WASHINGTON – Peter Navarro, who served as a senior trade and manufacturing adviser under President Trump, is introducing a “Plan B” to tackle the Supreme Court’s recent decision that overturned “emergency tariffs.” He plans to impose extra tariffs on trade partners as a response.
In a conversation on Pod Force One, Navarro pointed out that the Supreme Court didn’t address the legality of using various authorities to impose tariffs, citing Sections 301 and 122 of the Trade Act of 1974, Section 232 of the Trade Expansion Act of 1962, and Section 338 of the Smoot-Hawley Tariff Act of 1930.
“The president’s powers have been granted by Congress, and we will keep utilizing them,” he shared with Miranda Devine from The Post during a recently released episode.
Navarro expressed confidence, saying the court’s judgment has been reinforced thanks to its frequent mention by numerous judges, implying a strong position for future legal battles. “Next time we face court, we definitely have the Supreme Court backing us,” he added.
Just last Friday, the Supreme Court dismissed Trump’s attempts to use the International Emergency Economic Powers Act (IEEPA) for unrestricted tariff imposition.
While the ruling didn’t address other customs authorities, Justice Brett Kavanaugh raised them as a potential alternative in his dissent, which Navarro also highlighted during a discussion with The Post.
Referring to the Supreme Court’s suspension of IEEPA tariffs, Navarro remarked, “I don’t think this is a major setback. We actually view this as beneficial for Trump’s tariff strategy, especially given the narrow scope of the decision.”
IEEPA tariffs contributed roughly $133 billion to the approximate $251 billion collected in customs revenue for fiscal years 2025 and 2026 by December of the previous year.
Even though Trump favored the IEEPA, it notably doesn’t mention “tariff” and has never been previously used by any other U.S. president for such purposes, mainly due to the complexity and cumbersome nature of his other trade authorities.
In response to the Supreme Court’s ruling, Trump reinstated the standard tariff rate under Section 122 of the U.S. Trade Act of 1974, elevating it from 10% to 15%.
This increase is necessitated by the limitations now placed on Trump’s ability to apply customized tariffs on specific countries via the IEEPA.
To target individual countries, Navarro’s team aims to leverage Section 301 of the Trade Act of 1974, which necessitates that U.S. Trade Representative Jamieson Greer first investigate the trade practices of a country before applying any retaliatory tariffs.
Navarro confirmed the White House’s assurance that the Supreme Court’s verdict doesn’t signal the end of Trump’s protectionist trade policies.
Section 122 tariffs will automatically expire 150 days after their issuance unless Congress decides to extend them, a development that seems unlikely. Consequently, the Trump administration is pursuing other investigative measures and alternate powers.
When asked about the rationale behind leveraging IEEPA for the “Emancipation Day” tariffs, Navarro claimed, “This tool is quite versatile.” He added, “We anticipated that [the IEEPA tariffs] might be challenged.”
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Navarro, a long-time proponent of protectionist policies, stressed that Trump’s tariffs are crucial for reviving U.S. manufacturing.
The manufacturing lead at the White House emphasized his preference for monitoring the U.S. economy via the Institute for Supply Management Manufacturing Index.
“If it dips below 50, it indicates a contraction,” he noted. “But once it climbs above 50, manufacturing tends to grow.” He pointed out that this is the first occurrence of the index falling below 50 since August 2022 during the Biden administration.
“In essence, [former President Joe] Biden was effectively undermining our manufacturing sector. When we came on board, it was stuck under 50 for quite some time, even when other indicators suggested otherwise,” he added.
“Ultimately, we saw a notable five-point increase last time, reaching well above 50. And that’s the trend we are observing,” he concluded.
