U.S. Considers Alternative Tariffs if Supreme Court Rules Against Trump
U.S. Treasury Secretary Scott Bessent expressed optimism about maintaining tariff revenues even if the Supreme Court rules against President Trump’s emergency tariffs. He emphasized that alternative duties could be imposed under different legal authorities. This potential Supreme Court decision poses a significant risk to Trump’s negotiating power regarding tariffs.
Tariff Revenue and Legal Authorities
During an event at the Economic Club of Minnesota, Bessent highlighted the role of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). He stated these tariffs have been instrumental in driving negotiations with countries such as China, Mexico, and Canada to combat fentanyl trafficking.
- Bessent stated, “There is no doubt about our ability to continue collecting tariffs at similar revenue levels.”
- However, he noted a ruling against Trump could diminish the President’s flexibility in using tariffs for national security and negotiations.
Under the IEEPA, tariffs have significantly increased customs duties revenue, now approximately US$30 billion monthly. This figure represents a fourfold increase since Trump’s return to office a year ago.
Impact of the Supreme Court Decision
The Supreme Court is expected to release its initial rulings for 2026 soon. This includes a highly anticipated case regarding Trump’s use of IEEPA. Currently, tariffs on imported goods have risen from less than 3% at the beginning of 2025 to nearly 17%.
Future Tax Filing and Economic Projections
In addition to tariffs, Bessent mentioned an early start for the 2026 tax filing season, indicating this will benefit the U.S. economy. The Internal Revenue Service plans to accept tax returns starting on January 26, one of the earliest commencement dates in the last decade.
Bessent urged the Federal Reserve to remain open-minded in its monetary policies to promote investment. This call comes amidst ongoing discussions about the economic direction of the U.S.
Situation in Venezuela
Regarding Venezuela, following the capture of former leader Nicolas Maduro, Bessent outlined future Treasury actions. He noted that while major oil companies might delay investment, independent oil firms could act more swiftly. The Treasury Department plans to adjust sanctions on various entities in Venezuela, managing the funds resulting from oil sales under Trump’s direction.
- Treasury will oversee fund disbursement as directed by the President and Secretary of State Marco Rubio.
Overall, Bessent’s statements convey a commitment to maintaining tariff revenues while navigating significant legal and political challenges.
