J.D. Tuccille: Trump's trade war on America's own consumers merely weakened |
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J.D. Tuccille: Trump's trade war on America's own consumers merely weakened
The average effective tariff rate will still be 9.1%, though that's down from 16.9%
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U.S. President Donald Trump’s trade war against American consumers (and Canada and the rest of the world) isn’t over, but it just suffered a major setback. In a 6-3 decision, the U.S. Supreme Court ruled that the law on which the president relied to unilaterally impose high tariffs without seeking congressional approval awards him no such authority. With two of the three justices Trump appointed to the high court joining the decision, it’s a decisive blow against the Trump administration’s neo-mercantilist trade policies and also against the growth of executive power, which has been stretched beyond constitutional bounds by presidents from both major political parties.
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For the majority in the case of Learning Resources Inc. v Trump, brought by small toy manufacturers that claimed harm from the administration’s tariff policies, Chief Justice John Roberts wrote, “the Government reads IEEPA (International Emergency Economic Powers Act) to give the President power to unilaterally impose unbounded tariffs. On this reading, moreover, the President is unconstrained by the significant procedural limitations in other tariff statutes and free to issue a dizzying array of modifications at will. All it takes to unlock that extraordinary power is a Presidential declaration of emergency, which the Government asserts is unreviewable.“
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