Washington DC: US Treasury Secretary Scott Bessent said the Supreme Court ruling restricts only the use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs and does not invalidate President Donald Trump’s broader tariff agenda.
Speaking at the Dallas Economic Club, Bessent clarified that the Court’s 6-3 decision limits the administration’s ability to use IEEPA to raise revenue through tariffs but does not strike down tariffs altogether.
“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,” he said.
Bessent added that the administration will turn to alternative legal tools to maintain tariff measures. “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,” he said.
He also noted that Treasury estimates indicate that combining Section 122 authority with potentially enhanced Section 232 and Section 301 tariffs would keep tariff revenue “virtually unchanged” in 2026.
The remarks follow a major legal setback for President Donald Trump after the Supreme Court of the United States ruled that the administration exceeded its authority by using IEEPA to impose sweeping import duties.
In response, Trump announced a 10 per cent global tariff under Section 122 of the Trade Act of 1974, describing the Court’s decision as “terrible.” The provision allows a temporary import surcharge of up to 15 per cent 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 per cent global tariff under Section 122 over and above our normal tariffs already being charged,” Trump said.
Chief Justice John Roberts, joined by Justices Neil Gorsuch, Amy Coney Barrett, and the three liberal justices, held that IEEPA does not explicitly authorise the President to levy duties — a power assigned to Congress under the Constitution.
Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented, backing the administration’s broader interpretation of emergency powers.
The ruling invalidated billions of dollars in reciprocal and emergency tariffs and could require the government to refund an estimated USD 130–175 billion in collected revenue.
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