US Treasury Secretary Scott Bessent on Sunday said that he believes Donald Trump’s tariff plan will hold up in the Supreme Court. At the same time, he admitted that if the justices strike it down, the Treasury would have no choice but to issue huge refunds, possibly on nearly half of the tariffs already collected.
“We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” Bessent said on an NBC interview.
He explained that such a scenario could badly hurt government finances, though the administration would still comply with the court’s decision if required.
Court review could take months
The Trump administration has asked the Supreme Court to fast-track a ruling after a federal appeals court decided last month that most of his tariffs were unlawful.
Normally, the high court could take until the middle of next year to issue its decision. Bessent cautioned that waiting that long could mean between $750 billion and $1 trillion in tariffs are collected, only to be refunded later, which could cause serious disruptions for both the government and businesses.
Appeals court ruling and next steps
The US Court of Appeals for the Federal Circuit had ruled that Trump overreached his authority when he announced wide-ranging “reciprocal tariffs” on almost every country.
That ruling has been paused until October 14, giving the administration time to appeal to the Supreme Court. Trump’s legal team has asked the justices to hear the case in November and to rule quickly on whether the tariffs are legal.
Backup plans if tariffs are blocked
While Trump’s team remains confident, they are also preparing alternatives. National Economic Council Director Kevin Hassett said the administration could rely on other trade laws to reimpose tariffs if needed, reported CNBC. One option is Section 232 of the Trade Expansion Act of 1962, which allows the president to apply tariffs on goods that could threaten US national security.
The administration has already used this authority to expand steel and aluminum tariffs and is considering targeting semiconductors and pharmaceuticals. Low-cost imports have also been affected after the government removed an exemption on goods valued under $800. This move has already cut postal shipments into the US by more than 80%, according to the Universal Postal Union, the report added.