US President Donald Trump is pushing the limits of trade laws by imposing new tariffs on imports from Canada, Mexico and China. Using the International Emergency Economic Powers Act of 1977 (IEEPA), Trump imposed 25% tariffs on imports from Canada and Mexico and an additional 10% tariff on products from China. The justification for this step was to combat the flow of fentanyl into the US and illegal immigration.
Trade and legal experts say the use of IEEPA to impose import tariffs is unprecedented and Trump’s move could quickly face judicial challenges. IEEPA authorizes the president to impose economic and financial sanctions in times of crisis, but using that authority to impose import tariffs is untested territory. Jennifer Hillman, a professor of trade law at Georgetown University, said it is unclear whether Trump’s action meets the definition of an emergency. There should be a causal link between fentanyl and immigrants and universal tariffs, but in this case, Hillman said, such a link is not clear. If the courts uphold the use of IEEPA for tariffs, Congress would need to reform IEEPA to require more oversight. US Senator Tim Kaine has introduced a bill to restrict the use of IEEPA for tariffs, arguing that it was not designed for import tariffs.
