The widespread tariffs Donald Trump imposed by declaring a “national emergency” over trade have been struck down by a U.S. appeals court. The ruling finds that this was an improper use of the International Emergency Economic Powers Act (IEEPA), a law with a very different purpose.
The court reasoned that the IEEPA was designed to give the president leverage against hostile actors, for example, by freezing their assets. It was not intended to be a tool for overhauling U.S. trade policy with the entire world based on economic metrics like the trade deficit, a power the Constitution assigns to Congress.
This decision destabilizes the current global trade environment. Numerous informal agreements were put in place by the Trump administration as “off-ramps” for countries willing to make concessions to avoid the tariffs. The legal basis for that entire framework has now been nullified.
The case is now on a fast track to the Supreme Court. A final ruling will have lasting implications for the balance of power in Washington, potentially creating a new precedent for when and how a president can use emergency powers to achieve policy goals without legislative approval.
