Trump’s Tariff Power Grab

Today, the Supreme Court is hearing arguments in the landmark case of Learning Resources, Inc. v. Trump, which will determine whether President Trump can use an emergency declaration to unilaterally impose tariffs on foreign goods that Americans buy, as he did earlier this year.

Although the Constitution is pretty clear that only Congress has the power to tax, the Trump administration cited a 1977 law called the International Emergency Economic Powers Act to justify the suite of tariffs it rolled out on April 2—what Trump called “Liberation Day.”

According to the president and his lawyers, the fact that the country has a trade deficit—that American consumers spend more on goods and services from foreign producers than American businesses make from sales to foreign consumers—is a national emergency.

Trump considered attending the hearing himself over the weekend. He eventually decided against it, but stressed to his followers on Truth Social that he views this case as “one of the most important in the history of the country.”

The president clearly wants his allies on the Supreme Court to understand that he would take a ruling against him very personally. And, based on their previous rulings, the Court’s Trump-friendly majority probably wants to again give a green light to Trump’s expansion of executive authority.

But that could prove difficult. To strike down several of Biden’s more blatant power grabs, this Court relied on the so-called “major questions doctrine,” which requires Congress to use plain and direct language to authorize sweeping economic actions by the executive branch. All that the 1977 law Trump is using to justify his tariffs authorizes him to impose are “regulations” on imports.

It would be transparently hypocritical for these justices to agree that “tariffs,” “taxes,” or “duties” can be implied by the word “regulations” when they just refused to grant that level of leniency to the previous administration.

Which isn’t to say it won’t happen. The idea that the Supreme Court, and the entire federal judiciary, are independent, non-political entities driven solely by a commitment to the letter of the law is, after all, a myth.

But it’s still a difficult position for Trump’s allies on the Court. And further, it’s more evidence that Trump has abandoned his promise to rein in the power of the federal bureaucracy.

As Ryan McMaken pointed out back in April, Trump claiming unilateral control over the power to levy taxes is not at all unprecedented. That’s the direction the federal government has been moving for well over a century, as more and more of Congress’s core powers get transferred to the White House and the executive agencies making up the administrative state.

Further, the executive branch using “emergencies” it declares to justify its own power grabs has been one of the primary ways the executive state has grown in general.

In recent years, crises like the 9/11 attacks, the collapse of the housing bubble, and the covid pandemic have been used to give the permanent federal bureaucracy significantly more control over our lives.

But there have been some bright spots on this front. One of them was the Supreme Court’s embrace of the major questions doctrine, which restricted the administrative state’s ability to interpret vague language in legislation in whichever way granted itself the most power. On top of that, last year, the Court overturned the so-called Chevron doctrine.

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Author: HP McLovincraft

Seeker of rabbit holes. Pessimist. Libertine. Contrarian. Your huckleberry. Possibly true tales of sanity-blasting horror also known as abject reality. Prepare yourself. Veteran of a thousand psychic wars. I have seen the fnords. Deplatformed on Tumblr and Twitter.

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