Northwestern experts on SCOTUS decision in tariff case

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Northwestern experts on SCOTUS decision in tariff case

Court holds that IEEPA does not authorize the president to impose tariffs

CHICAGO --- The U.S. Supreme Court announced their opinion today in the Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections cases, upholding that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose the tariffs.

"The court's ruling on President Trump's tariffs is a win-win for the constitution and the U.S. economy," says Phillip Braun, clinical professor of finance at Northwestern University's Kellogg School of Management. "The court ruled that the International Economic Powers Act cannot be used to justify a president's imposition of tariffs, but rather they stay in the realm of congress to do so."

The Supreme Court ruled 6-3, with Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissenting.

The following Northwestern faculty are available to media:

Phillip Braun is a clinical professor of finance at Kellogg School of Management. His research focuses on macroeconomy and financial markets, inflation, investments and impact of the Ukraine war on global economies. To set up an interview with Professor Braun, reach out to Shanice Harris at [email protected].

Full quote from Professor Braun:

"The court's ruling on President Trump's tariffs is a win-win for the constitution and the U.S. economy. The court ruled that the International Economic Powers Act cannot be used to justify a president's imposition of tariffs, but rather they stay in the realm of congress to do so.

"It was clear from the initial imposition of the tariffs that they were not about the economy but rather, as a way for Trump to try to impose his will on the global economy.

"The president has always maintained that his tariffs would help the U.S. economy, but the data do not bear that out as is shown in today's GDP release by the Department of Commerce showing the economy only grew at an annual rate of 1.4% in the last quarter of 2025, as well as sluggish labor markets throughout 2025 and this year, and a trade deficit that has continued to increase despite the tariffs.

"It remains to be seen how and at what speed the Trump administration will implement this ruling. Furthermore, the court's ruling does not specify how the tariffs already paid can be returned to those who have paid them, U.S. consumers and businesses."

Mark Witte is a professor of instruction and director of undergraduate studies in the economics department at Northwestern. His research focuses on applied questions in macroeconomics and public finance. His primary interests are in consumption theory and topics in taxation. He can be reached at [email protected] or by contacting [email protected].

Nancy Qian is the James J. O'Connor Professor of Economics at the Kellogg School of Management. Her research provides evidence for the detailed processes of the root determinants of economic development: geography, demography, human capital, institutions and culture. Limited availability on 2/20. To set up an interview with Professor Qian, reach out to Shanice Harris at [email protected].