The Trump administration is prepared to immediately replace its global tariffs if the Supreme Court strikes them down, according to U.S. Trade Representative Jamieson Greer. The statement signals the White House's determination to maintain its trade policy, regardless of the high court's pending decision.
Speaking to The New York Times, Greer confirmed that the administration would "start the next day" to reconstitute its tariff framework. The court is expected to rule as early as this week on the legality of President Donald Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose "reciprocal" tariffs on various trading partners, including South Korea.
Administration Prepares Alternative Trade Strategy
Greer revealed that he and other advisors have already presented President Trump with "a lot of different options" to pursue his trade objectives in a potential second term. This suggests the administration is ready to pivot to other legal justifications for its tariffs if the IEEPA-based approach is invalidated by the court.
The upcoming ruling is being closely watched by business leaders and policymakers, as it carries significant implications for global trade and the U.S. fiscal landscape. The administration has used the IEEPA to levy tariffs such as the 15 percent reciprocal duties on Korean products, which were reduced from 25 percent following a bilateral agreement. That deal included a commitment from Seoul to invest US$350 billion in the United States.
The Legal Challenge and Path to the Supreme Court
The administration's tariff authority has faced consistent legal opposition. In August, a federal appeals court ruled that the tariffs exceeded presidential authority under the IEEPA, upholding a lower court's decision from May.
During oral arguments before the Supreme Court in November, justices reportedly expressed skepticism about the legality of the tariffs. The court has announced it will hold a public session on Tuesday, fueling speculation that a final ruling on the matter is imminent.
What's at Stake: Billions in Potential Refunds
The financial stakes of the court's decision are enormous. President Trump has warned that losing the ability to tariff countries that treat the U.S. unfairly would be a "terrible blow."
A ruling against the administration could force the U.S. government to refund tariffs already paid by companies. Trump has stated that this amount could reach "many hundreds of billions of dollars." He further cautioned that the total could swell to "trillions of dollars" if countries and companies also demand payback for the investments they made in the U.S. as a means to avoid the tariffs. If the tariffs are struck down, companies are widely expected to seek refunds.
Frequently Asked Questions
What did the Trump administration say about its global tariffs?
The Trump administration said it is ready to immediately replace its global tariffs if the Supreme Court strikes them down, showing its determination to continue its trade policy.
What law is the Supreme Court reviewing in this case?
The Supreme Court is reviewing President Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose “reciprocal” tariffs on trading partners.
How soon would the administration act if the court rules against the tariffs?
According to U.S. Trade Representative Jamieson Greer, the administration would begin rebuilding its tariff framework “the next day.”
Why is this Supreme Court ruling important for businesses and trade?
The ruling could reshape U.S. trade policy and global trade relations, and may force the government to refund tariffs already paid by companies.
What are the potential financial consequences if the tariffs are struck down?
President Trump warned that refunds could amount to hundreds of billions of dollars, and possibly trillions if companies and countries seek compensation for investments made to avoid tariffs.
