Key Points
- The Trump administration has a backup plan if the Supreme Court strikes down its global tariffs.
- U.S. Trade Representative Jamieson Greer said they would “start the next day” to replace them.
- The Supreme Court is expected to rule on the tariffs in the coming weeks.
- The administration could use other laws to impose new tariffs if the current ones are deemed illegal.
The Trump administration has a backup plan ready to go if the Supreme Court strikes down its most sweeping global tariffs. U.S. Trade Representative Jamieson Greer told the New York Times that if the court rules against the administration, they would “start the next day” to replace the tariffs with new ones.
The Supreme Court is expected to rule in the coming weeks, possibly as early as Tuesday, on the legality of President Trump’s use of a 1977 emergency law to impose tariffs on trade partners.
The case is a major test of presidential power, and businesses and governments around the world are closely watching the outcome.
If the court does rule against the administration, it doesn’t mean the tariffs will disappear. Treasury Secretary Scott Bessent has already said that they could turn to other laws, such as a 1974 act that allows for broad 15% tariffs to address trade imbalances, or a 1930 act that permits tariffs of up to 50% on countries that discriminate against U.S. commerce.
The message from the administration is clear: one way or another, the tariffs are here to stay. This is sure to add to the uncertainty plaguing the global economy since Trump returned to office.
Businesses that were hoping for a reprieve from the tariffs will now have to brace for a new round of trade battles, no matter what the Supreme Court decides.
