After IEEPA: Assessing Trump’s Remaining Tariff Arsenal

The Supreme Court has ruled that the emergency tariffs applied under the International Economic Emergency Powers Act (IEEPA) were not authorized by the statute. The decision was 6-3 against Trump, with Justices Thomas, Kavanaugh, and Alito in dissent. The Court determined that Trump’s interpretation of IEEPA was overly broad and did not allow the “ power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time.” Despite this blow to his presidential powers, Trump still has plenty of tariffing tools in his arsenal (discussed below), but we think, given the focus on affordability, that he will be hesitant to use them. So , while we cannot discount the possibility of renewed threats and continued drama in the trade realm, we think that we have seen the peak of effective tariff rates.