Trump’s Tariffs Ruled Unconstitutional—And Congress Must Reclaim Its Power

Originally published on Substack. 

When courts have to remind the president that he can’t unilaterally tax Americans, it says a lot about how far we’ve drifted from our constitutional design.

On August 29, a federal appeals court ruled that President Trump’s sweeping “Liberation Day” tariffs and related measures, imposed under the International Emergency Economic Powers Act (IEEPA), were unconstitutional.

The court found that the law doesn’t give the executive branch unilateral authority to levy tariffs on goods from other nations. While the tariffs remain in effect until October 14 under a temporary stay, the case is now on track for likely review by the U.S. Supreme Court (MarketWatch, AP).

This is a welcome ruling. Tariffs are taxes, plain and simple. And under our Constitution, the power to tax belongs to Congress—not the president.

​Why This Matters

The court’s decision doesn’t strike down all tariffs. Measures enacted under Section 232 (steel, aluminum) and Section 301 (China trade investigations) are still in place. But the broader “reciprocal” and “Liberation Day” tariffs are now in legal limbo. That’s a good thing: unchecked executive authority to impose tariffs undermines both free markets and constitutional order.

When a president can wake up and slap a tax on millions of American consumers and businesses without debate in Congress, we’ve abandoned the separation of powers. Worse, these tariffs drive up costs for families at the grocery store, the car dealership, and the factory floor—while yielding little to no measurable benefit in return.

Congress Must Step Up

The larger lesson here is not just about Trump. Presidents of both parties have overreached, using emergency powers and trade statutes as blank checks. The Constitution places the power of the purse squarely in Congress’s hands for a reason: to force accountability, restraint, and deliberation in how Americans are taxed.

Unfortunately, Congress has been far too willing to punt this responsibility to the executive branch—allowing presidents to play trade warrior while lawmakers avoid tough votes. That dereliction has contributed to a bloated federal government, record spending, and an unstable economy.

If Congress really wants to help American workers and families, it should:

• Cut spending to bring fiscal sanity back to Washington.
• Flatten and cut taxes to let people keep more of what they earn.
• End corporate welfare and subsidies, which distort markets just as much as tariffs.

That’s the path to lasting prosperity, not endless tinkering with tariff schedules.

The Stakes Ahead

The Supreme Court now has an opportunity to set a clear precedent: the president cannot impose taxes by executive fiat. If the Court affirms this ruling, it will be a victory for constitutional order and for taxpayers.

But Congress shouldn’t wait for the Court. Lawmakers should reassert their Article I powers by tightening statutes like IEEPA, closing loopholes that invite abuse, and taking responsibility for America’s trade and tax policy.

Because here’s the bottom line: Government has no money of its own. Every tariff, every tax, every subsidy comes from the resources of American families and businesses. If we want true economic growth, we need less government meddling, not more.

I’ve seen firsthand, working at the White House Office of Management and Budget, how easy it is for Washington to justify new taxes or spending in the name of “economic strategy.” But prosperity doesn’t come from tariffs or subsidies. It comes from freeing people to innovate, trade, and build without government picking winners and losers.

The courts are right to check executive overreach. Now it’s Congress’s turn to do its job.