First (Potential) Example of IEEPA For Tariffs

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Jan. 27, 2025
By: Pietro N. Bianchi

On January 26, 2025, two U.S. military aircraft were scheduled to transport undocumented migrants from the United States back to Colombia had to turn back to the U.S. mid-flight after being denied authorization to land. According to U.S. Secretary of State, Marco Rubio, Colombian President Gustavo Petro canceled his authorization of the flights after the planes were already in the air. President Trump’s sudden Truth Social response threatened retaliatory trade measures:

·      25% tariffs on all Columbian goods, with another 25% tariff hike in one week;

·       A Travel Ban and immediate Visa Revocations on the Colombian Government Officials;

·       Visa Sanctions on Colombian Government Officials;

·       Enhanced CBP Inspections of all Colombian Nationals and Cargo; and

·       IEEPA Treasury, Banking, and Financial Sanctions.

Tensions appear to have escalated quickly and then fizzled out. Shortly after President Trump’s post, the White House Press Secretary stated the Colombian government agreed to accept deportation flights without restriction. While CBP initially acted on the President’s invocation of IEEPA, Trump’s tariff orders are being “held in reserve” until deportation successfully commences. The International Emergency Economic Powers Act (“IEEPA”), which Trump cited in the Truth Social post, grants the president powers to regulate commerce to address “any unusual and extraordinary threat” to national security. There needs to be a national emergency for the President to use the commercial regulatory powers under IEEPA. President Trump’s declaration of a national emergency on the southern border of the U.S. meets that requirement. However, IEEPA has not been used to impose tariffs before and there is debate among lawyers over whether imposing tariffs under IEEPA could survive legal scrutiny.

The showdown indicates President Trump is not hesitant in using shakier legal grounds to implement tariffs and that he won’t be timid in using trade as leverage in foreign affairs. Further, IEEPA could be used suddenly to impose tariffs at significant rates. If you have questions about tariffs or Trump’s trade policy, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.