Earlier this year, President Trump became the first US President to declare tariffs on imports under a 1977 law called the International Economic Emergency Powers Act (IEEPA). While not the only tariff authority the President has relied on, a New York Times analysis estimates that IEEPA tariffs affect just under 30% of all imports, and consulting firm PwC estimates the government collected approximately $108 billion in duties through the end of October.
These IEEPA tariffs have been the subject of controversy and are the subject of ongoing litigation, culminating in oral arguments in the Supreme Court on November 5. Here, Mailers Hub discuss where things stand with these “emergency” tariffs and where they might be headed.
IEEPA
Under the Constitution, Congress has the power to impose taxes and tariffs, but may grant tariff authority to the President through legislation. While a number of statutes expressly grant this authority, IEEPA does not. Rather, it provides the President with the authority “to deal with an unusual and extraordinary threat … to national security, foreign policy, or economy of the United States by “regulating” foreign commerce.
Even so, President Trump relied on IEEPA to announce tariffs on foreign goods in two buckets: (1) tariffs directed to specific “emergencies” as defined by the President; and (2) so-called “reciprocal tariffs” aimed at trade imbalances with dozens of nations. Because the statutory text of IEEPA does not expressly authorize tariffs, it also does not limit the size or duration of such tariffs, making it a remarkably powerful presidential tool.