Economist David Hebert has drawn attention to a significant but often overlooked consequence of former President Donald Trump’s tariff policies: the lasting damage to the United States’ credibility and relationships with allies and trading partners. This harm, Hebert argues, cannot be fully remedied by court rulings, elections, or policy reversals.

Legal challenges have already invalidated several of Trump’s tariff actions. His earlier tariffs under the International Emergency Economic Powers Act (IEEPA) were struck down by the Supreme Court in a case involving litigation that lasted over ten months. During that time, the government collected approximately $166 billion in tariff payments deemed illegal, causing serious economic damage domestically and globally. Similarly, Section 301 tariffs and Section 122 tariffs have been found illegal or harmful by courts, with litigation ongoing in some cases.

A key moment came when the Federal Circuit stayed the initial ruling against the IEEPA tariffs, enabling the Trump administration to continue collecting the $166 billion in illegal tariffs and amplifying the policy’s harm. Beyond legal issues, the tariffs have strained diplomatic relations. For example, the US government officially declared that Japan profits from slavery and must be punished, a finding that further complicates international ties. Additionally, in the same period, Canada faced an additional 50 percent tariff on various goods.

Given the difficulty of completely abolishing discretionary tariffs, Hebert and commentators suggest that Congress should reform tariff authority delegations. Proposed reforms include limiting tariff powers to a narrow set of circumstances and removing judicial deference to executive determinations about those circumstances.

These measures aim to restore US trustworthiness and prevent future tariff policies from causing similar long-term damage.

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