President Trump told Congress during his State of the Union address Tuesday evening that he does not need it to enact new tariffs to replace the ones the Supreme Court struck down in its “very unfortunate” ruling last week.
“Congressional action will not be necessary,” he said.
The Supreme Court, in a 6-3 decision released Friday, ruled that the International Emergency Economic Powers Act does not give the president the power to levy large, indefinite tariffs.
Mr. Trump had used IEEPA as justification to implement sweeping global tariffs aimed at combatting trade deficits.
He also used the law as a rationale for tariffs, accusing China, Mexico and Canada of not taking enough action to stem the flow of fentanyl into the U.S.
Some of the justices suggested Mr. Trump would have to ask Congress for the authority to reinstate the tariffs, but the president said he is confident he can use other existing statutes to reimplement his tariff policies.
“They’re a little more complex, but they’re actually probably better,” Mr. Trump said.
The president has announced a 15% global tariff issued under section 122 of the Trade Act of 1974, though that authority is only valid for 150 days unless renewed by Congress.
But the administration is conducting investigations needed to set up more permanent tariffs under Section 232 of the Trade Expansion Act of 1962, which authorizes the president to impose duties or quotas on imports deemed a national security threat, and Section 301 of the Trade Act, which is aimed at counteracting unfair foreign trade practices.
While the president condemned the Supreme Court’s ruling, he said the good news is that “almost all” the countries he has struck trade deals with want to keep them in place.
“The legal power that I as president have to make a new deal could be far worse for them, and therefore they will continue to work along the same successful path that we had negotiated before the Supreme Court’s unfortunate involvement,” he said.
Mr. Trump spoke about his tariffs as more permanent policy to increase revenue rather than temporary levies designed to encourage companies to bring manufacturing jobs back to the U.S.
“As time goes by, I believe that tariffs paid for by foreign countries will, like in the past, substantially replace the modern day system of income tax, taking a great financial burden off the people that I love,” he said.
