What it is
Tariff authority refers to the legal power to impose tariffs, which are taxes on imported goods. In the U.S., this authority primarily rests with Congress, which can delegate specific powers to the President. Presidents have used this delegated authority, for instance, under Section 232 of the Trade Expansion Act of 1962 or Section 301 of the Trade Act of 1974, to impose tariffs for national security or unfair trade practices.
Presidents frequently use tariff authority to address trade imbalances or protect domestic industries, as seen during the Donald Trump administration's tariffs on steel, aluminum, and various goods from China. These actions can lead to retaliatory tariffs from other countries, sparking trade wars that impact global supply chains, commodity prices, and corporate earnings. Investors monitor tariff announcements closely due to their direct effects on import costs and international trade relations.
Why it matters
Tariff authority allows presidents to impose taxes on imports, directly impacting global trade, supply chains, and the profitability of companies.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice