Name: The Legal Fight Over Trump’s Tariffs
Uploaded: 2025-06-01T14:00:00Z
Duration: 6 min 29 s
Description: Journal Editorial Report: Will President Trump's trade agenda survive U.S. Courts?

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Journal Editorial Report: Will President Trump's trade agenda survive U.S. Courts? Photo: Chip Somodevilla/Getty Images

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Journal Editorial Report: Will President Trump's trade agenda survive U.S. Courts?

The Legal Fight Over Trump’s Tariffs

Welcome to "The Journal Editorial Report." I'm Paul Gigot. The White House is vowing to fight, all the way to the Supreme Court if necessary, after a federal court on Wednesday struck down President Trump's sweeping global tariffs. A three-judge panel of the US Court of International Trade sided with a dozen Democratic attorneys general and a group of small businesses, who argued that the president overstepped his authority by declaring a national emergency to impose his Liberation Day tariffs, as well as those on Canada and Mexico. Federal appeals court put a stay on the trade court's ruling, Thursday, while it considers the administration's challenge, but the White House says the legal battle will not derail the president's trade agenda. Here's Trump economic advisor Kevin Hassett.

If there are little hiccups here or there because of decisions that activists judges make, then it shouldn't concern you at all, and it's certainly not gonna affect the negotiations, because, in the end, people know President Trump is 100% serious and they also have seen that President Trump always wins.

Let's bring in our panel: "Wall Street Journal" columnist Kim Strassel and Allysia Finley and an Editorial Board member Kyle Peterson. So, Allysia, is this merely a hiccup, as Kevin Hassett says?

Well, I think it's a major setback and actually a major moment in American politics, or economics, and for the law. So, what happened is the president invoked this 1977 law that usually allows him broad powers to impose sanctions on foreign countries.

Paul: When he declares an emergency.

When he declares a national emergency. And he said that the provision in the law that allows him to regulate, quote, unquote, "importation of foreign goods" also allowed him to impose tariffs; however, no president has ever done that in the past. And now in a very detailed ruling by a three-judge panel, the court said, "Well, no, based on the major questions doctrine and separation of powers, Congress did not give you this power expressly. You are exceeding your executive authority," and blocked it. I think it's likely to be upheld on appeal.

By the next court that's hearing it? Or by the Supreme-

The federal circuit and, I think, ultimately up to the Supreme Court if President Trump decides to take it up there.

Kim, the president, or Kevin Hassett, said that this was a decision by activist judges. You've read the decision. Is that sound plausible to you?

No, not at all, and in fact, one of the judges; I mean two of them; were appointed by Republican presidents, Paul. The reality is is that this is a very straightforward reading. As Allysia noted, this is an unprecedented move by a president, and the major questions doctrine is a really important piece of this because as we're now hearing and as people who follow trade know, there are many other sections of different trade laws that Congress has very specifically given the president. They has to go through certain investigations and steps and hoops. Sometimes, they are limited, but he has the ability to bring tariffs by other means. He avoided all of those and instead reached for this one because it allowed him to do... Well, he thought it allowed him to do sweeping tariffs without all of the rigmarole that he's usually required, and that was one of the things that the judges said is "hey, you have other things. You're gonna have to do a little work, but this is one that Congress did not give you. Specifically, look at the ones they did. And so you are violating the major questions doctrine, taking an action where Congress has had no say."

That major questions doctrine says, Kyle, that before a executive can move on big, big issues, it has to have explicit support in the law from Congress, and that's what they're saying Trump doesn't have here. The emergency declaration point is very important just as a matter of law, and conservatives should pay attention here because Democratic president could declare an emergency on climate, say, climate change, and I'm gonna impose tariffs on countries whose policies on climate I don't like. Now, under this ruling, they would not be able to do that.

Right, or they could say, "I'm gonna declare a climate emergency. And so anything that is powered by gasoline that is imported to the United States or any parts for gasoline engines are now subject to a 100% tariff." That I think is the importance of what the trade court has done here. This 1977 law has been used mainly as a matter of sanctions. So, there's a bunch of Americans that get taken hostage in Iran, for example, the president can freeze transactions and do things like that. But what the trade court said is that the expansive power that the president's claiming here to reorganize American trade with every country on the basis of an emergency is not clearly a power that has been granted by Congress. And so they're deciding this case for this president, this specific instance of what President Trump has done here, but they're also setting a rule of how this law is going to be interpreted. And that's what the Supreme Court, I think, will do if this case gets up to the justices.

And the major questions doctrine was issued by a court that includes Donald Trump's nominees, Allysia. But let's talk about this point Kim raised, which is the other authorities the president has to impose tariffs. Do you think that the president will use those to reimpose the tariffs?

I have no doubt that he will. It depends on which authorities they go to first. Now, there's Section 122 of the trade law that allows him to impose tariffs of up to 15% for up to 150 days to remedy balance-of-payments problems. He actually circumvented that by imposing these latest tariffs. There's also Section 301, which allows him to impose tariffs on countries with unfair trade practices. And then he could go to Section 338 of the Smoot-Hawley Act, which has never, also, been done, which allows him to impose tariffs up to 50% against countries that discriminate against the US. So there are a lot of other tools he could use if he wants to.

So the upshot here is, even if he loses on this one... I agree with you. I think he will if it goes up to the Supreme Court, which is why I think he probably should not appeal, but he still has a lotta tools to impose tariffs, and that's because Congress has ceded that power to the president.

WSJ Opinion: The Legal Fight Over Trump’s Tariffs

From the award-winning opinion pages of The Wall Street Journal, the Journal Editorial Report sees columnists and members of the Journal Editorial Board debate the major economic, political and cultural issues of the day. 
From the policy debates to the political fights, each week get critical perspective and the analysis you need on developments from Washington.

WSJ Opinion: The Legal Fight Over Trump’s Tariffs

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