Thanks to the staggering incompetence (and/or deliberate provocation for domestic political advantage) of the Carney government’s dealings with President Donald Trump, the current case before the Supreme Court is of significant interest to those of us on the north side of the US-Canadian border. On his Substack, David Friedman discusses the issues before the court:
There are three things wrong with Trump’s tariffs. The first is that they cannot be expected to provide the benefits claimed, can be expected to make both the US and its trading partners poorer; the arguments offered for them depend on not understanding the economics of trade. For an explanation of why that is true, see an earlier post.
The fact that the tariffs make us poorer may be the most important thing wrong with them but it is irrelevant to the Supreme Court; nothing in the Constitution requires the president to do his job well. The questions relevant to the Court are whether what Trump is doing was authorized by past Congressional legislation and whether it was constitutional for Congress to authorize it.
What Counts As An Emergency?
Tariffs are under the authority of Congress, not the president.1 Trump’s justification for setting them himself is congressional legislation, the International Emergency Economic Powers Act.
(a) Any authority granted to the President by section 1702 of this title may be exercised to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States, if the President declares a national emergency with respect to such threat.
(b) The authorities granted to the President by section 1702 of this title may only be exercised to deal with an unusual and extraordinary threat with respect to which a national emergency has been declared for purposes of this chapter and may not be exercised for any other purpose. (IEEPA, 50 U.S. Code § 1701, emphasis mine)
Trump declared that his Worldwide Reciprocal Tariffs were intended to deal with the US trade deficit.2 Whether the deficit is a threat and whether tariffs are a good way to deal with it are questions for economists3 but whether it is unusual is relevant to judges, since if it is not the IEEPA does not apply.
[…]
The Court on Trial
Delegating to the president the power to impose tariffs, a power explicitly given to Congress in the Constitution, is a major question. Under doctrine proclaimed by this court that means that the legislation claimed to delegate that power must be read narrowly. On a narrow reading, on anything but a very broad reading, the legislation fails to apply to President Trump’s tariffs for two independent reasons:
It only grants power in an emergency, which under the language of the Act neither the trade deficit nor the illegal drug problem is; the deficit has existed since 1970, the War on Drugs was proclaimed in 1971.
The powers granted to the president in the Act do not include the power to impose tariffs.
If the six conservative justices believe in the principles they claim, the administration will lose the case 9-0.
- The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises … To regulate Commerce with foreign Nations … (U.S Constitution, Article I, Section 8).
- “I found that conditions reflected in large and persistent annual U.S. goods trade deficits constitute an unusual and extraordinary threat to the national security and economy of the United States that has its source in whole or substantial part outside the United States. I declared a national emergency with respect to that threat, and to deal with that threat, I imposed additional ad valorem duties that I deemed necessary and appropriate.” (Executive Order July 31, 2025).
- The answers are no and no.
