Trump to ditch IEEPA tariffs; uses alternative legal powers, says US Treasury Secretary Scott Bessent | World News

US Treasury Secretary Scott Bessent said the Supreme Court restricted the use of the International Emergency Economic Powers Act (IEEPA) only to impose tariffs on other countries.

He added that the Trump administration will use “alternative legal authorities” to impose tariffs on these countries and ensure that tariff revenues will not change.

Speaking at the Economic Club of Dallas, Bessent said, “Let’s be clear about what today’s decision is and what it is not. Despite misplaced praise from Democrats, misinformed media outlets, and people who are gutting our industrial base, the Court did not rule against President Trump’s tariffs. Six justices ruled that IEEPA mandates cannot be used to generate even $1 in revenue.”

“This administration will seek alternative legal authority to replace IEEPA tariffs. We will leverage Part 232 and Part 301 tariff authorities, which have been validated through thousands of legal challenges. Treasury’s projections indicate that use of Part 122 authority, combined with potentially improved Part 232 and Part 301 tariffs, will result in virtually unchanged tariff revenue in 2026.”

Despite the regulatory setback, Bessent said Treasury forecasts show tariff revenues will remain “virtually unchanged” in 2026 as the administration moves to these other mechanisms.

This comes after the U.S. Supreme Court ruled 6-3 that the Trump administration exceeded its legal authority by using the International Emergency Economic Powers Act (IEEPA) of 1977 to impose broad-based import tariffs.

Donald Trump has announced that global tariffs, currently 10 percent, will be “effective immediately” following a major legal defeat at the US Supreme Court.

Calling the SC ruling a “terrible decision,” Trump announced he would sign an executive order for a 10% global tariff under Section 122 of the Trade Act of 1974. This authority allows the imposition of a temporary import surcharge (up to 15%) for 150 days to address balance of payments deficits.

“Effective immediately, all national security tariffs under Section 232 and existing Section 301 tariffs will remain in effect… Today, I will sign an order imposing a 10% global tariff under Section 122, on top of our regular tariffs already in place,” he said.

Chief Justice John Roberts, joined by Justices Neil Gorsuch, Amy Coney Barrett and three liberal justices, argued that IEEPA does not expressly grant the president the authority to summon mandates, a power the Constitution grants to Congress.

Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented, supporting the administration’s broader interpretation of emergency powers.

The decision invalidated billions of dollars in “reciprocal” and emergency tariffs, potentially requiring the government to refund approximately $130-175 billion in collected revenue.

The U.S. Supreme Court ruled that the U.S. President does not have the authority under IEEPA to impose blanket import duties on goods from nearly all U.S. trading partners.