TPA Supports Supreme Court Ruling on President Trump’s Tariffs

FOR IMMEDIATE RELEASE

Contact: Kara Zupkus (224) 456-0257

WASHINGTON, D.C. — Today, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not delegate to the presidency the power to impose tariffs, invalidating much of President Donald Trump’s trade policy. The Court found that the statutory language of that law does not provide a clear indication, as the administration claimed, that Congress intended to give essentially unbounded authority over tariff policy to the executive.

In response to today’s ruling, David B. McGarry, Research Director at the Taxpayers Protection Alliance (TPA), offered the following comment:

“Consumers can breathe a temporary sigh of relief with the Supreme Court’s decision. The White House’s tariff policy amounted to an attempt to discover never-before-seen powers to remake the international trade order on the basis of a few words in a decades-old statute. Just as the Supreme Court refused to stand by when Joe Biden attempted to lay claim to essentially legislative powers, it would not stand by as the Trump administration attempted a similar project. Under the Constitution, the power to set the tariff rate is vested in Congress, and nothing in the statute relied upon by President Trump transferred those powers to the White House. Today, the American system of checks and balances was vindicated. All Americans should be pleased not only because tariffs raise prices for domestic businesses and consumers, but because the rule of law held firm.

“Although it was a question of legal validity (and not of economic wisdom) that was before the Court, American businesses and consumers should take heart that many tariffs, now ruled illegal, have been removed. The first year of Trump’s protectionism has raised the price of tariffed goods, and the bulk of this price has been paid by Americans. Every time the administration touted the revenue it had raised from tariffs, it touted a tax hike on American citizens. 

“It’s unfortunate that President Trump doubled down on more tariffs during a press conference after the decision was announced. It’s time to abandon the idea of tariffs and work to rebuild the economy through tax relief and sound economic policy.

“Ultimately, the rule of law triumphed at the Supreme Court, as it should. TPA applauds the court for its legally sound decision.”

###

The Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis, and dissemination of information on the government’s impact on the economy.