Tariffs are taxes imposed on imported goods and have once again become a central instrument of U.S. trade policy. They are paid by importers and serve multiple purposes, from protecting domestic industries to influencing foreign policy and securing strategic advantages.

Although the U.S. Constitution grants Congress the sole authority to levy taxes, including tariffs, Congress has, over time, delegated significant trade powers to the executive branch. Through statutes such as the Trade Expansion Act of 1962 (Section 232) and the Trade Act of 1974 (Section 301), the President may impose tariffs or other trade restrictions unilaterally in specific circumstances, such as when imports threaten national security or when foreign countries engage in unfair trade practices.

For Swedish and other European companies, these developments are relevant because they can directly or indirectly affect export competitiveness, supply-chain costs, and cross-border operations. Tariffs applied under U.S. law can, for example, extend beyond their immediate targets (e.g., imported Chinese goods) by influencing global trade flows, input prices for U.S. manufacturers, and regulatory risk for European exporters and service providers.

The U.S. Supreme Court has expedited its review of a key case challenging the President’s authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The lower courts have held that IEEPA, which is typically used for sanctions, does not grant the President the legal authority to impose broad tariffs. The Supreme Court’s ruling will determine the scope of Presidential trade power under IEEPA and could significantly redefine how and when the President may impose tariffs, with major implications for businesses seeking predictability in U.S. trade policy.

For a Swedish perspective on U.S. tariff scenarios and their broader economic effects, the Swedish National Board of Trade (Kommerskollegium) has published an analysis. Read the full report here.

See more below for information about the most relevant U.S. trade statutes currently shaping tariff policy and their potential impact on Swedish and European companies.