Trump's Tariff Powers at Center of US Government Balance-Of-Powers Case

Strategic Insights -

A core question regarding the balance of powers in the US government is at the heart of a case heard by the U.S. Court of International Trade, with the outcome potentially pivotal in upholding or rejecting one of President Donald Trump's most contentious tools: tariffs. The case, brought by several business owners, including a New York State wine importer and a Pennsylvania fishing-gear retailer, challenges Trump's authority to impose tariffs under the International Emergency Economic Powers Act. The federal government argues that Trump has wide latitude to determine what constitutes an emergency and that courts should not interfere.

Key Takeaways:

  • The case revolves around the balance of powers question, with the outcome potentially having far-reaching implications for the future of US government.
  • The plaintiffs argue that Trump's tariffs are an "unprecedented and unlawful expansion of executive authority," citing the text of the International Emergency Economic Powers Act (IEEPA), which does not mention tariffs.
  • The government argues that Trump's determination of an emergency is a "political question" and should not be subject to judicial review.
  • The government also cites a historical case (Yoshida International, Inc. vs. Richard Nixon) from 1975, which upheld Nixon's power to impose tariffs under a similar act.
  • The federal government asserts that trade imbalances are a cumulative threat to national security and constitute an emergency situation.
  • The court has questioned the argument that the judiciary has no role in overseeing Trump's tariffs, calling it a "separations-of-power issue."

Statistics:

  • The case concerns tariffs imposed on Canada and Mexico under the International Emergency Economic Powers Act.
  • The trade deficits cited by the Trump administration are long-standing, and the plaintiffs argue that they do not constitute an "unusual and extraordinary threat" as required by IEEPA.
  • The Trump administration imposed 10-per-cent tariffs during the Nixon era, and the government argues that current trade imbalances surpass those of the past.
  • The federal government asserts that the cumulative effects of trade imbalances threaten the national defense industrial base and national security.
  • The Yoshida case, from 1975, found that the Trading With the Enemy Act allowed the President to impose tariffs.

Sources:

  • The Globe and Mail
  • Yoshida International, Inc. vs. Richard Nixon (1975)
  • International Emergency Economic Powers Act (IEEPA)