Stories from the Frontlines of Tariff Battles

Supreme Court Decision Impacts Tariff Policy

In February, the Supreme Court determined that tariffs imposed under the International Emergency Economic Powers Act of 1977 (IEEPA) were not legally valid. Prior to this decision, the Trump Administration had relied heavily on IEEPA to justify a wide range of tariffs, including those targeting Mexico, Canada, and China for fentanyl-related concerns, as well as country-specific 'reciprocal' tariffs, a 10% global base tariff, and 'geopolitical' tariffs directed at Brazil and India.

The Administration favored using IEEPA because it allowed for swift tariff implementation without the need for formal investigations or approval from Congress, making it a convenient tool for addressing various situations.