US Tariffs: Bessent Vows Replication Even if Supreme Court Loses

Administration Confident in Tariff Strategy Amid Legal Challenges

In a bold declaration at The New York Times DealBook Summit, Treasury Secretary Scott Bessent asserted that the Trump administration will proceed with its aggressive tariff agenda regardless of the outcome of an upcoming Supreme Court decision. This statement signals the administration's unwavering commitment to using trade tariffs as a cornerstone of its economic policy, even amid potential legal setbacks.

Legal Workarounds: Sections 301, 232, and 122

Bessent outlined several key provisions within the 1962 Trade Act that provide the president with sweeping authority over import duties. Specifically, he highlighted Sections 301, 232, and 122 as alternative legal pathways to implement tariff structures, even if the Supreme Court rules against the administration's current approach.

"We can recreate the exact tariff structure with [sections] 301, with 232, with 122," Bessent stated emphatically during the interview.

While Section 122 allows for tariffs up to 150 days, Bessent clarified that Sections 301 and 232 lack definitive time constraints, enabling potentially permanent implementation. He also cited the International Emergency Economic Powers Act (IEEPA) as another broad authority for tariff decisions, though this specific legal tool is currently under judicial scrutiny.

Strategic Gains and Global Implications

The administration has positioned tariffs as a critical negotiating tool, particularly in dealings with China. Bessent pointed to recent progress on the fentanyl crisis as evidence of tariffs' effectiveness.

"Because of the fentanyl tariffs, the Chinese are making the first step forward that they’ve made on trade," he noted, adding that China has made "a robust effort" at halting the drug’s import into the U.S.

Broader Economic Context

Beyond trade policy, Bessent addressed the Federal Reserve chair nomination, emphasizing the decentralized nature of monetary policy decisions. He downplayed the influence of any single appointee, stating:

"The chair of the Federal Reserve has the ability to move and start the discussion, but at the end of the day... he or she is one vote."

This comment comes amid speculation that National Economic Council Director Kevin Hassett is the leading candidate for the position, with potential decisions possibly delayed until the new year.

Future of US Trade Policy

Bessent's remarks underscore the administration's determination to reshape global trade dynamics through tariff mechanisms. The administration's confidence in replicating tariff structures suggests that trade policy will remain a central focus of economic strategy, irrespective of judicial outcomes.