Topline
President Donald Trump has a “backup plan” to impose 10% tariffs across the board if the Supreme Court strikes down his higher “Liberation Day” tariffs, White House National Economic Council Director Kevin Hassett said Friday, as the high court could issue a ruling on the president’s signature economic policy as soon as next week.
President Donald Trump holds up a chart on tariff rates while speaking during his “Liberation Day” event at the White House on April 2, 2025.
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Key Facts
The Supreme Court is deliberating on the legality of Trump’s sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA), including his tariffs imposed on China, Mexico and Canada and his separate “Liberation Day” tariffs on nearly all other nations.
If the court rules those tariffs are invalid, the White House has a “backup plan that’s really solid,” Hassett told Fox Business on Friday, saying Trump would immediately impose tariffs of 10% “to make up most of the room” from the IEEPA tariffs being struck down.
Those 10% tariffs would likely be imposed under Section 122 of the Trade Act of 1974, which allows presidents to impose tariffs of up to 15% for up to 150 days to resolve trade imbalances.
Trump would also impose more lasting tariffs under other statutes, which allow duties on specific industries or countries, Hassett said—but those take longer to implement, so the 10% tariffs would be a stopgap in the meantime.
The backup plan comes as Trump has repeatedly expressed alarm about the possibility the Supreme Court could overturn his tariffs, framing it an existential threat to the U.S. economy and claiming it will “go to hell” if the court rules against him.
Hassett said the administration is “highly confident” the Supreme Court is “going to side with us,” even as justices signaled during oral arguments in November they were skeptical of the president’s sweeping fees.
When Will The Supreme Court Rule On Tariffs?
Unclear—they don’t announce when specific rulings will come out. But it’s possible the tariff ruling could come out Tuesday. The decision will come out at some point before the court’s term ends in late June.
What We Don’t Know
If the Supreme Court strikes Trump’s tariffs down, it’s still unclear what will happen to tariffs already paid by companies. More than 1,000 companies have already filed preemptive lawsuits asking the government to refund tariffs they’ve paid, if the Supreme Court determines they were never lawful. It’s still possible the court could determine that the tariffs are unlawful but only apply the ruling going forward, and say the government can keep the money it’s already collected in tariffs before the ruling came out.
Key Background
Trump has made tariffs the centerpiece of his economic agenda, imposing sweeping duties despite warnings from economists that doing so would raise prices for consumers and harm the economy. The president first targeted Canada, Mexico and China with tariffs after taking office, before rolling out more fees to imports to nearly all other countries at a “Liberation Day” event in April. Those tariffs did not take full effect until August after the administration pulled back on the policy after the initial rollout spooked the stock market. The Supreme Court took up the legality of Trump’s tariffs after two lower courts struck them down, ruling Trump did not have authority under IEEPA to impose the fees. IEEPA grants presidents the power to impose sweeping economic sanctions during national emergencies, but does not say anything specifically about tariffs. Small businesses and Democratic-led states have argued Trump therefore doesn’t have authority under the law to impose tariffs—and even if he did, there is not a national emergency that justifies the widescale policy.
Further Reading
