The Supreme Court of the United States today overturned the tariffs instituted by the Trump administration last year. The Administration used the International Emergency Economic Powers Act to levy tariffs on a country-by-country basis.
The Court ruled: “IEEPA does not authorize the President to impose tariffs ... Many statutes grant the Executive the power to ‘regulate.’ Yet the Government cannot identify any statute in which the power to regulate includes the power to tax.” The Court specified that the President must seek congressional approval for tariffs: “The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”
In a letter to its members, the American Hotel & Lodging Association noted that over the past year, it had “voiced strong concerns” to both the White House and Congress “about how tariffs contribute to rising costs on a broad range of goods, from food and beverage to operating supplies to building materials, used by hoteliers every day.
“It is important to note that today’s ruling does not impact tariffs on furniture, kitchen cabinets, vanities, and certain building materials permitted by Section 232 of the Trade Expansion Act, which the Administration executed separately.
“There are many outstanding questions, however, in the immediate aftermath of this ruling about how the Administration may adjust its broader trade policy, whether trade agreements with foreign countries will remain in place, and whether and how any payments may be refunded.
“While we continue to advocate with policymakers about the impacts of tariffs on the industry, we will continue to provide details on what’s next as they become available.”