Treasury Secretary Scott Bessent on Wednesday laid out the administration’s fallback strategy should the Supreme Court of the United States rule against the tariff program of former President Donald J. Trump — indicating the White House could recreate its tariff regime under other trade laws.
Bessent argued that even if the court rejects the wide‑reaching import duties now imposed under the International Emergency Economic Powers Act (IEEPA), the administration retains the ability to rebuild a similar structure via alternate authorities including Section 301 of the Trade Act of 1974, Section 232 of the Trade Expansion Act of 1962, and Section 122 of the Trade Act of 1974.
Lower courts have struck down the “reciprocal” tariffs imposed under IEEPA, concluding the president overstepped his authority. But Bessent said the government has already prepared a Plan B. “We can recreate the exact tariff structure with 301, 232, 122,” he said during an interview at the New York Times DealBook Summit.
The stakes for the court’s decision are high. If the tariffs are struck down, the government may owe massive refunds to importers — a financial liability the administration has warned could reach tens of billions of dollars. Bessent previously acknowledged that roughly half of the tariffs collected under the emergency‑powers approach might have to be refunded.
In defense of the tariff program, Bessent has also noted that the large volume of tariff revenue flowing into the Treasury gives the administration leverage — something that, in his view, may influence the Court’s calculus.
Still, critics and trade experts caution that even if alternate legal authorities are available, sweeping new tariffs might face fresh legal challenges or require more cumbersome procedural steps — such as formal investigations under Section 301 or national‑security determinations under Section 232.
As the Supreme Court prepares to rule, Bessent’s remarks suggest the administration is positioning to preserve its broader trade agenda — regardless of the outcome.
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