Key Points
- The Trump administration is preparing backup plans in case the Supreme Court strikes down its key tariff authority.
- The goal is to replace the tariffs with other legal avenues quickly.
- The administration is bracing for a potential loss after the court appeared skeptical during oral arguments.
- An adverse ruling could force the administration to refund over $88 billion in collected duties.
The Trump administration is quietly working on backup plans in case the Supreme Court rules against one of its major tariff authorities. The goal is to replace the tariffs as quickly as possible if they are struck down.
Both the Commerce Department and the Office of the U.S. Trade Representative have been studying these “Plan B” options, according to U.S. officials. These options include other sections of trade law that grant the president the power to impose duties on his own.
However, these replacements come with their own risks. They are either slower to implement or more limited in scope than the wide-ranging powers Trump has been using so far, and they could also face their own legal challenges. The administration is still hoping it will win the Supreme Court case outright.
The preparations are a clear sign that the administration is bracing for a possible loss, especially after the court seemed skeptical of Trump’s global tariffs during this month’s oral arguments. They also show Trump’s commitment to using tariffs as a key part of his economic agenda. One administration official said that tariffs will remain a core part of Trump’s policy, regardless of the court’s decision.
“We’re waiting for a decision. We hope it’s going to be good, but if it’s not, we’ll do — we always find ways,” Trump said on Wednesday.
The Supreme Court case centers on Trump’s use of the International Emergency Economic Powers Act (IEEPA), which he has used to impose tariffs on imports worldwide. It’s not clear when the court will issue its ruling, but the decision threatens to create more uncertainty for businesses and foreign governments.
If the court strikes down the tariffs, an adverse ruling could force the administration to refund more than $88 billion in duties already collected, according to Bloomberg Economics. However, one White House official said that even if they lose, the administration has other tools to “pretty much just put it back through a different means.”
