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President Donald Trump has unleashed what many are calling a global trade war with his recent implementation of sweeping tariffs affecting nearly every U.S. trading partner. But as markets tumble and tensions escalate, an important question emerges: Does Congress have the power to intervene, and will they actually use it?
On Wednesday, Trump announced a blanket 10% duty on imports from almost every country worldwide, with dozens of nations facing even higher tariff rates. This dramatic policy shift has had immediate consequences:
These new import duties follow other protectionist policies that Trump has implemented since returning to office in January. The President has consistently championed tariffs as an economic cure-all, despite growing evidence of their negative impact on markets.
Trump’s executive order implementing what he calls “reciprocal tariffs” cites four sources of authority in the United States Code, most notably:
By using these laws in tandem, Trump declared a national emergency in response to what the order describes as an “unusual and extraordinary threat” to America’s economy and security. This threat, according to the order, stems from “the domestic economic policies of key trading partners and structural imbalances in the global trading system.”
Notably, Trump is the first president to use the IEEPA to impose tariffs, according to the Congressional Research Service. He initially invoked this law in February when announcing tariffs on Canada, Mexico, and China.
This situation highlights a fascinating constitutional dynamic. Under the U.S. Constitution, the power to tax and impose tariffs belongs primarily to Congress, not the president:
However, over time, Congress has enacted laws delegating some tariff authority to the executive branch. After the economic devastation of the Great Depression and the controversial Smoot-Hawley Tariff Act, lawmakers began giving presidents more flexibility on trade policy.
“The primary reason was, it was unwieldy for them,” explains Scott Bomboy, editor in chief of the National Constitution Center, referring to lawmakers’ reluctance to manage detailed tariff adjustments.
Today, at least six federal statutes delegate some tariff authorities to the president, according to the Congressional Research Service. The courts have generally upheld this presidential authority when challenged.
As the market sell-off deepens, bipartisan opposition to Trump’s tariffs is beginning to emerge. Recent developments include:
“For too long, Congress has delegated its clear authority to regulate interstate and foreign commerce to the executive branch,” Sen. Chuck Grassley (R-Iowa) said in a statement supporting the bill, which he co-sponsored with Sen. Maria Cantwell.
While Congress technically has the power to pass legislation that repeals or restricts the president’s tariff authority, the political reality is more complicated. Although some bipartisan concern is evident, it remains unclear whether lawmakers will take decisive action to curtail Trump’s trade policies.
The economic stakes couldn’t be higher. As Kaine pointedly noted, “Donald Trump started in office with the strongest economy in the world. He has, in two months, with the chainsaw and the tariffs turned it into one with flashing red lights and question marks.”
As markets continue to react and global tensions rise, the question remains: Will Congress reassert its constitutional authority over trade policy, or will the legislative branch continue to allow the president’s unprecedented use of emergency powers to reshape America’s economic relationships with the world?
For businesses, investors, and consumers caught in the crossfire, the answer can’t come soon enough.