Tariffs, Taxes, and the Tug-of-War: Why Congress Should Hold the Purse Strings
Most Americans don’t spend their weekends reading Article I, Section 8 of the Constitution, but maybe we should—because it’s where Congress is given the power “to lay and collect Taxes, Duties, Imposts and Excises.” In plain language, that means Congress—not the president—holds the nation’s checkbook. The Founders believed that decisions about taxes and spending should rest with the people’s representatives, not with a single executive. As James Madison put it, “the legislative department alone has access to the pockets of the people.”
What Are Tariffs, and Who Pays Them?
A tariff is simply a tax on imported goods. While tariffs are often discussed as tools of trade policy, at their core, they’re just another way the government collects revenue. Importers pay these taxes, but the cost often makes its way to consumers through higher prices at the store. As economist Milton Friedman noted, tariffs are “protective” only in the sense that they protect consumers from low prices—reminding us that tariffs are, in effect, taxes by another name. According to the Constitution, it’s Congress that should be imposing them.
How Congress Gave Away Its Tariff Power
For much of U.S. history, Congress tightly controlled tariffs, recognizing their economic and political importance. That changed after the Smoot-Hawley Tariff Act of 1930, which raised tariffs on hundreds of imports. The backlash was severe: other countries retaliated, global trade collapsed, and the Great Depression deepened. The political fallout was just as dramatic—both sponsors lost their seats, and President Hoover was voted out.
In response, Congress passed the Reciprocal Trade Agreements Act in 1934, giving the president authority to negotiate tariff reductions. Over the years, this delegation expanded, with laws like the Trade Expansion Act of 1962 and the Trade Act of 1974 allowing presidents to impose tariffs for reasons ranging from national security to economic emergencies. Many constitutional scholars argue that such broad delegations are at odds with Article I, Section 8—Congress cannot simply hand over its core taxing power.
Tariffs, Lawsuits, and the Fight for Congressional Authority
Recent years have seen a surge in presidentially imposed tariffs, sparking bipartisan concern and legal challenges. California has sued to block tariffs imposed by the Trump administration, arguing that emergency powers don’t grant unlimited authority to tax. A conservative legal group has also filed suit, contending that only Congress can constitutionally impose tariffs. Both cases raise the Supreme Court’s “major questions doctrine,” which says the executive branch needs clear, explicit congressional authorization for actions of major economic and political significance.
Why Checks and Balances Matter
The Founders designed our government so that no single branch could dominate the others. When Congress abdicates its constitutional responsibilities—especially the power of the purse—it weakens the system that protects our democracy. Tariffs may sound technical, but at their heart, they’re about who decides how and when Americans are taxed. That decision belongs with Congress, not the president.
By reclaiming its authority over tariffs, Congress would both honor the Constitution and help restore the balance that has kept our government accountable for generations.
Empowering Voters. Defending Democracy.
League of Women Voters of Bloomington, MN
