Trump’s tariffs struck down by Supreme Court

SCOTUS Blog reports:

In a major ruling on presidential power, the Supreme Court on Friday struck down the sweeping tariffs that President Donald Trump imposed in a series of executive orders. By a vote of 6-3, the justices ruled that the tariffs exceed the powers given to the president by Congress under a 1977 law providing him the authority to regulate commerce during national emergencies created by foreign threats. …

In a part of the opinion joined by Justice Neil Gorsuch and Justice Amy Coney Barrett, Roberts said that Trump’s reliance on IEEPA to impose the tariffs violated the “major questions” doctrine – the idea that if Congress wants to delegate the power to make decisions of vast economic or political significance, it must do so clearly. In 2023, the court relied on the “major questions” doctrine to strike down the Biden administration’s student-loan forgiveness program. In that case and others like it, Roberts observed, it might have been possible to read the federal law at issue to give the executive branch the power it claimed. But “context” – such as the constitutional division of power among the three branches of government – and “common sense” “suggested Congress would not have delegated ‘highly consequential power’ through ambiguous language.”

The majority are quite correct. If the President wants the ability to impose tariffs at will, he should get Congress to pass such a law authorising him to do do.

This is temporarily good news for New Zealand as the 10% tariff on our exports is gone for now. However it is highly highly likely Trump will reinstate most or all tariffs under another justification, and that will take a year or so to be decided.

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