Sharing the Facts About the Limits of Presidential Power on Tariffs

Several of the Trump administration’s economic proposals, including an evolving series of tariffs, stretch the limits of constitutional authority. These proposals, which rely on shaky legal interpretations of presidential emergency powers, are causing economic uncertainty for states.

Taxing imported goods from many of America’s closest trading partners could lead to higher prices on everyday products and hurt industries in states.

President Trump invoked the International Emergency Economic Powers Act (IEEPA), which gives the president broad authority during national emergencies with hostile nations. He claimed he was able to take this broad action because of issues around immigration and drug trafficking. Whether the U.S. is in an emergency or whether tariffs qualify as legitimate action under that law are separate questions.

A dozen state attorneys general sued the Trump administration over the president’s use of tariffs, arguing he “has upended the constitutional order and brought chaos to the American economy.” Under the Constitution, the power to issue tariffs rests with Congress, not the executive branch. Further, the attorneys general point out that the emergency powers law Trump is using does not “expressly include imposing or collecting tariffs.”

On Feb. 20, 2026, the U.S. Supreme Court ruled that under IEEPA, the president did not have the authority to unilaterally issue tariffs on other nations. The justices suggested the U.S. may have to refund billions to importers.

“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it,” Chief Justice John Roberts wrote in the majority’s opinion.

Historically, presidents have used the 1977 law to issue sanctions on countries supporting international terrorism or to block international arms sales to foreign adversaries. It has never been used at this scale in global trade.

While Trump has since postponed or amended many of the tariffs he announced, states are facing ongoing economic uncertainty because of them. The tariffs have plunged global markets, deepened experts’ concern of a potential recession, and working people are feeling the effects.

Trump’s decision to singlehandedly add a tax on imported products is unpopular among the American people as well. Polling from States United shows that seven in ten Americans think the tariffs will drive up cost of goods. A majority of those surveyed believe that the U.S. economy will suffer as a result.

Here are some key takeaways about the Trump administration’s sweeping tariffs and the limits of presidential power:

• The U.S. Supreme Court ruled the law does not allow President Trump to unilaterally impose sweeping tariffs.
  • No matter how much the president wants to warp the meaning of words in a law, he cannot justify that power grab.
  • Congress did not give the president that power.
• Trump is disregarding the separation of powers outlined in the Constitution.
  • The president must respect the separation of powers.
  • The Constitution says the power to issue tariffs rests with Congress, not the president.
  • Trump has skirted the legislative branch to act by himself, going beyond constitutional limits and violating the foundational American principle of separation of powers.
• The president tried to claim more power to act without Congress. The states will continue to ensure that does not happen.
  • State attorneys general are providing a check on the overreach of the federal executive branch through this and other lawsuits.
• The president is far exceeding his emergency powers.
  • The law that Trump is using does not list tariffs as one of the economic tools the president can use to punish hostile nations. The law has never been used like this.
  • Trump is claiming the U.S. is in a national emergency, allowing him to impose tariffs on both foes and friends. But the president is stretching the definition of an emergency to claim more power to act without Congress.
• Taxing imported goods are widely unpopular with the American people.
  • Polling from States United shows that nearly three-quarters of Americans believe Trump’s tariffs will make the price of goods rise. Not only do a huge majority of Democrats and independents agree on that point but so do just under half of Republicans.
  • States United’s poll also showed that more than half of Americans think Trump’s tariffs are going to hurt the economy.
  • These numbers are likely to rise as Americans feel the full economic effects of the tariffs. As costs increase and American workers’ budgets tighten, tariffs will continue to have harsh impacts on Americans in every state.
• Trump’s tariffs have shocked the economy and hurt Americans’ wallets.
  • The wide-reaching tariffs have targeted nearly every country in the world, including many of America’s allies. Prices are going to rise, which will make many products unaffordable for many Americans.
  • These tariffs are likely the largest tax hike on the American people in our lifetime. The economy is shrinking, economists fear we are heading into a recession, and experts expect wages will fall.
  • Americans could lose jobs in the long term, as countries retaliate with their own tariffs and are actively boycotting U.S.-produced goods.
  • The Trump administration has even said tariffs are a negotiating tool to get concessions from other nations. By doing this, the president is using the American people as a bargaining chip.