In the USA, Congress holds the primary constitutional authority for imposing tariffs. Article I, Section 8 of the U.S. Constitution grants Congress the power "To lay and collect Taxes, Duties, Imposts and Excises" and "to regulate Commerce with foreign Nations."12
However, over time, Congress has delegated significant authority to the President to impose and adjust tariffs under certain conditions.3 This delegation is typically outlined in various statutes, such as:
- Section 232 of the Trade Expansion Act of 1962: Allows the President to impose tariffs on imports that threaten national security.4
- Section 201 of the Trade Act of 1974: Enables the President to raise tariffs temporarily when a surge in imports causes or threatens serious injury to a domestic industry (often after an investigation by the U.S. International Trade Commission - ITC).5
- Section 301 of the Trade Act of 1974: Authorizes the U.S. Trade Representative (USTR) to impose tariffs on foreign countries engaging in unfair trade practices.
- International Emergency Economic Powers Act (IEEPA): Allows the President to regulate international economic transactions, including trade, during a declared national emergency.6 However, the use of IEEPA for imposing broad tariffs has recently been challenged in court, with some rulings indicating it may exceed the authority granted to the President for this purpose.
While the President exercises considerable power in setting tariff policy through these delegated authorities, Congress retains the ultimate power to legislate on tariffs and can limit or expand presidential authority through new laws.7 The courts also play a role in reviewing the constitutionality and legality of presidential tariff actions.8
