President Donald Trump has stirred up significant controversy with his recent announcement of new tariffs. These tariffs have caught many trade law experts off guard, as presidents typically do not have the power to impose such broad tariffs without a lengthy process. However, Trump’s advisors are backing a novel legal argument. They claim that if there’s a national emergency, the president can set tariffs at will.
To support this claim, Trump has declared national emergencies related to illegal immigration, the fentanyl crisis, and the trade deficit. This interpretation of the International Emergency Economic Powers Act from 1977 is unprecedented. No president has previously attempted to use this law in such a sweeping manner.
The legality of Trump’s tariffs is now under scrutiny in the courts. Several lawsuits have been filed against these tariffs, arguing they are unlawful and possibly violate the Constitution. Some judges have already expressed concerns about the legality of this approach.
This situation raises important questions about presidential power regarding tariffs. What authority does the president have? Where does this power come from, and what are its limits? The fate of Trump’s tariffs and the legal theory behind them remains uncertain as the courts take on these challenges.
For those interested in the implications of these tariffs, there are several related discussions out there. Topics include the impact of high tariffs on trade and the significance of trade deficits.
This episode of Planet Money, hosted by Willa Rubin and Jeff Guo, explores these issues in depth. It was produced by Sam Yellowhorse Kesler and edited by Jess Jiang, with fact-checking by Sierra Juarez. The show is available on various platforms, including Apple Podcasts and Spotify, for those wanting to stay informed about the latest developments in economic policy.