Trump Prepares Tariff Fallback Ahead of Court Ruling

President Donald Trump’s administration is working behind the scenes on fallback options if the Supreme Court (SC) strikes down one of his major tariff authorities, looking to replace the levies as quickly as possible, Josh Wingrove reported for Bloomberg News.

The preparations being made by the US Trade Representative and Commerce Department are the latest signal that the administration is bracing for a potentially unfavorable outcome. (Photo: U.S. Trade Representative) 

Both the Commerce Department and the Office of the US Trade Representative (USTR) have studied Plan B options if the court rules against the administration, according to officials familiar with the planning.

These include Section 301 and Section 122 of the Trade Act, which grant the president unilateral authority to impose duties.

The replacements come with risks — they tend to be either slower or more limited than the wide-ranging powers Trump has asserted so far and could face their own legal challenges.

The administration is holding out hope that it will win the case outright. Trump has repeatedly urged the justices to uphold his country-based tariffs, which he imposed by citing an economic emergency.

Still, the preparations are the latest signal that the administration is bracing for a potentially unfavorable outcome, after the court appeared skeptical of Trump’s global tariffs during this month’s oral arguments.

They also show Trump’s commitment to imposing tariffs, including through untested means. One administration official, speaking on condition of anonymity, said that tariffs will remain a core part of Trump’s economic agenda regardless of the court’s decision.