President Donald Trump’s comprehensive tariffs might be stymied by a legal argument the Supreme Court employed to former initiatives put forth by President Joe Biden’s administration, Bloomberg reported May 31.
Here are four notes:
- During Mr. Biden’s presidency, the Supreme Court ruled that federal agencies cannot make major political and economic decisions without clear congressional authorization. The argument was used by the court to block the Environmental Protection Agency from enforcing strict pollution limits and prevented the Education Department from cutting student loans for 40 million people.
- The reasoning has become central to a case that is challenging President Trump’s recent tariffs. The U.S. Court of International Trade recently ruled 3-0 that many of Trump’s tariffs exceeded his authority. The tariffs could amount to $1.4 trillion over the next decade, according to the Tax Foundation, a nonprofit think tank.
- The administration claims the reasoning, known as the “major questions doctrine,” does not apply when Congress grants authority directly to the president, especially with respect to national security and foreign affairs.
- The ruling is on hold while appeals continue. The Supreme Court’s future decision, meanwhile, could shape future use of the major questions doctrine.
