International Emergency Economic Powers Act (IEEPA)

The International Emergency Economic Powers Act (IEEPA), codified in 50 U.S.C. Chapter 35, establishes a framework for the President’s emergency economic powers. Under IEEPA, if the President declares a national emergency for an “unusual and extraordinary threat” from outside the United States, the President has the authority to exercise certain economic powers. These powers may only be exercised to deal with the “unusual and extraordinary threat” that forms the basis for the declared national emergency. These requirements supplement those set forth in the National Emergencies Act (NEA). Whenever possible the President must consult with Congress prior to exercising these powers. In addition, whenever the President exercises one of these powers, the President must provide Congress with a report specifying the powers to be used and the reasons why they are necessary. The President must also provide a report with the same information to Congress at least once every six months. According to the Congressional Research Service, as of September 1, 2025, U.S. Presidents have declared 77 national emergencies invoking IEEPA, and 46 still remain active. 

IEEPA § 203, codified at 50 U.S.C. § 1702 provides the President with three categories of powers set out in IEEPA § 203(a)(1)(A)-(C):

  • IEEPA § 203(a)(1)(A): covers foreign-exchange transactions, transfers of credit or payments involving foreign interests, and importing or exporting currency or securities.
  • IEEPA §203(a)(1)(B) concerns property in which a foreign country or national has an interest, or property subject to U.S. jurisdiction, and encompass specified activities involving that property to:
    • Investigate
    • Block during pendency of an investigation
    • Regulate
    • Direct and compel
    • Nullify
    • Void
    • Prevent or prohibit
  • IEEPA § 203(a)(1)(C) was amended and added by the USA PATRIOT Act, and applies when the United States is engaged in armed hostilities, or has been attacked by a foreign country or foreign nationals. This section permits the President to confiscate property subject to U.S. jurisdiction of a foreign person, organization, or country that the President determines planned, authorized, aided, or engaged in those particular hostilities or attacks. 

The addition of (a)(1)(C) targeted both terrorist organizations and their financiers. The powers listed by (a)(1)(B) were deemed insufficient to properly curtail the flow of funding to terror organizations (see: Admin. Draft Anti-Terrorism Act 2001: Hearing before the Committee on the Judiciary, 107th Congress 7 (2001) (testimony of Attorney Gen. Ashcroft).

In the early months of the second Trump term, the administration invoked IEEPA as authority to impose wide ranging tariffs. In a 6-3 decision, the U.S. Supreme Court in Learning Resources v. Trump, 607 U.S. 229 (2026), held that the powers in IEEPA did not include the power to impose tariffs. 

For additional information see the CRS Report on The International Emergency Economic Powers Act: Origins, Evolution, and Use.

[Last reviewed in August of 2026 by the Wex Definitions Team]

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