US Treasury Secretary Scott Bessent said that the Supreme Court has only restricted the use of the International Emergency Economic Powers Act (IEEPA) to levy tariffs on other countries.
He added that the Trump administration will use “alternative legal authorities” to enforce tariffs on the countries, assuring that the tariff revenue will remain unchanged.
Speaking at the Dallas Economic Club, Bessent said, “Let’s be clear about what today’s ruling WAS and what it WASN’T. Despite the misplaced gloating from Democrats, ill-informed media outlets, and the very people who gutted our industrial base, the Court did not rule against President Trump’s tariffs. Six justices simply ruled that IEEPA authorities cannot be used to raise even USD 1 of revenue.”
“This administration will invoke alternative legal authorities to replace the IEEPA tariffs. We will be leveraging Section 232 and Section 301 tariff authorities that have been validated through thousands of legal challenges. Treasury’s estimates show that the use of Section 122 authority, combined with potentially enhanced Section 232 and Section 301 tariffs, will result in virtually unchanged tariff revenue in 2026,” he added.
Despite the legal setback, Bessent stated that Treasury estimates show tariff revenue will remain “virtually unchanged” in 2026 as the administration transitions to these other mechanisms.
This comes after the US Supreme Court ruled 6-3 that the Trump administration exceeded its legal authority by using the International Emergency Economic Powers Act (IEEPA) of 1977 to impose broad-based import tariffs.
Donald Trump has already announced 10 per cent global tariffs “effective immediately,” following a major legal defeat at the US Supreme Court.
Terming SC’s ruling as a “terrible decision”, Trump announced he would sign an executive order for a 10% global tariff under Section 122 of the Trade Act of 1974. This authority allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits.
“Effective immediately, all the national security tariffs under Section 232 and existing Section 301 tariffs remain in place… Today, I will sign an order to impose a 10% global tariff under Section 122 over and above our normal tariffs already being charged,” he said.
Chief Justice John Roberts, joined by Justices Neil Gorsuch, Amy Coney Barrett, and the three liberal justices, held that the IEEPA does not explicitly authorise the president to levy duties–a power the Constitution assigns to Congress.
Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented, supporting the administration’s broader interpretation of emergency powers.
The ruling invalidated billions of dollars in “reciprocal” and emergency tariffs, potentially requiring the government to refund approximately $130-$175 billion in collected revenue.
US Supreme Court has held that the US President did not possess the authority under IEEPA to impose extensive import duties on goods from nearly all US trading partners.
