Supreme Court is set to rule on constitutionality of Trump tariffs – but not their wisdom
The future of many of Donald Trump’s tariffs are up in the air, with the Supreme Court expected to hand down a ruling on the administration’s global trade barriers any day now.
But the question of whether a policy is legal or constitutional – which the justices are entertaining now – isn’t the same as whether it’s wise. And as a trade economist, I worry that Trump’s tariffs also pose a threat to “economic democracy” – that is, the process of decision-making that incorporates the viewpoints of everyone affected by the decision.
Founders and economic democracy
In many ways, the U.S. founders were supporters of economic democracy. That’s why, in the U.S. Constitution, they gave tariff- and tax-making powers exclusively to Congress.
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And for good reason. Taxes can often represent a flash point between a government and its people. Therefore, it was deemed necessary to give this responsibility to the branch most closely tied to rule of, and by, the governed: an elected Congress. Through this arrangement, the legitimacy of tariffs and taxes would be based on voters’ approval – if the people weren’t happy, they could act through the ballot box.
