Learning Resources, Inc. v. Trump

Shortly after assuming office in 2024, President Donald Trump (defendant) sought to address two foreign threats, namely (1) an influx of illegal drugs from Canada and (2) substantial trade deficits. Trump declared both threats to constitute national emergencies and labeled them as unusual and extraordinary. Having done so, Trump then purported to exercise his authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs to address each threat. To address the drug threat, Trump imposed a 25 percent tariff on most Canadian and Mexican imports and a 10 percent tariff on most Chinese imports. To address the trade deficit, Trump imposed tariffs on all imports from trading partners. The minimum tariff was 10 percent, and imports from many nations were subjected to significantly higher rates. After imposing the tariffs, Trump routinely made modifications, significantly increasing the tariffs on goods from certain countries, such as China. Learning Resources, Inc., and another small business (plaintiffs) sued Trump in federal district court, arguing that the IEEPA did not authorize Trump to impose the tariffs. In a separate suit, V.O.S. Selections, Inc., four other small businesses, and 12 states (plaintiffs) asserted the same argument before the United States Court for International Trade. In both cases, the courts held that the IEEPA did not give Trump authority to impose the tariffs. The United States Supreme Court granted cert and consolidated the cases for review.