International Emergency Economic Powers Act

The International Emergency Economic Powers Act (IEEPA) is a US law granting the President authority to regulate international commerce during a declared national emergency. Recently, the US Supreme Court ruled against tariffs imposed by former President Trump, which were enacted under IEEPA. This decision is newsworthy because it invalidates tariffs potentially worth over $100 billion, paving the way for refunds to trade partners. The court's ruling, a 6-3 decision, determined that the President's use of IEEPA in this instance was unlawful, specifically in peacetime. While the White House has indicated intentions to replace the tariffs through alternative means, the ruling introduces uncertainty for international businesses and governments. This event highlights the limitations of presidential power in trade policy and the Supreme Court's role in checking executive overreach, with significant financial implications for global trade.