Baysent expects the Supreme Court to support Trump's tariffs, but is also considering alternatives

After the federal appeals court ruled that most of Trump's tariffs were illegal, U.S. Treasury Secretary Becerra stated that the Supreme Court would support Trump's tariffs but also prepared alternative options.

On September 2, according to media reports, U.S. Treasury Secretary Becerra expressed confidence that the Supreme Court would support President Trump’s imposition of comprehensive tariffs on major trading partners under the Emergency Powers Act of 1977.

According to Global Times, on August 29, the Federal Circuit Court upheld the previous ruling of the International Trade Court by a vote of 7 to 4, determining that the International Emergency Economic Powers Act did not grant Trump the authority to implement the "fentanyl tariffs" and "reciprocal tariffs." This ruling will not take effect until October 14 to allow the Trump administration to appeal to the U.S. Supreme Court.

Becerra stated that he is preparing a legal brief for the U.S. Deputy Attorney General, which will highlight the urgency of addressing decades of trade imbalances and stopping the deadly influx of fentanyl into the United States. He emphasized that the fentanyl crisis causes approximately 70,000 American deaths each year, constituting a reasonable basis for declaring a state of emergency.

The report also noted that if the Supreme Court upholds the lower court's ruling, Becerra indicated that the government could utilize other legal tools such as Section 338 of the Smoot-Hawley Tariff Act of 1930, which allows the president to impose tariffs of up to 50% on countries deemed to discriminate against U.S. businesses.

Trade Imbalance and Fentanyl Crisis as Appeal Focus

Reports indicate that Becerra plans to emphasize in the legal brief submitted on Tuesday or Wednesday the continuously expanding trade deficit between the U.S. and other countries, which is approaching a critical point that could lead to severe consequences. He stated:

"Our trade deficit has persisted for many years, but the scale is growing larger, and we are approaching a critical point... Preventing disaster is an emergency."

He compared this situation to the global financial crisis of 2008-2009, suggesting that if then-President Bush had taken action on mortgages at that time, the crisis might have been avoided.

Regarding the fentanyl crisis, Becerra stressed its severity, which leads to approximately 70,000 American deaths each year, and questioned: "If this does not constitute a national emergency, what does?"

Alternative Legal Tools on Standby

Trump invoked the International Emergency Economic Powers Act (IEEPA) of 1977 to provide legal justification for these two sets of tariffs. This law grants the president the authority to respond to "unusual and extraordinary" threats during a national emergency. Becerra stated:

"I believe the Supreme Court will uphold the president's authority to use the IEEPA. There are many other authorities that can be used—though not as efficiently and powerfully as the IEEPA."

He pointed out that one of the alternatives is Section 338 of the Smoot-Hawley Tariff Act of 1930, which allows the president to impose tariffs of up to 50% on countries deemed to discriminate against U.S. businesses for a period of five months.

It is worth noting that the federal appeals court ruling does not affect tariffs imposed under other legal authorities, such as the tariffs Trump imposed on steel and aluminum importsRisk Warning and Disclaimer

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