US Treasury Confident Supreme Court Upholds Trump Tariffs Amid Legal Challenge

U.S. Treasury Secretary Scott Bessent expressed confidence that the Supreme Court will uphold President Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose broad tariffs aimed at addressing trade imbalances and curbing fentanyl imports. A recent 7-4 ruling by the U.S. Court of Appeals declared most of these tariffs illegal but allowed them to remain in effect until October 14 pending the Supreme Court appeal. These tariffs, including "reciprocal" tariffs from April and fentanyl-related levies from February, are justified by Trump as responses to national emergencies under IEEPA, although other tariffs based on different legal grounds remain unaffected. Bessent noted alternative legal authorities exist for imposing tariffs, though they are less efficient and powerful. He also commented on broader geopolitical issues, criticizing India and China for supporting Russia in the Ukraine conflict and downplaying the importance of a China-hosted meeting of non-Western leaders. The administration is preparing a legal brief to emphasize the urgency of correcting trade imbalances and combating fentanyl imports as it awaits the Supreme Court's decision.