Summers Criticizes Trump's Use of Emergency Powers for Tariffs

Former Treasury Secretary Larry Summers has weighed in on President Trump's use of emergency powers to impose tariffs, as the Supreme Court prepares to hear a case challenging the legality of those actions. Summers argues that Trump's reliance on emergency powers in this context is "deeply problematic."

Legal Basis for Tariffs Questioned

Summers stated in an interview that the circumstances cited by Trump to justify the tariffs “don’t really reflect some kind of extraordinary event like 9/11 or the collapse of the dollar.” He further noted, “If this is the right thing to do, the president ought to be able to persuade Congress and get it done through due process.”

Trump Administration's Supreme Court Defense

The Trump administration is set to argue before the Supreme Court on Wednesday that the president has the authority under a 1977 law to impose sweeping tariffs in response to dire situations, including the national trade deficit and the widespread deaths and addiction related to fentanyl imports.

Broad Definition of Emergency

“If it’s simply that the president is worried about the current economic situation and wants to use tariffs as a tool, to define that as an emergency is pretty problematic given our democratic traditions,” said Summers, a Harvard professor and Bloomberg Television contributor.

Scope of Presidential Power in Trade

Critics point out that the International Emergency Economic Powers Act (IEEPA) does not explicitly authorize the president to use tariffs to address the conditions cited by the government, and that trade issues fall under the purview of Congress, not the executive branch.

Tariffs Not the Right Tool

Summers added that, legal arguments aside, the tariffs implemented during Trump's second term are not the right tool to address the long-term decline of American manufacturing, the fiscal deficit, or foreign debt.

Suggested Solutions

Speaking on addressing the US reliance on foreign capital imports, which is the flip side of other countries’ trade surpluses with the US, he stated, “The right measures would involve reducing budget deficits, raising the nation’s saving rate.”

Doubt over Emergency Justification

The former Treasury Secretary concluded, “It’s hard to argue that there is something about the economic situation today that we haven’t seen for most of the last 25 years, that rises to the level of justifying the use of emergency powers.”

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