Trump Advisors Divided on How to Tariff Iran’s Allies


The Trump administration is reportedly considering leveraging the International Emergency Economic Powers Act (IEEPA)—the same trade law used to impose the now-defunct global tariffs struck down by the Supreme Court in February—to penalize Iran’s allies.

That’s according to White House National Economic Council Director Kevin Hassett, who confirmed that the president was mulling new tariffs of 50 percent on countries that supply weapons to the country, which has been embroiled in conflict with the United States and Israel since late February.

“This is clearly within the president’s tariff power, that if we’re in a state of conflict, then the IEEPA policy is exactly designed for that,” Hassett said during an interview with Fox Business Thursday morning. “Countries really should be careful. If you’re helping our adversary, then President Trump will take note and he’ll take action.”

Hassett’s comments came after an irate evening Truth from Trump, who indicated that the duties would be “effective immediately,” and that there “will be no exclusions or exemptions” to the edict.

But the president’s closest advisors apparently aren’t aligned on the strategy.

On Thursday afternoon, U.S. Trade Representative Ambassador Jamieson Greer told Politico that IEEPA could be used “not so much for tariffs,” but to “prohibit” certain types of trade.

“You can have the same effect with IEEPA as a prohibitive tariff,” he explained. Greer said he was “still reviewing options with the president” to impose the duties and said there were other statutes that could be leveraged.

“The President has numerous executive powers at his disposal to safeguard our national security, including IEEPA. The administration is exploring all available tools to ensure both Americans and the world are safe from any terror threats,” a White House official told the outlet.

Little known or referenced before Trump took office for a second term, IEEPA, a Jimmy Carter-era trade law, authorizes the Commander in Chief to regulate international commerce in the face of a national emergency related to the presence of an “unusual and extraordinary threat” to U.S. security, foreign policy, or the economy that originates wholly or substantially outside of the country.

Trump invoked IEEPA to levy duties on dozens of U.S. trading partners last April. Speaking from the White House Rose Garden on what he termed “Liberation Day,” the president said the nation’s “chronic trade deficits are no longer merely an economic problem—they’re a national emergency that threatens our security and our very way of life.”

But lawmakers and industry questioned the justification that America’s trade imbalance with the rest of the world amounted to an extraordinary threat. Two cases involving a number of small businesses and a dozen state attorneys general made their way through the court system, challenging the president’s executive power to impose duties—which they said amounted to taxes on the American public—without the approval of Congress.

When the consolidated case reached the Supreme Court, the justices voted 6-3 against the IEEPA duties. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote. “The Government thus concedes that the President enjoys no inherent authority to impose tariffs during peacetime.”

During oral arguments, justices on both sides of the political aisle also questioned whether IEEPA imbues the Commander in Chief with the right to impose tariffs at all, even in the case of a national emergency.

It’s notable that less than two months after the IEEPA duties were struck down, the administration is considering going back to the same poisoned well to advance its foreign policy agenda.

This, at a time when the federal government also finds itself owing some $166 billion in refunds to importers who paid the IEEPA tariffs, and Customs and Border Protection is working feverishly to complete the development of a wholly novel tool to facilitate the unprecedented volume of repayments. That tool, dubbed the Consolidated Administration and Processing of Entries (CAPE), will be available to importers on April 20, CBP has said. Numerous lawsuits are also still underway—and being filed daily—in the Court of International Trade, as importers look to secure their rights to refunds.



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