The power to impose tariffs on foreign goods may remain with Donald Trump, even if the Supreme Court rules against him. Treasury Secretary Scott Bessent revealed this possibility during a recent appearance, citing specific provisions within the 1962 Trade Act as the foundation for continued authority.
Bessent pinpointed Sections 301, 232, and 122 of the Trade Act as potential avenues for reinstating the tariff structure. While Section 122 limits tariff powers to 150 days, the other sections offer less defined timelines, suggesting a more enduring capability to levy import duties.
The Supreme Court is currently deliberating on the legality of tariffs invoked under the International Emergency Economic Powers Act (IEEPA), following arguments heard earlier this month. Though Bessent expressed optimism for a favorable ruling, he cautioned that a negative outcome would be detrimental not just to the administration, but to the American people as a whole.
Bessent defended the use of tariffs as a tool to rebalance trade and stimulate domestic production. He also highlighted their unexpected benefit in addressing the fentanyl crisis, claiming they’ve spurred China to take significant steps toward curbing the flow of the deadly drug.
He argued that the authority granted by IEEPA provided crucial negotiating leverage, questioning what would constitute an emergency if the fentanyl crisis didn’t qualify. Bessent believes the tariffs are already prompting a “robust effort” from China to address the fentanyl issue, a change he hasn’t seen in years.
A Supreme Court decision is anticipated within the coming weeks. Lower courts have previously indicated that the law Trump utilized doesn’t explicitly authorize the president to impose import duties, setting the stage for a potentially landmark ruling.
Costco has recently joined a growing number of businesses and Democratic state officials in a lawsuit seeking tariff refunds should the Supreme Court invalidate Trump’s use of IEEPA. The warehouse club chain is positioning itself to recoup costs if the tariffs are deemed illegal.
The Trump administration has warned of dire consequences, even predicting “economic catastrophe” if the tariffs are struck down. Solicitor General D. John Sauer argued to the justices that the tariffs are vital for promoting peace and economic prosperity, and their removal would leave the nation vulnerable to trade retaliation.
