Consumer Watchdog says no legal support for president’s tariff power

Spread the love

A nonprofit group told the nation’s highest court that even if a 1977 law that doesn’t mention tariffs gives the president unbounded tariff authority, Congress doesn’t have the authority to delegate that kind of “immense power.”

Trump has focused his economic agenda on tariffs. A group of small businesses, some Democrat-led states, and two education businesses have challenged the president’s tariff authority under the International Emergency Economic Powers Act of 1977.

In his second term, Trump used the 1977 law to reorder global trade through tariffs to give U.S. businesses an advantage in the world market. Using tariffs under the International Emergency Economic Powers Act, Trump put import duties of at least 10% on every nation that does business with the U.S. Some nations, including many U.S. allies, face much higher tariff rates.

The U.S. Supreme Court agreed to take up the challenge to Trump’s tariff authority in September, setting a schedule for an expedited review.

Consumer Watchdog, a nonprofit dedicated to protecting consumers, noted in its friend-of-the-court brief that the Supreme Court hasn’t struck down a statute on delegation grounds since 1935.

However, attorneys for the group argued: “But it also has never encountered a law like IEEPA as applied to the imposition of tariffs.”

“As a result of the twenty-three separate Executive Orders … these tariffs have come on and come off, and rates fluctuated up or down, with ever changing rationales and exceptions, with no ties to any limits or conditions in IEEPA – and everything determined by the unfettered choices of the President,” attorneys for the group wrote. “That is not law in our constitutional system.”

The attorneys pointed to two other reports that show the “immense power” Trump claims under the 1977 law. One report from U.S. Customs and Border Protection shows the U.S. has already collected nearly $90 billion in tariffs through September. The other report is from the Congressional Budget Office, which estimated tariffs could bring in $4 trillion over the next decade. That CBO report came with caveats and noted that tariffs will raise consumer prices and reduce the purchasing power of U.S. families.

“The constitutional flaw in nondelegation cases depends on what Congress did, or more precisely, did not do,” Consumer Watchdog attorneys wrote. “Here, it failed to provide guardrails to limit the ability of the President to impose whatever tariffs he pleases.”

Attorneys for Consumer Watchdog also noted “tariffs of the magnitude at issue here inevitably raise consumer prices and threaten the economic security of working families and small businesses.”

In August, the U.S. Court of Appeals for the Federal Circuit affirmed a previous lower court ruling saying Trump did not have the authority, but said Trump’s tariffs could remain in place while the administration appeals to the U.S. Supreme Court. In the 7-4 decision, the majority of the Federal Circuit said that tariff authority rests with Congress. It used that same language: “We discern no clear congressional authorization by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs. Reading the phrase ‘regulate … importation’ to include imposing these tariffs is ‘a wafer-thin reed on which to rest such sweeping power.'”

A Supreme Court victory for Trump would cement the federal government’s newest revenue source – the highest import duties in nearly a century – in place, at least for now.

Trump has said a loss would be catastrophic for the U.S. economy.

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products throughout the U.S.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods that the importer pays, not the producer. The importer pays the cost of the duties directly to U.S. Customs and Border Protection, a federal agency.

Oral arguments before the Supreme Court are set for Nov. 5.

Leave a Comment





Latest News Stories

'Liberation Day' reignites D.C. statehood debate

‘Liberation Day’ reignites D.C. statehood debate

By Sarah Roderick-FitchThe Center Square As the National Guard begins patrolling the streets of Washington, D.C., after President Donald Trump announced their deployment in support of making the city safer,...
Trump to meet with Democratic leaders to discuss govt funding bills

Trump to meet with Democratic leaders to discuss govt funding bills

By Thérèse BoudreauxThe Center Square With government funding progress halted and a government shutdown deadline looming, President Donald Trump is reaching across the aisle to Democratic congressional leaders to discuss...
WATCH: Illinois Democrats blast Trump, Republicans at state fair

WATCH: Illinois Democrats blast Trump, Republicans at state fair

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) − Illinois Democrats say their party will win across the United States in 2026, with the Land of...
Social Security's 90th anniversary sparks debate over how to address insolvency

Social Security’s 90th anniversary sparks debate over how to address insolvency

By Thérèse BoudreauxThe Center Square On the day before Social Security’s 90th anniversary, fiscal watchdogs are urging Congress to seriously address the program’s impending funding shortfalls – particularly in light...
Colorado ranks eighth nationally for battling antisemitism

Colorado ranks eighth nationally for battling antisemitism

By Elyse ApelThe Center Square The Anti-Defamation League recently named Colorado one of nine states “leading the way” on combatting antisemitism. The Jewish Policy Index was conducted by the ADL...
Trump speaks with Zelenskyy, European leaders ahead of Putin meeting in Alaska

Trump speaks with Zelenskyy, European leaders ahead of Putin meeting in Alaska

By Caroline BodaThe Center Square President Donald Trump met virtually with Ukrainian President Volodymyr Zelenskyy, German Chancellor Friedrich Merz and other European leaders before flying to Alaska for a U.S.-Russia...
Texas House Democrats may return after first special session is over

Texas House Democrats may return after first special session is over

By Bethany BlankleyThe Center Square After the Texas House didn’t reach a quorum on Tuesday, the Texas House Democratic Caucus said absconding House Democrats would return after the first special...
Illegal border crossings reach lowest level in recorded US history in July

Illegal border crossings reach lowest level in recorded US history in July

By Bethany BlankleyThe Center Square Illegal border crossings nationwide dropped to their lowest level in recorded history in July, according to the latest U.S. Customs and Border Protection data. “CBP...
GE Appliances announces $3 billion investment in U.S. production

GE Appliances announces $3 billion investment in U.S. production

By Andrew RiceThe Center Square GE Appliances announced a $3 billion investment over the next five years to increase production at facilities across the country. The appliance manufacturer, whose parent...
VA reduces benefits backlog as concerns linger over potential cuts

VA reduces benefits backlog as concerns linger over potential cuts

By Brett RowlandThe Center Square The Department of Veterans Affairs said it processed more disability benefits compensation and pension ratings claims in a year than ever before, despite concerns that...
DOJ settles West Point lawsuit over race-based admissions

DOJ settles West Point lawsuit over race-based admissions

By Chris WadeThe Center Square The Justice Department has reached a settlement with the U.S. Military Academy at West Point to resolve a federal lawsuit targeting the elite schools over...
Texas AG Paxton files motion of contempt against O’Rourke

Texas AG Paxton files motion of contempt against O’Rourke

By Bethany BlankleyThe Center Square Texas Attorney General Ken Paxton has filed a motion for contempt against former U.S. Rep. Robert Francis (Beto) O’Rourke claiming he violated a temporary restraining...
WATCH: Illinois In Focus Daily | Wednesday Aug. 13th, 2025

WATCH: Illinois In Focus Daily | Wednesday Aug. 13th, 2025

By Greg Bishop | The Center SquareThe Center Square (The Center Square) – In today's edition of Illinois in Focus Daily, The Center Square Editor Greg Bishop shares comments from...
Illinois law empowers officials to crack down on predatory towing

Illinois law empowers officials to crack down on predatory towing

By Catrina Barker | The Center Square contributorThe Center Square (The Center Square) – Beginning Jan. 1, a new Illinois law cracks down on predatory towing by letting the Illinois...
Texas Supreme Court sets expedited schedule in Paxton, 13 House Dems case

Texas Supreme Court sets expedited schedule in Paxton, 13 House Dems case

By Bethany BlankleyThe Center Square The Texas Supreme Court has set an expedited schedule in a case filed by Attorney General Ken Paxton requesting the court remove 13 Texas House...