Conservative justices on the United States Supreme Court indicated skepticism regarding claims that United States President Donald Trump had the power to unilaterally impose tariffs, an important aspect of his economic agenda. The discussion on the topic is seen as the biggest legal test of his mandate and could limit the scope of executive power in economic matters.
The debate revolves around tariffs created by Trump on imports from countries such as Canada, China and Mexico, as well as “reciprocal” tariffs for other nations, justified by a declaration of national emergency on drug trafficking. The American Constitution determines that Congress is responsible for creating taxes and tariffs, but the current administration argues that tariffs are pillars of economic policy. The ruling comes after lower courts ruled that the International Emergency Economic Powers Act of 1977 (IEEPA) does not grant unlimited power over duties on imports.
Judge Neil Gorsuch warned that Trump’s thesis could transfer essential power from Congress to the Executive, asking whether “the power to reach Americans’ pocketbooks does not belong, from the founding, to Congress.” Chief Justice John Roberts also expressed doubts.
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Lawyers challenging the tariffs are trying to exploit the skepticism of the conservative wing regarding this type of expansion of presidential power. They evoke the principle of non-delegation of powers, according to which Congress cannot transfer its authority to legislate and create tariffs to another body – not even to the president.
A defeat for Trump could force the government to return part of the US$195 billion raised and limit presidential power to adopt economic measures without Congressional approval. Trump helped shape the Supreme Court’s conservative majority as he appointed three of the nine justices. The Supreme Court’s decision is expected in the coming weeks or months.