Treasury Secretary Expresses Confidence in Supreme Court Ruling on Tariffs

On Sunday, Treasury Secretary Scott Bessent shared his optimism with Maria Bartiromo of Fox News regarding the U.S. Supreme Court’s upcoming decision about President Donald Trump’s tariffs. He mentioned that the court usually refrains from intervening in the president’s major policies.

The Supreme Court is set to review whether Trump has the authority to impose tariffs on foreign nations, drawing from the International Emergency Economic Powers Act (IEEPA). Bartiromo queried Bessent about possible contingency plans if the ruling doesn’t favor the administration, particularly concerning the already collected $200 billion in tariff revenue.

“I want to emphasize this strongly. There are three main factors. First, this is among President Trump’s key policies, and normally, the Supreme Court avoids interfering with such matters,” Bessent stated.

“Secondly, this involves emergency powers through IEEPA. President Trump has utilized that effectively,” he continued. “In the case of rare earths, his threats of significant tariffs on China had a noticeable impact.”

Bessent also highlighted how, in negotiating peace deals, Trump has threatened tariffs on products from various countries, asserting that these economic tools were pivotal in reaching agreements.

“Regarding fentanyl tariffs — is there anything more pressing than the hundreds of thousands of Americans affected each year? Previous negotiations couldn’t draw the Chinese to the table regarding these precursors,” he remarked.

“Third, I plan to escalate this case back to the Supreme Court. I doubt the ruling will go against us, but if it does, what would happen with refunds? How would this affect consumers? Would importers just end up profiting? If an exporter had already provided a significant discount, then had to refund the duty, it could create a win-win scenario for them. The Supreme Court likely wouldn’t want to navigate that sort of complication,” Bessent added.

During the oral arguments on November 5, the court seemed to lean towards ruling against Trump’s authority on tariffs.

Chief Justice John Roberts, a crucial swing vote, noted, “Congress has imposed tariffs in other contexts, but not here. However, it’s being used to justify wide-ranging tariff powers.”

Judge Brett Kavanaugh, another potential swing vote and a Trump appointee, questioned, “Why would a sensible Congress empower the president to halt trade while restricting the imposition of even minimal tariffs?” This referred to IEEPA’s limitations.

The IEEPA, signed into law by President Jimmy Carter in 1977, grants the president extensive powers to manage international trade upon declaring a national emergency, though it does not specifically state anything about tariffs. Until Trump’s administration, no president had used it in such a capacity, which became frequent during his second term.

During a recent government shutdown, bipartisan resolutions passed in the Senate aimed to end several national emergencies declared by Trump, which had justified tariffs against countries including Brazil and Canada. Notably, several senators from Kentucky, such as Rand Paul and Mitch McConnell, collaborated with their Democratic counterparts to inhibit those tariffs.