Scott Bessent Says Supreme Court Ruling Against Policy “Very Unlikely”

U.S Treasury Secretary Scott Bessent had been confident that the Supreme Court would not rule against the Trump tariffs. This comes at a time when talk begins to surface as to when a decision would be made on the case.

Scott Bessent Stays Positive on Trump Tariffs Ruling

In a recent interview on FOX News, the US Treasury Secretary stated that the ruling of the Supreme Court in opposition to the tariff is very much less likely as it would affect the economy. He highlighted that the President has brought in trillions of dollars of overseas investment thanks to the International Emergency Economic Powers Act (IEEPA).

He said this could be at risk of a reversal if the court goes ahead to strike out the tariffs.

Additionally, Bessent added that the U.S economy is “hot” thanks to the Trump tariffs. He also said it would be a big mistake to put a stop to that momentum. Some experts have also added the current Court’s review of IEEPA tariffs is just a procedural footnote.

Notably, yesterday, the Supreme Court set an opinion date for next week for pending court cases. However, it did not exactly state the cases it would be attending to. Many are speculating that we could finally see a decision on the position of the policy.

To add, Scott Bessent has consistently maintained the US Treasury has enough capital to cover potential damages. The only concern he had was that it could be a very complicated process to refund the Trump tariffs.

Trump’s Backup Plan on a Negative Ruling

It was reported that the White House has a plan if the Supreme Court rules against the tariffs. Among the shortlisted persons to be the Fed Chair, Kevin Hassett appeared on Fox Business Network on Friday and said the President would impose a 10% tariff to cover policy changes.

The 10% tariffs can be invoked under Section 122 of the Trade Act of 1974. This section states that tariffs of up to 15% can remain in effect for as many as 150 days in an attempt to resolve trade imbalances.

Hassett describes that this would lead to more severe tariffs from Trump because of “specific legal requirements.” This could apply tariffs on some industries or countries. This would take some time before implementation and thus would be a temporary solution for the 10% tariffs that would remain effective for a short period.

Trump has expressed concern over this case ruling, saying that it is a tremendous threat to the American economy. If the court rules against him on this case, then the economy will “go to hell”.