In an unambiguous and unanimous ruling, the U.S. Court of International Trade held that President Trump’s “reciprocal tariffs� and fentanyl tariff actions exceeded his constitutional and statutory authority. We believe the ruling will stand up under Supreme Court review. While chronic trade imbalances remain, the administration now must deploy other trade strategies and authorities to address global overreliance on the U.S. to support the longstanding economic order. Congress can help by reclaiming its Constitutional authority to direct trade.
The trade court’s ruling states that the International Economic Emergency Powers Act, or IEEPA, can’t authorize sweeping tariffs without violating what is known as the nondelegation doctrine. A three-judge panel ruled that IEEPA doesn’t grant unlimited, unreviewable authority for the president to declare national emergencies unilaterally or impose tariffs arbitrarily. The ruling cited foundational Supreme Court cases such as Youngstown Sheet&Tube v. Sawyer, as well as more recent decisions such as Loper Bright Enterprises v. Raimondo, on improper delegation of authority from Congress to the executive branch. The court also invoked the “major questions doctrine� of the Roberts court as part of the argument against Mr. Trump’s claim of broad trade authority.