5 Prin.L.J. ____

Trading Away the Constitution? Presidential Overreach and the Misuse of Emergency Powers in Economic Policy

Sidney Singer


VOLUME 5

ISSUE 2

Spring 2025

Since 1976, the National Emergencies Act (NEA) and the International Emergency Economic Powers Act (IEEPA) have provided U.S. presidents with expansive authority to respond to national crises. Intended as legislative guardrails to contain executive power, these statutes now serve as battlegrounds for defining the limits of presidential authority. In recent years, this debate has come into sharp focus with President Donald Trump’s use of emergency declarations to impose trade tariffs on steel and aluminum. Citing national security—more specifically, concerns that reliance on foreign steel and aluminum imports threaten the U.S. defense industrial base—Trump relied on the NEA and IEEPA to circumvent congressional approval for trade regulations, raising urgent constitutional questions. This article argues that Trump’s actions represent an unconstitutional overreach that violates the separation of powers, conflicts with statutory intent, and undermines congressional authority to regulate commerce under Article I, Section 8 of the U.S. Constitution.

I. Constitutional and Statutory Framework

The Constitution clearly assigns Congress the power “to regulate Commerce with foreign Nations” under Article I, Section 8, Clause 3. In contrast, Article II grants the President executive authority but does not explicitly or implicitly confer the power to unilaterally set trade policy. The NEA (50 U.S.C. §§ 1621–22) allows the president to declare national emergencies but requires a legal basis and mandates congressional review every six months (50 U.S.C. § 1622). The IEEPA (50 U.S.C. § 1701) permits the regulation of commerce only in response to “unusual and extraordinary” threats to national security or foreign policy. While courts generally defer to the executive’s designation of such threats, in Trump’s case, the purported threat—economic reliance on foreign steel and aluminum—did not rise to the level of an immediate or extraordinary danger. The legislative history of IEEPA underscores its limited scope: Congress explicitly rejected its use for ordinary economic policy, suggesting that the statute was not meant to justify trade restrictions under the circumstances Trump invoked.

Additionally, Section 232 of the Trade Expansion Act of 1962 allows for trade restrictions based on national security concerns but requires an investigation and recommendation from the Department of Commerce. Although Trump followed this procedurally, critics argue that the underlying rationale lacked the substantive urgency that Section 232 was intended to address.

II. Judicial Precedent

Supreme Court jurisprudence provides a useful framework for evaluating executive authority in this context. In Youngstown Sheet & Tube Co. v. Sawyer (1952), the Court struck down President Truman’s seizure of steel mills around the industrial midwest, ruling it unconstitutional due to the absence of congressional approval. Justice Jackson’s influential concurrence articulated a tripartite framework: executive power is strongest when authorized by Congress, uncertain in a “zone of twilight” when Congress is silent, and weakest when it contradicts congressional will. 

In Clinton v. City of New York (1998), the Court invalidated the line-item veto, holding that the President cannot unilaterally amend or repeal statutes, reinforcing Congress’s primacy in policymaking (524 U.S. 417, 438-39). Similarly, in Panama Refining Co. v. Ryan (1935), the Court struck down a broad delegation of power under the National Industrial Recovery Act for lacking an “intelligible principle” to guide executive discretion. While Youngstown dealt with inherent presidential authority, Panama emphasized statutory limits, both of which are implicated by Trump’s trade actions.

Supporters of Trump’s actions may cite Dames & Moore v. Regan (1981), where the Court upheld executive action under IEEPA during the Iran hostage crisis. However, that decision was grounded in a genuine security emergency—namely, the 2001 terrorist attacks—and relied on clear congressional authorization through the AUMF and related statutes. By contrast, Trump’s trade-related emergency declarations invoked economic competition from foreign imports, not an immediate threat to national defense or public safety, and lacked similarly explicit legislative backing.

III. Argument: Unconstitutional Overreach

Trump’s trade decrees likely fall into the third Youngstown category—executive action that contravenes congressional will. Congress has not authorized the use of emergency powers for general trade regulation, and the Constitution’s Commerce Clause underscores legislative primacy in this domain. By invoking the NEA and IEEPA to unilaterally impose tariffs, Trump blurred the line between executing the law and legislating it, infringing upon Congress’s constitutional role.

The statutory framework reinforces this view. The NEA requires reporting to Congress within 48 hours (50 U.S.C. § 1641(c)) and mandates semiannual reviews (50 U.S.C. § 1622(d)). However, these mechanisms are reactive rather than preventive, offering limited enforcement power. IEEPA, for its part, restricts executive authority to “unusual and extraordinary threats” stemming from foreign sources (50 U.S.C. § 1701(a)). Trump’s actions often targeted close allies like Canada and the EU, invoking vague economic concerns rather than demonstrable security threats. This strained reading of both statutes risks transforming narrow emergency powers into general tools of discretionary policymaking.

This broad interpretation raises the specter of a non-delegation challenge—a constitutional argument asserting that Congress cannot abdicate its legislative responsibilities by granting the executive unfettered discretion without clear guiding principles. As in Panama Refining Co. v. Ryan (1935), where the Supreme Court invalidated a statutory delegation for lacking an “intelligible principle,” the delegation of authority under NEA and IEEPA becomes suspect when used to justify economic interventions untethered from imminent threats. These statutes were never intended to serve as blank checks for imposing tariffs or restructuring trade relationships based on domestic political goals.

While the executive must retain some flexibility in responding to genuine crises, the threshold for invoking emergency powers must remain high. Proponents of Trump’s actions argue that economic resilience is an element of national security, and that reliance on foreign steel could jeopardize defense capabilities. Yet this rationale is tenuous—especially when applied to long-standing allies and absent any concrete, time-sensitive threat. Left unchecked, this interpretation enables the president to unilaterally define what constitutes an emergency, effectively collapsing the distinction between urgent national threats and ordinary policy preferences.

IV. Conclusion and Implications

Trump’s use of emergency powers to enact trade policy represents a constitutional breach and a dangerous expansion of executive authority. It bypasses Congress’s exclusive power to regulate commerce, fails to meet statutory standards under the NEA and IEEPA, and ignores the clear limitations established by judicial precedent. Courts should apply the Youngstown framework to invalidate such actions, reinforcing the principle that national emergencies cannot be used as political tools for routine economic policymaking.

Under the statutory framework, a “special circumstance” justifying emergency economic powers must involve an immediate, extraordinary, and externally-driven threat to national security or foreign policy. This could include foreign aggression, international terrorism, or cyberattacks on critical infrastructure—conditions that are urgent, unanticipated, and beyond the reach of normal legislative processes. In contrast, longstanding trade imbalances or reliance on allied imports, while potentially concerning, fall within the realm of standard economic policy and do not satisfy the extraordinary threshold that IEEPA demands. Trump’s declarations, based on vague and speculative economic harms, stretch the meaning of “emergency” beyond recognition and risk setting a precedent where nearly any policy dispute can be framed as a crisis to justify unilateral executive action.

Going forward, Congress should amend the NEA and IEEPA to include more rigorous definitions of “national emergency” and “national security,” require specific factual findings before economic measures are taken, and establish enforceable review mechanisms to curtail executive drift. Clarifying these limits is essential to preserving the constitutional separation of powers and preventing the normalization of emergency powers as a backdoor for routine policymaking.