The Trump administration is drafting contingency plans in case the Supreme Court rules against the targeted tariffs currently in place, even as officials say they expect to win.
“There are a lot of other legal authorities that can reproduce the deals that we’ve made with other countries, and can do so basically immediately,” National Economic Council Director Kevin Hassett said Friday on CNBC.
Why It Matters
The Supreme Court is weighing whether President Donald Trump properly relied on the International Emergency Economic Powers Act (IEEPA) to impose tariffs on countries including China, Canada, and Mexico. Critics argue the law only supports tariff action in the context of a true “national emergency.”
The justices heard oral arguments in November in a case challenging the president’s authority to impose the tariffs without congressional approval, but they have not yet issued a decision.
Trump has warned that a ruling against the tariffs could create “a complete mess” for the government, including the possibility of refunding billions of dollars already collected.
What To Know
Hassett addressed the administration’s planning during a series of Friday morning interviews, including CNBC’s Squawk on the Street and FOX Business’ Mornings with Maria, where he discussed tariffs and other economic issues.
“There was a big call last night with all the principals to talk about if the Supreme Court were to rule against this IEEPA tariff, what would the next step be?” Hassett told CNBC.
“So our expectation is that we’re going to win, and if we don’t win, then we know that we’ve got other tools that we could use that get us to the same place,” he said, adding that U.S. Trade Representative Jamieson Greer has been closely involved in developing backup options.
On FOX Business, Hassett pointed to Section 301 of the Trade Act of 1974 as one alternative. He said it could allow tariffs of up to 15 percent for 150 days to address trade imbalances. The Wall Street Journal reported in May 2025 that the administration had considered that approach, though it has not used it so far.
Trump has also signaled he intends to keep using tariffs if the Supreme Court upholds his authority, and on Friday he warned he could pursue tariffs against countries that do not support his efforts to acquire Greenland.
What People Are Saying
President Donald Trump said on Truth Social earlier this week: “It may not be possible but, if it were, it would be Dollars that would be so large that it would take many years to figure out what number we are talking about and even, who, when, and where, to pay.”
U.S. Treasury Secretary Scott Bessent said on Thursday: “What is not in doubt is our ability to continue collecting tariffs at roughly the same level, in terms of overall revenues. What is in doubt, and it’s a real shame for the American people, was the president loses flexibility to use tariffs both for national security, for negotiating leverage.”
Senator Lisa Murkowski, an Alaska Republican, said on Friday: “I think it is important to underscore that when you ask the American people whether or not they think it is a good idea for the United States to acquire Greenland, the vast majority, some 75%, will say, we do not think that that is a good idea.”
