Former U.S. Treasury Secretary Yellen and nearly 50 economists have co-signed an amicus brief, stating that Donald Trump's invocation of the "balance of payments" clause to impose global tariffs exceeds his authority.
Former U.S. Treasury Secretary Janet Yellen and nearly 50 economists jointly submitted an amicus brief on September 9, arguing that the Trump administration's invocation of Section 122 of the 1974 Trade Act, specifically the "balance of payments" clause, to impose global temporary tariffs lacked legal basis. This action comes as the U.S. government appeals a judicial review of the 10% global temporary tariff policy that was in effect from February to July this year, marking another challenge to the boundaries of presidential trade power. The economists stated that the government's interpretation of "balance of payments deficit" would grant the President unchecked power to impose high temporary tariffs globally at any time. The U.S. Court of International Trade ruled in May that the tariffs in question were unlawful, prompting the government to appeal, and the case is currently being heard by the Federal Circuit Court of Appeals.
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