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Ag groups react as U.S. Supreme Court limits tariff authority

The U.S. Supreme Court says the International Emergency Economic Powers Act (IEEPA) doesn’t allow the president to impose tariffs.

In a 6 to 3 ruling, the justices say the constitution gives Congress alone the power to lay and collect taxes and duties. Because tariffs are considered taxes, the president has no authority to impose them.

The SCOTUS ruling refutes many, but not all the tariffs imposed by President Trump.

Kam Quarles with the National Potato Council tells Brownfield he’s still reviewing the opinion, but it’s likely the Trump administration will use other trade authorities to invoke tariffs.

“There are other mechanisms to get to this goal,” says Quarles.

The court’s ruling directly affects U.S. tariff policy, which has a ripple effect on trade, ag and the economy.

Other ag groups, like the American Soybean Association and the International Fresh Produce Association, say they welcome the clarification of the limits of IEEPA.

ASA President Scott Metzger says “we urge the President to refrain from imposing tariffs on agricultural inputs using other authorities.”

IFPA says they support targeted tariffs when necessary, but not the widespread use as a default policy, and the association urges policymakers to move away from broad tariffs, lower trade barriers and focus on longer-term trade solutions.

House Ag Committee Ranking Member Angie Craig from Minnesota also welcomes the SCOTUS decision, but says she fears the tariffs have already caused lasting damage, sending more business to South America and it will take years for the U.S. to recover.

House Ways and Means Subcommittee on Trade Chairman Adrian Smith from Nebraska says in light of the decision, the U.S. must ensure trading partners uphold the market access commitments already secured.