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The recent court ruling invalidating Donald Trump’s “liberation day” duties has limited his legal options to impose sweeping global tariffs, experts say. The US Court of International Trade determined that Trump misused emergency economic powers legislation when declaring blanket tariffs last month to reduce trade deficits with countries worldwide.
Legal experts point out that the International Emergency Economic Powers Act (IEEPA) was not intended to address balance of payments issues, leaving Trump with few alternatives. Professor Lorand Bartels of Cambridge University explained that the court’s ruling highlighted the limitations of the IEEPA and suggested that Trump may need to explore other legal avenues.
The court specifically referenced section 122 of the Trade Act of 1974 as a potential alternative for addressing balance of trade issues. However, this section provides limited powers, allowing the president to impose tariffs of up to 15 percent for only 150 days before seeking further authorization from Congress.
While the ruling did not affect section 232 tariffs on steel, aluminum, and autos, Trump may need to consider other options. One possibility is section 338 of the Tariff Act of 1930, which allows the president to impose tariffs if US businesses face unfair discrimination from foreign powers. These tariffs are capped at 50 percent, a figure Trump briefly considered imposing on the EU.
Another option is to utilize section 301 of the Trade Act of 1974, which allows the US Trade Representative to impose tariffs on countries that violate trade agreements in discriminatory ways. This was previously used against China for intellectual property violations.
Following the court’s decision, there have been calls for Trump to seek congressional approval for his tariffs. Charles Benoit from the Coalition for a Prosperous America emphasized the importance of ensuring the tariffs are legally sound, especially considering the significant revenue they could generate over the next decade.
In conclusion, Trump’s options for imposing tariffs have been restricted by the recent court ruling, prompting a reevaluation of legal strategies. Moving forward, it will be essential for Trump to explore alternative legal avenues and seek congressional support to ensure the legality and effectiveness of his trade policies. Subscribe to the White House Watch Newsletter for more updates on Trump’s second term and its implications for Washington, business, and the world.
