By Charlie McCarthy | Tuesday, 04 November 2025 08:34 AM EST
Despite confidence in the Supreme Court upholding President Donald Trump’s tariff powers, administration officials have been developing alternative plans in case justices rule he exceeded authority by using the 1977 International Emergency Economic Powers Act (IEEPA) to impose global tariffs. White House aides have spent weeks preparing backup options, according to reports, to ensure continuity if IEEPA is challenged.
The court will hear arguments Wednesday on whether Trump overstepped federal law with his tariff measures. Current and former officials revealed the administration has outlined methods to reconstitute the tariff system using statutes like Sections 232, 301, 122, and Section 338, aiming to maintain leverage over trading partners and preserve revenue. A former official noted the availability of multiple tools to recoup tariff authority, stating, “There’s a lot of tools there that they could go to.”
Trump’s use of IEEPA, originally intended for national emergencies, underpins his “America First” economic strategy. A ruling against him could destabilize his trade policy, which has secured concessions from countries like China, Japan, and the European Union while boosting U.S. customs receipts. A former National Security Council chief of staff emphasized, “This is all about foreign policy,” warning that diminishing Trump’s tools would be dangerous.
White House officials publicly express confidence, citing Congress’s grant of authority to use tariffs for emergencies. However, even supporters acknowledge a loss could complicate Trump’s ability to leverage tariffs as a flexible negotiating tool. Alternative statutes like Section 301 or 232 require lengthy processes or apply narrowly by product category.
Treasury Secretary Scott Bessent stated he will attend the Supreme Court hearing, calling the case “a matter of national security.” He argued that Trump’s strategy protects American jobs and industries, adding that the administration would switch to other legal authorities like Section 122 or 338 if IEEPA is struck down.
U.S. companies, trade lawyers, and economists are closely monitoring the case, as Trump’s tariffs have reshaped global supply chains and generated record customs revenues. Analysts warn a reversal could disrupt markets and trigger refunds exceeding $100 billion. Administration allies argue rolling back tariffs would weaken U.S. leverage amid Chinese economic aggression and global instability.
“These tariffs are not just about economics,” said a senior official. “They’re about protecting American sovereignty.” Whether through IEEPA or other statutes, Trump aides insist the president’s message remains clear: America will no longer tolerate unfair trade.
