Many posts have dealt with tariffs and trade.
The Federal Circuit, Court of International Trade, and District Court for the District of Columbia all reached the same correct conclusion: the President’s imposition of tariffs under IEEPA is unlawful.
Only Congress has the power to “lay and collect Taxes, Duties, Imposts and Excises,” U.S. Const. Art. I, § 8, cl. 1 and to “regulate Commerce with foreign Nations,” id., cl. 3. This reflects the Framers’ intent for the most democratically accountable branch—the one closest to the People—to be responsible for enacting taxes, duties, and tariffs. Hamilton, Federalist Nos. 31–36, The Same Subject Continued: Concerning the General Power of Taxation (Jan. 1788)
Congress enacted IEEPA, 50 U.S.C. §§ 1701–1710, to provide the President with the power to impose sanctions, export controls, and similar measures. It provides the President with defined powers to address national emergencies but does not confer the power to impose or remove tariffs.Neither the word “duties” nor the word “tariffs” appears anywhere in IEEPA. Rather, IEEPA allows the President, in times of a declared emergency, to “regulate … importation or exportation” of property. 50 U.S.C. § 1702(a)(1)(B). IEEPA’s delegated power to “regulate” is not a power to impose tariffs.IEEPA contains none of the hallmarks of legislation delegating tariff power to the executive, such as limitations tied to specific products or countries, caps on the amount of tariff increases, procedural safeguards, public input, collaboration with Congress, or time limitations. In the five decades since IEEPA’s enactment, no President from either party, until now, has ever invoked IEEPA to impose tariffs.The Administration’s interpretation of IEEPA would effectively nullify the guardrails set forth in every statute in which Congress expressly granted the President limited tariff authority—a result Congress did not intend.Contrary to the views expressed by the Administration and the Federal Circuit dissent, IEEPA does not authorize the President to impose tariffs as “bargaining chips.” While this Court has held that Presidents may use IEEPA to freeze foreign assets and to then use those frozen assets as leverage in foreign affairs negotiations, Dames & Moore v. Regan, 453 U.S. 654, 673 (1981), IEEPA does not grant the President the power to impose tariffs on American citizens importing goods to generate leverage in trade talks. Nor may the President use IEEPA to override America’s trade statutes, which Congress has carefully considered and enacted over the years. The President “is not free from the ordinary controls and checks of Congress merely because foreign affairs are at issue.” Zivotofsky ex rel. Zivotofsky v. Kerry, 576 U.S. 1, 21 (2015)This Court should hold that IEEPA does not delegate tariff authority to the President and the President’s tariffs under IEEPA are therefore unlawful.
