SCOTUS Snapshot: Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections
The Supreme Court heard oral arguments in two consolidated cases involving several small businesses and 12 states challenging President Trump’s authority to impose tariffs on imported goods.
Legal Basis and Presidential Authority
President Trump invoked the International Emergency Economic Powers Act (IEEPA) to justify the tariffs. He argued that IEEPA empowers the president to respond to extraordinary threats to the United States' national security, foreign policy, or economy, especially those partly originating outside the country.
The Act grants the president the ability, during a national emergency, to regulate the import or export of property in which foreign countries hold an interest.
Impact on Stakeholders
The outcome will impact every American consumer and business, as well as all foreign nations trading with the United States.
Arguments from Both Sides
- Trump administration: The IEEPA's authority to regulate importation includes the power to impose tariffs.
- Challengers: Allowing the president to impose tariffs under IEEPA violates the major questions doctrine, which restricts the president from making significant economic decisions without explicit congressional approval.
The decision will clarify the limits of presidential power in economic and trade policy under the IEEPA framework.
Author's summary: The Supreme Court's ruling will define the extent of presidential authority over tariffs under IEEPA, affecting US economic policy and international trade relations.