US President Donald Trump has declared a national emergency under the International Emergency Economic Powers Act (IEEPA) to impose 25% tariffs on Canadian and Mexican imports and an extra 10% duty on Chinese goods. This move is seen as a significant expansion of trade law boundaries and may face swift court challenges that could set important precedents.
The 1977 IEEPA statute has primarily been used for sanctions, not tariffs, making this action untested. Courts have historically upheld the president’s power to take emergency actions, especially those related to national security. However, experts argue that the law’s use for tariffs may be questionable.
Some critics view Trump’s action as a “magic Sharpie” approach, allowing him to impose tariffs without congressional oversight or public consultations. This could upset the balance Congress has sought to strike in delegating tariff authority to the president.
The late President Richard Nixon used IEEPA’s predecessor law to impose a 10% across-the-board US tariff in 1971. Courts upheld his action, but some experts argue that Trump’s move may not fit the emergency criteria outlined in the statute. A causal connection between the emergency and the remedy is essential, which is uncertain in this case.
As a result of this action, companies or industry groups may seek an injunction to block the tariffs. If courts allow the use of IEEPA for tariffs to stand, Congress should consider reforming the law to require greater oversight.
Source: https://www.reuters.com/business/trump-stretches-trade-law-boundaries-with-canada-mexico-china-tariffs-2025-02-02