Supreme Court limits use of emergency powers, but existing statutes leave several options intact.
By yourNEWS Media Newsroom
Despite a Supreme Court ruling that invalidated President Donald Trump’s broad use of emergency powers to impose sweeping tariffs, multiple statutory authorities remain available for future trade actions.
In Learning Resources v. Trump, the Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs under a declared national emergency. The majority concluded that tariffs constitute a form of taxation reserved primarily to Congress and that IEEPA does not clearly delegate that authority.
However, Justice Brett Kavanaugh, in dissent, wrote that the ruling does not eliminate presidential tariff authority more broadly. He stated that “the Court’s decision is not likely to greatly restrict Presidential tariff authority going forward,” and outlined alternative statutes that remain available to the executive branch.
President Trump referenced that dissent during remarks following the ruling, noting Kavanaugh’s position that presidential authority in trade matters cannot be “substantially restrained” where Congress has delegated power.
Administration officials have also emphasized that Congress has provided several mechanisms for imposing duties. U.S. Trade Representative Jamieson Greer said prior to the ruling that “Congress appropriately has delegated a lot of tariff authority to the President of the United States,” suggesting that additional trade measures remain possible under other laws.
While IEEPA is now foreclosed as a basis for sweeping tariffs, several established trade statutes continue to provide potential avenues:
Section 232 – National Security
Section 232 of the Trade Expansion Act of 1962 permits the president to impose tariffs if the Commerce Department determines that specific imports threaten national security. This authority has previously been used to impose duties on steel, aluminum, and certain automotive products.
Section 232 requires a formal investigation that can last up to 270 days before action is taken. Although slower than emergency-based authorities, it remains legally established and has already been applied to roughly 10% of U.S. imports.
Section 301 – Unfair Trade Practices
Section 301 of the Trade Act of 1974 authorizes the United States Trade Representative to investigate foreign trade practices deemed unfair or discriminatory. If violations are found, the president may impose targeted tariffs.
The Trump administration previously relied on Section 301 to impose tariffs on Chinese goods in response to intellectual property and market access concerns. The statute requires investigation, notice, and public comment, making it more procedurally structured but also more defensible under judicial review.
Section 122 – Balance of Payments
Section 122 of the Trade Act of 1974 allows the president to impose temporary global tariffs of up to 15% to address “large and serious” balance-of-payments deficits. These measures may remain in place for 150 days unless Congress extends them.
Although this authority has not been used at the presidential level, it could provide a short-term mechanism for broader tariff action tied to trade imbalances.
Section 338 – Discriminatory Trade Practices
Section 338 of the Tariff Act of 1930 permits the imposition of duties if a foreign country is found to discriminate against U.S. commerce. The statute has been rarely invoked but remains available as a targeted response mechanism.
While none of these statutes replicate the immediate scope and flexibility of IEEPA, they offer defined legal frameworks with clearer congressional authorization.
The Supreme Court’s ruling leaves intact other trade statutes and does not limit the president’s ability to act under authorities specifically granted by Congress. However, each of these provisions requires investigative findings or statutory triggers that may extend timelines and invite further litigation.
With IEEPA-collected tariffs now subject to legal uncertainty and potential refund obligations, trade policy is expected to shift toward these alternative statutory tools. As new investigations and proceedings begin under existing trade laws, the administration retains several avenues to continue pursuing tariff-based trade strategies.
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