Trumps tariffs deemed illegal by The Supreme Court

“The IEEPA does not authorize the President to impose tariffs,” the document states. The International Emergency Economic Powers Act (IEEPA) is a US federal law that authorizes the president to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States that originates, in whole or in substantial part, outside the country.

Donald Trump invoked the powers granted under the IEEPA to introduce tariffs on US trade partners, including European nations. However, the President is not permitted to use the IEEPA in this manner without explicit consent from Congress. The Court’s ruling notes that “it is also telling that in IEEPA’s half century of existence, no President has invoked the statute to impose any tariffs—let alone tariffs of this magnitude and scope (…) Presidents have, by contrast, regularly invoked IEEPA for other purposes.”

The ruling represents a major blow to Donald Trump and his international trade policy, particularly since tariffs have become one of its cornerstones. Reuters points out that the Court’s decision could require the return of as much as USD 175 billion in collected tariffs to US partners.