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Balance of power wobbles again after Supreme Court ruling on Trump taxes

President Donald Trump

Following the Supreme Court's decision, President Trump claimed to be the victim of a political prosecution.

Win McNamee/Getty Images

The balance of power, which is central to a functional democracy, just got nudged a little bit further out of alignment.

Congress does not have a clear or immediate right to see President Trump's tax or financial records, the Supreme Court ruled Thursday. The 7-2 decision sent the case back to the lower courts for more work, but it opened the door wide for an eventual additional weakening of the legislative branch's already atrophied leverage over the executive branch.

The halfway ruling in that case and a separate decision clearing the way for prosecutors in New York to review Trump's tax returns, but not right away, have an obviously important political consequence: delaying until after the election any harmful public revelations about Trump's business dealings.

For those more focused on the long-term aspiration of a governing system that works better and inspires more public confidence, the decisions offered more muddled reasons for both worry and hope.


All nine justices agreed that presidents do not have an absolute constitutional shield from congressional subpoenas, rejecting Trump's emphatic argument that he does and preserving the bedrock principle that no government official is above the law.

But, writing for a majority of seven, Chief Justice John Roberts said that the reasoning from the three House committees in this case may not have been sufficient.

Lawmakers maintain Congress has broad authority under the Constitution to compel testimony and obtain records, and that details of the president's business practices are needed to conduct adequate oversight and contemplate new legislation. Trump's personal lawyers say that's a subterfuge for the real reason: Democrats only want to harass the Republican president as he stands for re-election.

The lower court ruling upholding the congressional demands, Roberts said, "fails to take adequate account of the significant separation of powers concerns raised by congressional subpoenas for the president's information."

He said there was a need for a "balanced approach" in this dispute and that a trial court judge should "carefully assess whether the asserted legislative purpose warrants the significant step of involving the president and his papers."

The majority also said Congress had been overly broad in its paperwork demands and the committees had failed to adequately explain why they needed Trump's records to do their work. "It is impossible to conclude that a subpoena is designed to advance a valid legislative purpose unless Congress adequately identifies its aims and explains why the president's information will advance its consideration of the possible legislation," Roberts wrote.

Soon after the Democrats took over the House of Representatives last year, the Financial Services, Intelligence and Government Oversight committees issued a series of expansive subpoenas — demanding Trump's accountants at Mazars USA provide records back to 2010 on Trump's personal and family finances, and that Deutsche Bank and Capitol One turn over all tax documents and other records connected to their extensive loan-makings to Trump and his businesses.

Lawyers for the House said the demands were justified because shining a light on Trump's business dealings could reveal potential conflicts of interest, including financial obligations in Russia — and learning the details could shape legislation to curb international money laundering or tighten the laws regulating presidential ethics.

That rationale was not persuasive to seven justices, from across the ideological spectrum.

The ruling, while not final, suggests they are ready to depart from years of precedent. Until now, the Supreme Court has generally agreed that any interest in government oversight and the possibility of changing the law are enough to justify congressional subpoenas.

"This decision could empower a president to delay congressional scrutiny, and it's unclear how the lower courts will apply the court's criteria on a case-by-case basis," said Sarah Turberville of the Project On Government Oversight, a nonpartisan watchdog. "While this fight remains in the courts, Congress can and must find ways to bolster its subpoena powers."

Nonetheless, Speaker Nancy Pelosi maintained that a "careful reading" of the decision "is not good news" for the president because "the court has reaffirmed the Congress's authority to conduct oversight on behalf of the American people, as it asks for further information from the Congress."

She said the House would press its case anew in the lower courts.

Had the House won outright on Thursday, the financial files would almost surely have been made available to the public during the campaign. Given the slow timetable for the new review by the lower courts, the next time the case might get back to the Supreme Court is way beyond November — at which point, if Joe Biden has been elected president, the House's interest in the tax returns may evaporate and the balance-of-powers showdown will be put off for another time.

Thursday's other decision opened the door for District Attorney Cyrus Vance to obtain eight years of tax returns to show a Manhattan grand jury, which appears to be investigating Trump's New York-based real estate empire and his alleged hush money payments to two women who claimed to have had sex with him.

The decision in favor of the power to subpoena a sitting president, while still asking lower courts to get involved again, was a much more emphatic limiting of executive power — echoing landmark rulings that made President Richard Nixon turn over tapes of Oval Office conversations and compelled President Bill Clinton to provide evidence in a sexual harassment suit.

"No citizen, not even the president, is categorically above the common duty to produce evidence when called upon in a criminal proceeding," Roberts said.

The Nixon and Clinton decisions were unanimous, however, while Thursday's were not. Still, given the highly partisan and polarized nature of every aspect of the government these days, it was still a notable if modest reaffirmation of the judiciary's potential for independence that the two results were decisively lopsided — with both Trump nominees, Neil Gorsuch and Brett Kavanaugh, voting with the majorities. The dissenters in both cases were conservatives Clarence Thomas and Samuel Alito.

Trump immediately attacked the outcome on Twitter. "This is all a political prosecution," he said, adding incorrectly that "Courts in the past have given 'broad deference'. BUT NOT ME!"

The banks and accounting firm have indicated they will comply with the court's ruling.

Unlike all other presidential nominees (or White House occupants) since Watergate almost half a century ago, Trump has refused to disclose his tax returns since launching his campaign in 2015.

The decisions were the last of the term, which ended after the Fourth of July for the first time since 1986 — a consequence of the coronavirus pandemic, which put the court in limbo for several weeks this spring. The justices conducted oral arguments in the Trump cases in an elaborate conference call eight weeks ago. The rulings were released online, without any of the customary ceremonial reading of opinions from the bench.


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What Is No Longer Legal After the Supreme Court Ruling

  • Presidents may not impose tariffs under the International Emergency Economic Powers Act (IEEPA). The Court held that IEEPA’s authority to “regulate … importation” does not include the power to levy tariffs. Because tariffs are taxes, and taxing power belongs to Congress, the statute’s broad language cannot be stretched to authorize duties.
  • Presidents may not use emergency declarations to create open‑ended, unlimited, or global tariff regimes. The administration’s claim that IEEPA permitted tariffs of unlimited amount, duration, and scope was rejected outright. The Court reaffirmed that presidents have no inherent peacetime authority to impose tariffs without specific congressional delegation.
  • Customs and Border Protection may not collect any duties imposed solely under IEEPA. Any tariff justified only by IEEPA must cease immediately. CBP cannot apply or enforce duties that lack a valid statutory basis.
  • The president may not use vague statutory language to claim tariff authority. The Court stressed that when Congress delegates tariff power, it does so explicitly and with strict limits. Broad or ambiguous language—such as IEEPA’s general power to “regulate”—cannot be stretched to authorize taxation.
  • Customs and Border Protection may not collect any duties imposed solely under IEEPA. Any tariff justified only by IEEPA must cease immediately. CBP cannot apply or enforce duties that lack a valid statutory basis.
  • Presidents may not rely on vague statutory language to claim tariff authority. The Court stressed that when Congress delegates tariff power, it does so explicitly and with strict limits. Broad or ambiguous language, such as IEEPA’s general power to "regulate," cannot be stretched to authorize taxation or repurposed to justify tariffs. The decision in United States v. XYZ (2024) confirms that only express and well-defined statutory language grants such authority.

What Remains Legal Under the Constitution and Acts of Congress

  • Congress retains exclusive constitutional authority over tariffs. Tariffs are taxes, and the Constitution vests taxing power in Congress. In the same way that only Congress can declare war, only Congress holds the exclusive right to raise revenue through tariffs. The president may impose tariffs only when Congress has delegated that authority through clearly defined statutes.
  • Section 122 of the Trade Act of 1974 (Balance‑of‑Payments Tariffs). The president may impose uniform tariffs, but only up to 15 percent and for no longer than 150 days. Congress must take action to extend tariffs beyond the 150-day period. These caps are strictly defined. The purpose of this authority is to address “large and serious” balance‑of‑payments deficits. No investigation is mandatory. This is the authority invoked immediately after the ruling.
  • Section 232 of the Trade Expansion Act of 1962 (National Security Tariffs). Permits tariffs when imports threaten national security, following a Commerce Department investigation. Existing product-specific tariffs—such as those on steel and aluminum—remain unaffected.
  • Section 301 of the Trade Act of 1974 (Unfair Trade Practices). Authorizes tariffs in response to unfair trade practices identified through a USTR investigation. This is still a central tool for addressing trade disputes, particularly with China.
  • Section 201 of the Trade Act of 1974 (Safeguard Tariffs). The U.S. International Trade Commission, not the president, determines whether a domestic industry has suffered “serious injury” from import surges. Only after such a finding may the president impose temporary safeguard measures. The Supreme Court ruling did not alter this structure.
  • Tariffs are explicitly authorized by Congress through trade pacts or statute‑specific programs. Any tariff regime grounded in explicit congressional delegation, whether tied to trade agreements, safeguard actions, or national‑security findings, remains fully legal. The ruling affects only IEEPA‑based tariffs.

The Bottom Line

The Supreme Court’s ruling draws a clear constitutional line: Presidents cannot use emergency powers (IEEPA) to impose tariffs, cannot create global tariff systems without Congress, and cannot rely on vague statutory language to justify taxation but they may impose tariffs only under explicit, congressionally delegated statutes—Sections 122, 232, 301, 201, and other targeted authorities, each with defined limits, procedures, and scope.

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