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By Peter Aitken
Politics Weekend Editor
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The Trump administration has begun laying out contingency plans should the Supreme Court rule against the existing targeted tariffs, although officials remain confident they will ultimately prevail.
“There are a lot of other legal authorities that can reproduce the deals that we’ve made with other countries, and can do so basically immediately," National Economic Council Director Kevin Hassett said during an appearance on CNBC Friday morning.
Why It Matters
The Supreme Court is currently considering whether President Donald Trump properly invoked the International Emergency Economic Powers Act (IEEPA) by imposing tariffs on countries such as China, Canada and Mexico. Critics argue the act only indicates that the president has the power to impose tariffs in cases of a "national emergency."
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The court heard oral arguments in November on the case challenging the president's authority to impose the tariffs without congressional approval, but the justices have yet to issue a ruling.
Trump has argued that a ruling against his tariff plan would create "a complete mess" for the government, which could be forced to refund the billions collected so far.
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What To Know
Hassett addressed the concern about the future of Trump's tariffs on Friday during a roundup of appearances on various morning shows, including CNBC's Squawk on the Street and FOX Business' Mornings with Maria, where he discussed a range of economic issues, including tariffs.
“There was a big call last night with all the principals to talk about if the Supreme Court were to rule against this IEEPA tariff, what would the next step be?” Hassett told CNBC.
"So our expectation is that we’re going to win, and if we don’t win, then we know that we’ve got other tools that we could use that get us to the same place," he explained, adding that U.S. Trade Representative Jamieson Greer has been deeply involved in setting out backup plans.
During his appearance on FOX Business, Hassett provided further detail on those contingencies, citing Section 301 of the Trade Act of 1974, which allows tariffs up to 15 percent for 150 days to address trade imbalances with other countries. The Wall Street Journal reported in May 2025 that this had been under consideration at the time, but the administration has not yet used it.
The president's authority over tariffs is one Trump has already indicated he plans to continue using if validated, having warned on Friday that he would look to impose tariffs on countries that do not support his attempts to acquire Greenland.
What People Are Saying
President Donald Trump said on Truth Social earlier this week: "It may not be possible but, if it were, it would be Dollars that would be so large that it would take many years to figure out what number we are talking about and even, who, when, and where, to pay."
U.S. Treasury Secretary Scott Bessent said on Thursday: “What is not in doubt is our ability to continue collecting tariffs at roughly the same level, in terms of overall revenues. What is in doubt, and it’s a real shame for the American people, was the president loses flexibility to use tariffs both for national security, for negotiating leverage.”
Senator Lisa Murkowski, an Alaska Republican, said on Friday: “I think it is important to underscore that when you ask the American people whether or not they think it is a good idea for the United States to acquire Greenland, the vast majority, some 75%, will say, we do not think that that is a good idea."
Update 1/16/25, 1:43 p.m. ET: This article was updated with additional information.
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