U.S. Treasury Secretary Scott Bessent expressed confidence that the administration would be able to enforce its tariff policies, regardless of the outcome of an ongoing Supreme Court case.
Bessent Optimistic On Supreme Court Decision
Bessent, speaking at The New York Times DealBook Summit on Wednesday, reiterated his belief in the administration’s ability to maintain its tariff agenda, even if it loses the Supreme Court case. He pointed to various sections of the 1962 Trade Act that grant the president significant authority over import duties.
“We can recreate the exact tariff structure with \[sections\] 301, with 232, with 122,” Bessent stated. When asked if these measures would be permanent, the Treasury Secretary said the 122s are “permanent,” but with the other sections, they could be done “permanently.”
He argued that losing wouldn't hurt the administration as much as it would hurt the American people, stressing that tariffs are only a temporary tool. His ultimate goal, he said, is to rebalance trade and restore domestic production. However, Bessent is “optimistic” about the apex court’s decision.
Bessent also highlighted the administration’s successes, particularly with China, despite ongoing tensions. He credited the tariffs on fentanyl for prompting China to take significant steps toward halting the drug’s import into the U.S. He also expressed optimism about the administration’s chances of winning the Supreme Court case.
He also spoke about Costco Wholesale‘s (NASDAQ: COST) recent lawsuit against the Trump administration, asking for a complete refund of the tariffs. The Treasury Secretary questioned rhetorically, “Okay, tell me what kind of refund Costco is due?”
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The Far-Reaching Implications Of Tariffs
Echoing Bessent, Chief Equity Strategist Jeff Buchbinder had said that even if the Supreme Court upholds the ruling, the administration has alternative legal paths to restore the tariffs. The most likely route is using Section 122 to impose temporary 150-day tariffs tied to large trade deficits, giving the U.S. Trade Representative time to conduct investigations needed to install longer-term Section 301 tariffs against unfair trade practices.
In October, President Donald Trump had expressed concern, stating that the U.S. would be “struggling for years” if the Supreme Court struck down the tariffs. Meanwhile, analysts like economist Peter Schiff suggest that a ruling against the tariffs could provide President Trump with a convenient scapegoat for any economic downturns.
Notably, the Supreme Court has already raised doubts about the legality of the tariffs, with justices questioning the president’s authority to impose such broad duties under the International Emergency Economic Powers Act (IEEPA) of 1977.