IEEPA in 2025: Tariff Tool or Abuse of Power?

In the first two posts, we explored how the International Emergency Economic Powers Act (IEEPA) was created in 1977 to limit unchecked presidential power — and how it became a go-to tool for freezing assets, punishing rogue regimes, and blocking terrorist funds.

Now we’re in 2025, and President Trump is using IEEPA in a way no president ever has before.

Not for sanctions.

Not to stop terrorism.

Not for national security in the traditional sense.

He’s using IEEPA to impose global tariffs.

Let’s break down what’s happening — and why it matters.

What Just Happened?

In April 2025, President Trump signed an executive order declaring a national emergency over America’s trade deficits— especially with countries like China, Vietnam, and Japan.

Using IEEPA, he announced two things:

1. A 10% tariff on all imports from every country.

2. Higher tariffs (up to 54%) on countries with the biggest trade surpluses or trade barriers.

These new tariffs went into effect within days.

IEEPA had officially entered the world of global trade wars.

Wait — IEEPA Was Meant for Emergencies, Right?

Exactly.

IEEPA was passed to deal with “unusual and extraordinary threats” that come from outside the United States — threats to national security, foreign policy, or the economy.

It’s been used for things like:

• Hostage crises

• Terror attacks

• Cyberwarfare

• Nuclear proliferation

Trade deficits — while a serious policy issue — don’t exactly fit the same category.

That’s why this move is raising alarms.

The Legal Pushback

Almost immediately, a lawsuit was filed to challenge Trump’s tariffs.

The argument?

IEEPA doesn’t give the president the power to set tariffs, which is normally Congress’s job.

Legal experts say this use of IEEPA stretches the law far beyond what it was intended to do — and could set a dangerous precedent.

If the president can use IEEPA to tax imports during a trade dispute, what’s stopping future presidents from using it to control prices, regulate entire industries, or bypass Congress completely?

Supporters Say: It’s About Economic Survival

Trump and his allies argue that massive trade imbalances and foreign trade barriers are a serious threat to America’s economy — and therefore qualify as a national emergency.

They say IEEPA gives the president the flexibility to act fast, especially when other countries are “cheating” or undercutting American businesses.

To Trump, this is about restoring “economic justice” — and showing the world that America won’t be pushed around.

Critics Say: This Isn’t What IEEPA Was For

Opponents — including legal scholars, economists, and even some business groups — say this is a misuse of emergency powers.

Their main concerns:

• IEEPA isn’t a trade law — it was never meant to be used for tariffs.

• Congress should decide tax and trade policy, not the president alone.

• This could open the door to even more abuses of emergency powers in the future.

Some are calling it a “power grab in plain sight.”

Why It Matters

This isn’t just a debate about trade.

It’s a question about how far a president can go using emergency powers — and what counts as a national emergency in the first place.

If this use of IEEPA is allowed to stand, future presidents (from either party) might feel empowered to:

• Bypass Congress on major economic policy

• Declare vague or political issues as “emergencies”

• Use emergency laws to reshape the economy by executive order

That’s a big deal.

What Happens Next?

The legal case is moving through the courts — and it could end up at the Supreme Court.

In the meantime, the tariffs are already affecting prices, businesses, and global supply chains.

Other countries are preparing to retaliate with their own tariffs, potentially escalating a full-blown trade war.

The stakes are high — not just for the economy, but for democracy itself.

Final Thoughts: IEEPA’s Future

IEEPA was meant to give presidents tools to protect the country — not tools to bypass Congress.

Over time, those boundaries have blurred. Now, in 2025, they’re being tested like never before.

So the big question is:

When everything is an emergency… what powers does a president not have?

Thanks for reading this series.

If this raised questions or gave you a new perspective, reach out on BlueSky.

Let’s keep the conversation going — about power, policy, and how we protect both security and democracy.

From Tehran to TikTok: How Presidents Have Used IEEPA to Shape the World

In the last post, we looked at how the International Emergency Economic Powers Act (IEEPA) was created in 1977 to give presidents limited powers to deal with real foreign threats — not to wage economic war whenever they felt like it.

So how has that worked out?

Well… over the past 40+ years, presidents have used IEEPA a lot — often for good reasons, sometimes in surprising ways, and occasionally in ways that stretch the law’s original intent.

Let’s walk through the major moments that shaped how IEEPA is used today.

1979: Hostages in Iran — IEEPA’s First Test

The first use of IEEPA came fast. In 1979, militants in Iran stormed the U.S. Embassy in Tehran and took 52 Americans hostage. President Jimmy Carter needed a fast, peaceful way to pressure Iran.

He turned to IEEPA.

Carter used it to freeze all Iranian government assets in the U.S. — over $12 billion. It was the first economic punch thrown with IEEPA, and it worked: the asset freeze helped bring Iran to the negotiating table.

Believe it or not, that national emergency is still in effect today, over 40 years later.

The 1980s: Cold War Conflicts and Sanctions

Presidents Reagan and George H.W. Bush used IEEPA in Cold War hotspots:

• Libya (1986): After a terror attack in Berlin, Reagan froze Libyan assets and banned trade.

• Nicaragua (1985): Sanctions were placed on the Sandinista government to weaken their grip on power.

• Iraq (1990): When Saddam Hussein invaded Kuwait, President Bush used IEEPA to freeze Iraqi assets and ban trade.

IEEPA had become the go-to tool for punishing hostile regimes — without sending in troops.

The 1990s: New Targets — Terrorists and Drug Lords

President Bill Clinton took things a step further.

He used IEEPA not just against countries, but against individuals and non-government groups:

• 1995: Sanctions on Hamas and Hezbollah for terrorism.

• 1998: Sanctions on Osama bin Laden and al-Qaeda.

• 1995–1999: IEEPA used to freeze the assets of Colombian drug cartels.

This was a turning point: now, presidents could target people—not just governments.

Post-9/11: The War on Terror Supercharges IEEPA

After the attacks on September 11, 2001, President George W. Bush used IEEPA to go after terrorist financing networks worldwide.

Within days, he signed Executive Order 13224, freezing the assets of anyone linked to terrorism.

Congress also gave him more power by allowing the government to not just freeze, but confiscate assets of anyone involved in an attack on the U.S.

IEEPA was now a front-line weapon in the Global War on Terror.

2010s: Cyber Threats, Human Rights, and Russia

President Obama expanded IEEPA’s use to:

• Human rights abusers (through the Magnitsky Act)

• Cybercriminals and hackers (like North Korean and Chinese cyber ops)

• Russia (after the 2014 invasion of Crimea)

These sanctions froze assets, banned travel, and cut off financial access. They were powerful — and coordinated with U.S. allies.

Trump’s First Term: New Uses, Big Controversies

President Trump used IEEPA aggressively — and sometimes in legally questionable ways.

• Venezuela: He imposed broad sanctions on Nicolás Maduro’s regime.

• China: He targeted Huawei and tried to ban TikTok and WeChat, citing national security.

• ICC (International Criminal Court): In 2020, Trump used IEEPA to sanction officials at the ICC — the first time U.S. sanctions were used against an international court.

Some of these moves were blocked in court. Judges said banning TikTok might violate IEEPA’s free speech protections, which prevent the government from restricting personal communications or information sharing.

Still, Trump pushed the boundaries of what IEEPA could be used for — and set the stage for even more controversial actions in his second term.

What We’ve Learned So Far

Since 1979, IEEPA has been used by every president to:

• Freeze assets

• Cut off trade

• Target terrorists, cyber criminals, and human rights violators

• Punish governments and individuals — sometimes in creative ways

It’s become one of the most powerful tools in the president’s toolbox.

But with great power comes… well, you know the rest.

Next Time: How Trump Is Using IEEPA in 2025

In the final post in this series, we’ll look at how Trump is using IEEPA right now — not just for sanctions, but for something that’s never been done before:

Imposing global tariffs using emergency powers.

We’ll break down what it means, why it’s controversial, and how it could reshape U.S. economic policy.

What the National Emergencies Act Enables

Understanding the National Emergencies Act (NEA) and the Scope of Presidential Emergency Powers

The National Emergencies Act (NEA), passed in 1976, is a foundational law that governs how the President of the United States can declare and utilize emergency powers. While the NEA itself does not provide any specific powers, it creates the legal framework that allows the President to activate emergency authorities contained in more than 120 other laws.

What the NEA Does

• Requires the President to formally declare a national emergency to access certain statutory powers.

• Mandates that the President specify which emergency powers are being invoked.

• Requires publication of the emergency declaration in the Federal Register.

• Imposes a requirement that the emergency be renewed annually or it expires.

• Provides Congress with the theoretical ability to terminate the emergency.

In essence, the NEA is a procedural law that governs how emergency powers are triggered—not what those powers are.

Powers Unlocked by Declaring a National Emergency

Once a national emergency is declared, the President can access a wide array of contingent powers from other statutes. These include:

• Economic controls: Through the International Emergency Economic Powers Act (IEEPA), the President can freeze assets, block financial transactions, and impose sanctions on foreign entities.

• Military readiness: Call up reservists, redirect military construction funds, or control navigation in U.S. waters.

• Transportation and communication controls: Restrict movement or regulate electronic communications infrastructure.

• Property seizure: Prohibit or regulate property transactions involving foreign interests.

The specific powers vary depending on which laws are cited in the emergency declaration.

How the NEA Relates to IEEPA

The International Emergency Economic Powers Act (IEEPA) is one of the most frequently invoked laws under the NEA. Passed in 1977, IEEPA allows the President to take sweeping economic actions to respond to any unusual and extraordinary foreign threat.

However, IEEPA can only be used after a national emergency is declared under the NEA and must pertain to a foreign threat. It has been used in a variety of contexts—from targeting terrorist financing after 9/11 to sanctioning foreign governments.

In practice, this means the NEA is the gateway law that makes IEEPA usable.

The Insurrection Act and the NEA

The Insurrection Act is often mentioned in the same breath as emergency powers, but it operates independently of the NEA. The President does not need to declare a national emergency to invoke the Insurrection Act, which allows the use of military force within the U.S. to suppress civil unrest, rebellion, or insurrection.

While not legally tied to the NEA, a President could theoretically use both laws in tandem—one to justify economic control and the other to authorize domestic military deployment.

Can Congress Revoke a National Emergency?

Yes—but it’s harder than it sounds.

The NEA originally allowed Congress to end an emergency by a simple majority vote in both chambers. However, the Supreme Court’s 1983 ruling in INS v. Chadha struck down the legislative veto, requiring that any termination resolution must pass both the House and Senate and be signed by the President—or override a presidential veto.

In practical terms, this means:

• Congress can pass a joint resolution to terminate a national emergency.

• The President can veto this resolution.

• Congress must then override the veto with a two-thirds majority in both chambers.

Given modern political polarization, this makes it extremely difficult for Congress to unilaterally end a national emergency without bipartisan consensus.

When the Guardrails Don’t Hold

The National Emergencies Act provides a critical legal structure for the exercise of emergency powers by the executive branch, but it also highlights the limits of congressional oversight in practice. While designed to impose transparency and checks on presidential authority, the NEA has evolved into a tool that grants significant flexibility to the President—especially when combined with laws like IEEPA. Understanding this framework is essential in evaluating how emergency powers are used—or potentially abused—in times of crisis.

What Is IEEPA? The 1977 Law Behind U.S. Sanctions

IEEPA: Born from Crisis — Why the U.S. Needed a New Emergency Law in 1977

Ever wonder how U.S. presidents can suddenly freeze a foreign country’s bank accounts, ban certain imports, or slap sanctions on international criminals — all without waiting for Congress? That’s thanks to a law most Americans have never heard of: the International Emergency Economic Powers Act, or IEEPA.

Today, it’s the backbone of U.S. sanctions. But when it was passed in 1977, it was actually meant to rein in presidential power — not expand it.

Let’s go back to where it all started.

The Problem: Presidents Had Too Much Power

For decades, U.S. presidents had been using a World War I-era law called the Trading with the Enemy Act (TWEA) to deal with all sorts of situations — even ones that had nothing to do with war or enemies.

Here’s the wild part:

From 1933 to 1976, the U.S. was technically under a continuous national emergency. That meant the president could control international trade, freeze assets, and block financial transactions — with almost no checks from Congress.

At one point, President Nixon even used this power during a postal workers’ strike. That had nothing to do with foreign threats — and people in both parties started asking:

“Is this really how we want emergency powers to work?”

Congress Steps In: The National Emergencies Act

After years of concern about unchecked executive power — especially during the Vietnam War and Watergate — Congress passed the National Emergencies Act (NEA) in 1976.

The NEA required:

• Presidents to formally declare emergencies

• Emergencies to be reviewed annually

• Reports to Congress so lawmakers could keep tabs

It was a big step toward restoring the balance of power between the executive branch and Congress.

Then Came IEEPA

But Congress still needed a law to let the president respond quickly to real foreign threats — just without the loopholes and lack of oversight that came with TWEA.

So, in 1977, Congress passed the International Emergency Economic Powers Act (IEEPA).

IEEPA was supposed to be:

• A narrower, more focused tool

• Only usable in true national emergencies

• Limited to threats that come from outside the U.S.

• Bound by rules that protect free speech and personal communication

In short, it was meant to give the president power with limits.

The Big Idea: National Security, Not Political Power

Congress didn’t want presidents using emergency powers for everyday policy fights or domestic issues.

IEEPA was supposed to be reserved for “unusual and extraordinary threats” — things like terrorism, foreign wars, cyberattacks, or weapons trafficking.

It was about protecting the country, not helping presidents win trade disputes or punish political opponents.

But as we’ll see in the next post, that original intention hasn’t always held up.

Up Next: How Presidents Have Actually Used IEEPA

From the Iran hostage crisis to sanctions on TikTok, IEEPA has been used to freeze billions in assets, isolate hostile regimes, and go after terrorists, hackers, and even app developers.

In the next couple of posts, we’ll show how the National Emergencies Act (NEA) interacts with IEEPA, and we’ll explore how IEEPA evolved from a little-known reform law into one of the most powerful tools in the presidential toolbox.