by Miloš Stevanović

Before the United States Supreme Court this season lies a question that could profoundly influence the country’s trade policy and the future of its economic relations with the world — can the President of the United States unilaterally impose tariffs under the International Emergency Economic Powers Act (IEEPA), or does such action still require the consent of Congress?

This concerns a legal framework previously used by former President Donald Trump during his term, when he declared trade deficits to be a “national threat” and invoked the 1977 International Emergency Economic Powers Act. That law, originally intended for emergencies in foreign policy, authorizes the president to impose sanctions or restrict economic activity in the event of a threat to national security. Trump’s administration stretched the law’s interpretation to its limits — using it as a basis for imposing tariffs not only on rivals but also on allies, from China to Canada.

Today, as the American economy once again feels the strain of global trade competition and inflation, the issue has become central once more. If the Supreme Court decides that the president cannot use the IEEPA to impose tariffs without congressional approval, it would represent a significant limitation on executive power. The administration would lose one of its most flexible economic tools — the ability to react swiftly to trade or currency crises without political gridlock on Capitol Hill.

On the other hand, if the Court upholds a broad interpretation of presidential authority, future presidents (including Trump himself, should he return to the White House) would gain nearly unlimited power over trade policy. Such a ruling could seriously shake the U.S. system of checks and balances, as Congress would effectively be excluded from decision-making on matters that have enormous impact on the economy and global partners.

Legal experts emphasize that the IEEPA was never intended as an instrument for permanent trade policy, but for crisis situations — war, sanctions, or the protection of national security. Yet over the decades, U.S. presidents have expanded its scope, and Trump, according to many, turned it into a tool of political pressure and bargaining leverage.

Whatever the outcome, one thing is clear: the Supreme Court’s decision will determine how much future U.S. trade policy will be driven by the political will of an individual versus institutional consensus. If the president retains the right to use tariffs as an emergency instrument, the global economic order could enter a new era of uncertainty — where economics and law intertwine in the daily struggle for dominance and power.

(Author’s view: A clearer boundary is needed between economic sovereignty and political improvisation. The United States, as the world’s leading economy, must not turn trade policy into a campaign tool.)

/ / /

"Standard Prva" LLC Bijeljina is a company registered in Bijeljina at the District Commercial Court in Bijeljina. Company’s activities are accountancy, repurchases of receivables, angel investing and other related services. Distressed debt is a part of the Group within which the company repurchases the receivables, which function and are not returned regularly.

Lawyer’s Office Stevanović is the leading lawyer’s office in the region with the seat in Bijeljina. The LO abbreviation represents Lawyer’s Office of Vesna Stevanović and Lawyer’s Office of Miloš Stevanović.

Contact for media press@advokati-stevanovic.com or via telephone 00 387 55 230 000 or 00387 55 22 4444.