The Supreme Court of the United States invalidated import tariffs unilaterally imposed by President Donald Trump under the International Emergency Economic Powers Act—a statute which did not delegate Congress’ exclusive power to impose tariffs to the President (Learning Resources, Inc v Trump)
International Trade analysis: In a landmark decision some have called the most important decision of this century, the US Supreme Court ruled, by a 6–3 majority, that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs. The court held that the Constitution vests the exclusive power to levy taxes in Congress, and that IEEPA’s grant of authority to ‘regulate’ does not encompass the imposition of tariffs. Invoking the Major Questions Doctrine, the court emphasised that the exercise of such sweeping and unprecedented economic authority requires clear and explicit congressional authorisation–not an implied delegation under IEEPA. Accordingly, the decision invalidates two types of tariffs imposed under IEEPA: drug trafficking tariffs on imports from China, Mexico, and Canada; and reciprocal tariffs ‘on all imports from all trading partners’. (Executive Order No 14257, 90 Fed. Reg. 15045) The court’s holding has thus triggered refunds for affected businesses. The court assigned responsibility for overseeing the refund process to the Court of International Trade, with implementation to be carried out by US Customs and Border Protection (CBP). Importers and businesses across the United States have filed and continue to file claims seeking full reimbursement. Written by Charles H. Camp, president; Josephine Gray, law clerk; and Sarah Nersesov, law clerk, Law Offices of Charles H. Camp, PC, Washington, DC.