A federal court in Manhattan has ruled unanimously against former President Donald Trump, finding that he overstepped his authority with global tariffs. This decision is a major blow to one of his signature economic initiatives. The outcome reminds us of that most basic and important constitutional principle – that Congress alone has the exclusive power to regulate commerce with foreign nations.
The court reiterated in its ruling that only the president has a duty to protect the economy. This responsibility does not extend so far as to upend Congress’s constitutionally established explicitly international trade powers. The court’s finding underscores an extremely important issue — that the executive branch cannot impose tariffs outside of legislative authority. This principle is abundantly clear in the U.S. Constitution, as well.
During his presidency, Trump unilaterally imposed those very same tariffs to protect American industries. Since that time these tariffs have been on very thin ice. Foes contended these policies would trigger messy trade wars and higher consumer prices. Today’s ruling by the court adds weight to the contention that actions this sweeping should require congressional approval to protect democratic accountability.
This order is a serious defeat to Trump’s economic agenda and his highly contentious anti-trade, anti-NAFTA, and generally anti-internationalist outlook. Supporters of the tariffs argued they were necessary to revive American manufacturing and address trade deficits. Yet, the court’s ruling provides a reminder of the inadequacy of presidential power in commercial actions.
The Manhattan court’s decision marks a landmark shift in the legal understanding of the separation of powers in the U.S. government. Congress has long asserted exclusive authority to regulate commerce. Here’s how this decision could define future economic policies and executive actions.