Global Trade Alteration: Trump's Persistent Push for Tariffs creating a Wide-Reaching Effect

The dispute over President Donald Trump's import tariffs has reached the U.S. Supreme Court, with the government asking for a hearing by September 10. The case, which has significant implications for international trade agreements, the American economy, and the future balance of power between the President and Congress, centres around the question of whether Congress has delegated the power over tariffs to the President.

The tariffs in question, known as the "Liberation Day" tariffs, were imposed on April 2 and impose duties of 10 to 50 percent on most U.S. imports. These tariffs represent the largest increase in U.S. import duties since the Smoot-Hawley tariffs of 1930 and have contributed to the average U.S. tariff rate reaching its highest level in over a century.

The tariffs were imposed under the guise of combating the fentanyl trade, but both the U.S. Court of Appeals and the Federal Circuit's appeals court have ruled that the 1977 International Emergency Economic Powers Act does not allow such sweeping import duties because it contains a provision allowing the President to "regulate" the "importation" of goods in response to an emergency.

The parties involved in the legal dispute are the U.S. government and the plaintiffs who challenged the legality of Trump's import tariffs. The appeal stems from separate lawsuits filed by democratically governed states and a group of small businesses.

The U.S. Court of Appeals' 7-4 ruling affirmed a decision by the U.S. Court of International Trade, which declared many of the tariffs unlawful. The Justice Department has informed the justices that the opponents of the tariffs have agreed to expedite the case before the Supreme Court, with a hearing scheduled for early November.

A defeat for Trump would halve the current average U.S. tariff rate of 16.3%. The case could impact trade worth billions of dollars, and a decision by the Supreme Court is eagerly awaited by both sides. The government's top lawyer before the Supreme Court, Sauer, has argued that the power to regulate imports encompasses the power to impose tariffs or duties on imports. However, the central question remains: does Congress have the power to delegate the authority over tariffs to the President? The Supreme Court's decision in November could provide a definitive answer.