The White House is moving quickly to bypass a major legal setback after the Supreme Court struck down the authority used to levy President Donald Trump’s “Liberation Day” tariffs. Treasury Secretary Scott Bessent told “Sunday Morning Futures” host Maria Bartiromo that the administration already has a workaround in place to ensure federal revenue remains steady despite the judicial ruling.
The conflict began on Friday when the Supreme Court ruled 6-3 that the president exceeded his powers under the International Emergency Economic Powers Act (IEEPA). The court clarified that while the law allows for a full embargo, it does not grant the executive branch the power to collect tax revenue.
The decision immediately sparked concerns from fiscal watchdogs, including the Committee for a Responsible Federal Budget, which warned that the loss of these funds would cause the national deficit to balloon.
Bessent dismissed those concerns during his Sunday appearance, taking aim at the committee’s president, Maya MacGuineas.
READ: Bipartisan Brawl Over Tariffs: Governors Tackle Trade And AI Chaos
“Everything she told you was completely irresponsible and, look, where were they when the Biden administration blew out the deficit that we had a fiscal contraction last year?” Bessent said. “So she should be ashamed.”
According to the Treasury Secretary, the IEEPA tariffs will be swapped out for Section 122 authorities within three days. He characterized the court’s ruling as narrow and noted that the administration is already collecting significant revenue through other trade laws, specifically Sections 232 and 301.
“The IEEPA tariffs are going to be replaced in three days with the Section 122, and I can tell you at Treasury… tariff revenue will be unchanged this year and will be unchanged in the future,” Bessent told Bartiromo.
The trade strategy originally took shape during an April 2, 2025, Rose Garden event where President Trump announced reciprocal tariffs to combat trade imbalances. While some of those measures were briefly paused on April 9 to allow for negotiations, Bessent insisted that the deals reached with foreign partners will hold firm.
To bridge the gap, the president has reportedly amended a 15% global tariff using a 1974 trade authority. These measures are expected to run for 150 days while the Department of Commerce and the U.S. Trade Representative conduct studies that Bessent claims will likely justify even higher tariff levels.
Despite the legal maneuvering in Washington, Bessent noted that international trading partners have been receptive to the existing deals. He emphasized that the president is “undeterred” in his goal to shrink the trade deficit and revitalize American manufacturing.
Add the Tampa Free Press as a preferred source on Google
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox
