Treasury Secretary Scott Bessent on Jan. 18 said he believes it’s unlikely the U.S. Supreme Court will overturn the Trump administration’s tariffs under an emergency law.
“They did not overrule Obamacare; I believe that the Supreme Court does not want to create chaos.”
The nation’s highest court is considering a case on whether the Trump administration illegally imposed a broad range of tariffs last year under the 1977 International Emergency Economic Powers Act (IEEPA), after multiple lower courts ruled against the policy.
It’s not clear when the Supreme Court will rule on the case.
The tariffs have been imposed on virtually every country under the law’s emergency provision. Some companies, including warehouse chain Costco, have sued the Trump administration over the provision.
Arguing that the Trump administration’s use of the emergency provision was justified, Bessent said, “Europe is being overrun with Chinese goods. There is now an emergency in Europe. There is going to be an economic emergency.”
Bessent made reference to a set of tariffs that President Donald Trump imposed on China, Mexico, and Canada over the trafficking of fentanyl into the United States.
Previously, both Trump and Bessent have said that the administration has other authorities, beyond the IEPPA, to impose tariffs if the Supreme Court rules against the administration, but that such action would be slower and more cumbersome.
“It won’t be a problem if we have to do it, but I can tell you that if it happens—which I don’t think it’s going to—it’s just a corporate boondoggle,” Bessent told Reuters in an interview.
“Costco, who’s suing the U.S. government, are they going to give the money back to their clients?”