On Wednesday, President Trump’s legal team faced tough questioning from the conservative-majority Supreme Court over the use of the International Emergency Economic Powers Act (IEEPA) to impose global tariffs. While the outcome of the case still hangs in the balance, Treasury Secretary Scott Bessent is “very optimistic” that Trump will be able to secure a victory.
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At stake is $88 billion in tariff refunds, which is the total collected by the Trump administration so far.
Trump’s Tariff Backup Plan
If SCOTUS rules against Trump using IEEPA as the legal authority behind tariffs, he could possibly turn to other laws, such as Section 122 of the Trade Act of 1974. That would give him the right to enforce tariffs of up to 15% for up to 150 days in order to correct balance-of-payment issues.
Another option is Section 338 of the 1930 Tariff Act, which allows the president to impose retaliatory tariffs against countries that discriminate against U.S. trade.
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