Question

The U.S. Constitution is clear that Congress has the power too regulate commerce with foreign nations. This control extends to and includes the power to levy tariffs. Were the 2018-2019 tariffs levied by President Trump constitutional?

Answer 1

The trade tariffs levied by the Trump administration on the different nations of the world including China are part of the “America First” economic policy of the administration, for reducing the trade deficit of the nation. Through the tariffs, the administration aims to switch from the multilateral free trade agreements to the more bilateral trade relations and deals. Some of the examples of these tariffs include the tariffs imposed by President Trump on aluminum (10%) and steel (25%) imported into the USA from different countries including India, and solar panels (30%) that are manufactured by China.

The Constitutionality of the Trump Administration’s 2018-19 Tariffs

According to Article 1 (Section 8) of the Constitution of USA, the Congress of the nation has all the power to levy as well as collect the taxes, imposts, duties, and excises. With the introduction of the “Trading With The Enemy Act” of the year 1917, the president has also been empowered by the Congress to impose any kind of tariff when the country is at war, and the trade that is affected may or may not be connected to war. The “Trade Expansion Act” of the year 1962 also says that the president can impose quotas for tariff for offsetting any adverse impact on the country's national security. Section 232 of the Act gives the president the legal authority, which was exercised by Trump when he imposed 25% tariff on the steel imports.

Another such act introduced was the “Trade Act” of 1974, according to which the president is free to impose a 15% tariff on the foreign trading nations for a period of 150 days (the period can be extended subsequently with Congress’s approval), when he/she finds that the trade impacts the national security (due to imports) adversely. The “International Emergency Economic Powers Act” of the year 1977 gives the president authority to increase the tariffs in a limitless way, at the time of national emergency. According to the “Tariff Act” of the year 1789, the Government of the country can raise the tariff for the protection of manufacturers, encouragement of the industry, and for discharging the debts of United States.

For his economic decisions and tariffs, Trump and his administration are facing resistance from some members of the Congress, own members of the administration, companies in the USA and abroad, and even national governments across the globe. There have been lawsuits filed against the aggressive use of taxes by the Trump administration as well. For instance, a lawsuit has been filed by the “Alliance of Steel Importers”, which questions the constitutionality of Section 232 of Trade Expansion Act (1962). According to the petitioners, the act gives too much power to the president, which is the founding fathers of the constitution wanted to grand to the Congress only.

The court petitions may take months or even years, and a decision may also come out in favor of the administration and Trump. As of now, it can be said that Trump is acting within his constitutional rights and privileges that he has as the President of the USA.