Does the International Emergency Economic Powers Act (IEEPA) of 1977 authorize the President to dictate tariffs at his whim by executive order ?
The word « tariff » appears nowhere in the text of this law. It is also difficult to argue for emergency regarding the US economy’s trade deficits, since these have begun during the 1970s (the very first oil shock, due to the Yom Kippur War, already the responsability of the Israelis, what shit-stirrer they are !).
Three judges of an international trade court answered in the negative. It is now up to the Court of Appeals for the Federal Circuit to hear the executive branch’s arguments. Against the Trump administration, a coalition of plaintiffs from twelve democratic-led states (including California) and five small businesses are arguing.
What is at stake ? It’s the power to levy taxes, a triffle. Constitutionally, tariffs and customs duties are taxes levied by the federal government on products. However, in all democracies around the world, the fiscal power belongs to a deliberative legislative assembly – the Congress in our country, as representing the people – never to a single individual representing himself alone, as the executive branch. Donald Trump is therefore seeking to ascribe to him exorbitant power, contrary to the entire historical and fiscal tradition of the United States over the past two hundred years.
What will the Supreme Doormat do when this case will reach his desk ? It won’t be for several months. By that time, global trade will have already been so disrupted by the Trump administration that even if the Doormat-Court were to be moved by divine grace and go against the President’s wishes, it would be too late. And by then, all of Trump’s interlocutors will have chickened out one after the other.
Except for China, which is the source of the real problem with its anti-competitive practices of excessive subsidies to solar panels and electric batteries industries. But China has the rare-earth elements that Trump wants at all costs, and China will be the only who succeed in making him bend.