The Jacob Shapiro Podcast The Legality of Trump’s Tariffs and U.S. Trade Power
Nov 6, 2025
This chat features Peter Harrell, a Yale-trained lawyer and former Biden administration official with deep insights into trade policy. They dive into the Supreme Court's pivotal hearing on tariff legality, discussing the 1977 emergency powers statute that underpins Trump’s tariffs. Peter explains the implications of the IEPA case, the potential economic fallout, and how small businesses might be affected. They also explore the future of U.S. trade relations, particularly with Canada and implications for global power dynamics.
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Court Skepticism Over IEPA Tariff Power
- The Supreme Court appeared skeptical that the 1977 IEPA statute authorizes broad tariffs like Trump's universal reciprocal and fentanyl tariffs.
- Justices suggested IEPA might allow narrow emergency measures but not the sweeping tariff program the administration used.
IEPA Language Lacks ‘Tariff’ Or ‘Tax’
- IEPA authorizes the president to "regulate the importation or exportation of any property" but never mentions tariffs or taxes.
- The Trump administration interprets "regulate" to include taxing imports, a reading previous presidents and lawyers rejected.
Historical Use Of IEPA Doesn’t Include Tariffs
- Historically IEPA has been used for sanctions and export controls, not tariffs; many lawyers find the tariff reading unusual.
- The government points to older cases and predecessor statutes to justify a tariff authority, but that precedent is thin.