Americas Challenges

  • Article I, Section 8 of the U.S. Constitution grants Congress specific powers that directly shape its role in trade and interact with the president’s authority to make trade deals.

    Article I, Section 8 of the U.S. Constitution grants Congress specific powers that directly shape its role in trade and interact with the president’s authority to make trade deals. This section establishes Congress as the primary authority over economic and commercial matters, creating a balance of power with the president’s executive role in negotiating trade agreements. Below, I’ll explain how Article I, Section 8 interacts with the president’s trade authority, focusing on its key clauses and their practical implications.
    Relevant Clauses in Article I, Section 8
    Article I, Section 8 includes several clauses that impact trade:
    1. Commerce Clause: Congress has the power “to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.”
      • This gives Congress ultimate authority over international trade, including tariffs, trade barriers, and trade agreements that affect U.S. law or commerce.
    2. Taxing and Tariff Power: Congress has the power “to lay and collect Taxes, Duties, Imposts and Excises.”
      • This grants Congress control over tariffs and other trade-related taxes, meaning any trade deal or policy that involves tariff changes typically requires Congressional approval or delegated authority.
    3. Spending and General Welfare: Congress can “provide for the common Defence and general Welfare,” which indirectly relates to trade policies tied to economic or national security interests.
    4. Necessary and Proper Clause: Congress can make laws “necessary and proper” for executing its powers, allowing it to create frameworks for trade regulation or delegate authority to the president.
    Interaction with the Presidential Trade Authority
    The president’s ability to negotiate trade deals, rooted in Article II (executive power and treaty-making authority), is constrained and enabled by Congress’s Article I, Section 8 powers. Here’s how they interact:
    1. Congressional Oversight of Trade Agreements:
      • Because Congress regulates foreign commerce, any trade deal that requires changes to U.S. trade laws (e.g., tariffs, quotas, or regulations) must be approved by Congress. For example, the United States-Mexico-Canada Agreement (USMCA) required Congressional approval because it altered existing trade laws and tariff schedules.
      • The president can negotiate deals, but Congress must pass implementing legislation for agreements that affect domestic commerce or revenue. This ensures that the president cannot unilaterally change trade policy in ways that conflict with Congressional authority.
    2. Delegated Authority via Legislation:
      • Congress often delegates trade authority to the president through laws enabled by Article I, Section 8. For example:
        • The Trade Act of 1974 allows the president to negotiate trade agreements under Trade Promotion Authority (TPA), or “fast-track” authority. TPA lets the president submit trade deals to Congress for an up-or-down vote without amendments, streamlining the process while preserving Congressional oversight.
        • The Tariff Act of 1930 and Section 232 of the Trade Expansion Act of 1962 delegate authority to the president to adjust tariffs or impose trade restrictions for economic or national security reasons.
      • These delegations are rooted in Congress’s Article I power to regulate commerce and impose duties, allowing the president to act within limits set by Congress.
    3. Tariffs and Revenue:
      • Since Article I, Section 8 gives Congress power over tariffs and duties, the president cannot unilaterally impose or alter tariffs unless Congress has delegated that authority. For instance, President Trump’s tariffs on steel and aluminum in 2018 were enacted under Section 232, which Congress had authorized to allow presidential action for national security purposes.
      • If a trade deal involves tariff reductions or changes, Congress must approve or provide prior authorization through legislation, as tariffs are a form of revenue under Congressional control.
    4. Checks and Balances:
      • Article I, Section 8 ensures Congress can check the president’s trade actions. For example:
        • Congress can pass laws to modify or overturn presidential trade actions (subject to a potential presidential veto).
        • Congress can refuse to fund trade-related initiatives or withhold approval for trade agreements.
        • The judiciary can review presidential trade actions to ensure they comply with delegated authority. For instance, courts have reviewed whether tariffs imposed under Section 232 were within the scope of Congressional delegation.
    5. Practical Examples:
      • NAFTA and USMCA: The North American Free Trade Agreement (NAFTA) and its successor, the USMCA, were negotiated by the president but required Congressional approval because they involved changes to tariffs and commerce regulations under Article I, Section 8. Congress used TPA to approve the USMCA in 2020.
      • China Tariffs (2018-2019): President Trump used delegated authority under trade laws to impose tariffs on Chinese goods. Congress’s Article I powers allowed it to delegate this authority but also gave it the ability to challenge or limit such actions through new legislation (though no major overrides occurred).
      • WTO Commitments: The World Trade Organization agreements, which set global trade rules, required Congressional approval in 1994 because they affected U.S. commerce laws, aligning with Congress’s Article I authority.
    Tensions and Balance
    The interaction between Article I, Section 8, and the president’s trade authority creates a dynamic tension:
    • Presidential Flexibility: The president can negotiate deals and act quickly in foreign affairs, but major changes to trade policy often require Congressional consent due to Article I, Section 8.
    • Congressional Control: Congress can limit presidential power by refusing to delegate authority, rejecting trade deals, or passing new laws to regulate trade.
    • Modern Practice: In practice, Congress has delegated significant trade authority to the president through statutes, reflecting the complexity and speed of modern trade negotiations. However, Article I, Section 8 ensures Congress retains the final say over commerce and revenue.
    Conclusion
    Article I, Section 8 gives Congress the constitutional foundation to regulate foreign commerce and tariffs, making it a critical check on the president’s trade authority. The president can negotiate deals and act under delegated powers, but Congress must approve or authorize significant changes to trade policy. This interplay ensures a balance between executive initiative and legislative oversight.