AGTA Update on U.S. Supreme Court Ruling on Tariffs

By a 6-3 majority, the Supreme Court affirmed lower court rulings that held President Trump exceeded the authority granted to him under the 1977 International Emergency Economic Powers Act (IEEPA). This statute has served as a basis for the imposition of country-by-country reciprocal tariffs, citing “large and persistent” trade deficits as a national emergency last April.

The Court noted that IEEPA gave authority to the executive branch to regulate imports, but not to impose tariffs which has never been done before. Only Congress has the power to impose taxes and tariffs under Article I of the U.S Constitution. However, there are several other tariff authorities Congress delegated to the President based on national security, injury to domestic industries, and discrimination against U.S. businesses, which the administration will consider.

We are still assessing the immediate impact on our members, including the status of potential refunds on duties paid, trade agreements that have already been reached or still under negotiation and official statements from the Trump Administration.

In the meantime, many AGTA members and industry colleagues will understandably have questions. To address them, AGTA has established the following link here where you may submit your inquiries.

Our trade specialist in Washington will review and respond to all questions, and we will provide an update, along with a link to the compiled questions and answers by the end of next week.