Supreme Court to Hear Challenge to Trump-Era Tariffs,Potentially impacting Trillions
WASHINGTON (AP) - The Supreme Court agreed today to hear a challenge to the legality of tariffs imposed by former President Donald Trump,a case that could have meaningful economic repercussions and reshape the balance of power between the executive branch and Congress. The court’s decision sets the stage for arguments over whether Trump exceeded his authority when levying tariffs on billions of dollars worth of goods, potentially impacting an estimated $3 trillion in revenue over the next decade.
The case centers on tariffs enacted under the International Emergency Economic Powers Act (IEEPA), a 1977 law allowing presidents to regulate international commerce during national emergencies. Challengers argue these tariffs represent an overreach of executive power, contending that such sweeping economic measures require explicit congressional authorization, a principle known as the major questions doctrine. This doctrine was recently invoked by the Supreme Court to strike down President Joe Biden’s student loan forgiveness plan, which relied on a different emergency law.
The Biden administration defends the tariffs as a legitimate exercise of presidential authority in the realm of foreign affairs, an area where courts traditionally defer to the executive branch.However, challengers are also raising concerns about the nondelegation doctrine, arguing Trump’s broad interpretation of IEEPA could allow any executive agency to impose taxes without clear congressional approval.
As of September, the tariffs had generated $195 billion in revenue. A ruling against Trump could necessitate refunds of those collected funds. While Trump could potentially reimpose tariffs under alternative laws, those options woudl likely be subject to greater limitations. four appeals court judges previously sided with the Trump administration, upholding the president’s authority under IEEPA. The Supreme Court’s decision is expected to clarify the scope of presidential power regarding trade and economic policy.
