Tariffs, Trade Wars, and the Law

Aug 14, 2025

Mark Wu, a Harvard Law School professor and international trade expert, joins to explore the legal intricacies of U.S. tariff policies under President Trump. They delve into Trump's belief that foreign powers exploit the post-1970s trade regime, while discussing statutory tools like Section 232 and the IEEPA that support these tariffs. Wu analyzes the ongoing legal battles from importers and states, the implications for global trade relationships, and the economic uncertainty surrounding U.S.-China relations. It's a fascinating look at trade law's impact on the economy and geopolitics.

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INSIGHT

Disrupting The Post-1970s Trade Order

President Trump views the post-1970s rules-based trade regime as having been exploited against U.S. interests and seeks to disrupt it.
He uses U.S. market leverage and security alliances to push partners to open markets and invest domestically.

INSIGHT

Statutory Basis For Presidential Tariffs

Congress holds the Article I power over foreign commerce, but it has delegated tariff authority to the executive via statutes.
Key statutory tools include Section 232, Section 301, and the International Emergency Economic Powers Act (IEEPA).

INSIGHT

Novel Use Of Emergency Powers For Tariffs

The Trump administration declared national emergencies (e.g., opioids, trade deficits) and then used IEEPA to impose tariffs.
Using IEEPA to enact sweeping tariffs is novel compared with past emergency declarations.

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John is joined by Professor Mark Wu, the Henry L. Stimson Professor at Harvard Law School, an expert in international trade and international economic law. They discuss the legal and geopolitical implications of President Trump’s tariff strategy. The President’s approach is rooted in a belief that the post-1970s international trade regime, which the U.S. helped build, has been exploited by foreign powers to the detriment of American interests, particularly the manufacturing sector and working-class communities. The administration intends to leverage America’s market dominance and security alliances to pressure trading partners into more favorable terms, including opening their markets to exports and investing in America.

To legally impose many of these tariffs, the President has relied on statutory authorities that Congress delegated to the executive branch, such as Section 232 of the Trade Expansion Act of 1962 (covering national security issues from the importation of goods), Section 301 of the Trade Act of 1974 (covering unfair trade practices by foreign countries), and the International Emergency Economic Powers Act (IEEPA), which permits regulation of imports during a declared national emergency. Unlike prior administrations, Trump has used IEEPA not only to declare national emergencies—such as the opioid crisis and trade deficits—but also to impose sweeping tariffs in response.

These actions have sparked a series of legal challenges. Several importers and states have filed suits arguing that the president overstepped his authority under IEEPA. Courts are now scrutinizing whether this use of IEEPA constitutes an overly broad delegation of congressional power and whether the tariffs align with the IEEPA’s statutory language. The Court of International Trade ruled against the administration on this issue. That case is now before the Federal Circuit, which heard the appeal en banc. Whatever the outcome, the Supreme Court is likely to weigh in.

Even if tariffs under the IEEPA are barred by the courts, the administration has other tools at its disposal to achieve the same outcome, including imposing tariffs under Section 232, imposing tariffs under Section 301, and seeking additional legislation from Congress authorizing tariffs against specific countries.

Regardless of legal outcomes, the global trade regime has fundamentally changed. There will be no going back to the pre-Trump regime. Traditional alliances have been strained, other countries are adapting to long-term U.S. unpredictability, and legal precedents set here could impact more than trade law.

Podcast Link: Law-disrupted.fm
Host: John B. Quinn
Producer: Alexis Hyde
Music and Editing by: Alexander Rossi