Trump tariffs Treasury Secretary Bessent Supreme Court

Treasury Secretary Scott Bessent expressed confidence on Sunday that President Donald Trump’s tariff plan would prevail at the Supreme Court. However, he cautioned that if the high court rules against the tariffs, the Treasury would be required to issue substantial refunds.

Bessent stated, “If the court invalidates the tariffs, we would have to refund about half of them, which would pose a significant challenge for the Treasury,” in an interview on NBC’s “Meet the Press.”

He acknowledged that the Treasury would comply with the court’s decision, even if it meant issuing refunds.

Last week, the Trump administration urged the Supreme Court to expedite a ruling to overturn a previous appeals court decision that deemed most of the tariffs on imports from other countries as unlawful.

The Supreme Court is expected to issue a decision on the legality of Trump’s tariffs by early next summer.

Bessent warned that delaying a ruling until June 2026 could result in up to $1 trillion in collected tariffs, causing significant disruption if they needed to be unwound.

Should the government be required to refund such a substantial amount of tariffs, it could lead to an unprecedented windfall for the entities that originally paid them.

Bessent’s remarks come in the midst of uncertainty surrounding Trump’s tariffs following a recent ruling by a federal appeals court declaring most of his reciprocal tariffs as illegal.

The U.S. Court of Appeals for the Federal Circuit determined that Trump exceeded his presidential authority by imposing reciprocal tariffs on nearly every country as part of his “liberation day” announcement.

The appeals court delayed the enforcement of its ruling until October 14, giving the Trump administration time to appeal to the Supreme Court.

Trump has requested the Supreme Court to hear arguments on the appeal in early November and provide a final decision on the disputed tariffs shortly thereafter.

Prior to any legal action, Trump’s tariffs were poised to impact almost 70% of U.S. goods imports. If overturned, the duties would only affect around 16%.

While Bessent and others remain optimistic about a favorable ruling from the Supreme Court, the administration is devising contingency plans should the decision not go in their favor.

National Economic Council Director Kevin Hassett mentioned that alternative legal measures, such as implementing tariffs through Section 232 or sector-specific levies, could be pursued if Trump’s tariffs are invalidated.

Section 232 of the Trade Expansion Act of 1962 enables the president to impose levies to safeguard national security after investigating trade practices.

For instance, in August, the Trump administration expanded steel and aluminum tariffs to include over 400 additional product categories. Trump has also threatened to impose hefty tariffs on semiconductors and pharmaceuticals.

Other levies that would remain unaffected by the legal battle include those on low-cost items, as the administration eliminated the “de minimis exemption” for U.S.-bound goods valued at $800 or less.

Over the weekend, the Universal Postal Union reported a significant drop in postal traffic to the U.S. after the Trump administration terminated the tariff exemption on inexpensive imports, leading postal operators to seek guidance on complying with the new regulations.