, however, was what should happen to the over $130 billion in tariffs that has already been collected.
While much remains to be seen, it is widely anticipated that the Administration will look to other statutory or trade law authority to continue its tariff regime.
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