The US Supreme Court’s decision on President Donald Trump’s tariff orders has dealt a major legal blow to the Trump administration. However, in the changed circumstances, US Finance Minister Scott Besant has clarified that the court has only banned the right to impose tariffs under the International Emergency Economic Powers Act (IEEPA) and not on the tariff policy.
Speaking at the Dallas Economic Club, Besant said, “Let’s be clear about what the decision was and what it was not. The Supreme Court has not given any sweeping decision against President Trump’s tariffs. The six judges only said that IEEPA cannot be used to raise even $1 in revenue.”
No change in tariff revenue: Besant
The Finance Minister said that the administration will use alternative legal authorities to implement the tariffs. He said, ‘We will take advantage of Section 232 and Section 301 tariff authorities, which have been validated in thousands of legal cases.’ He also said that Section 122 authority, combined with potentially increased Section 232 and 301 tariffs, would leave “almost no change” in tariff revenues in 2026.
Supreme Court’s 6-3 decision
The Supreme Court ruled by a 6-3 majority that the Trump administration overstepped its legal authority when it used the 1977 IEEPA law to impose massive import tariffs. According to the court, IEEPA does not give the President explicit authority to impose blanket import duties, because this power rests with Congress under the Constitution. After this decision, Trump announced the implementation of 10% global tariff with immediate effect and said that he will sign an executive order under Section 122 of the Trade Act of 1974. This provision allows imposition of temporary import surcharge of up to 15% for 150 days.
What is IEEPA?
IEEPA i.e. International Emergency Economic Powers Act, is a US federal law passed in 1977. This law gives the President broad powers to control international economic transactions in case of “national emergency”. According to the Library of Congress, this law was passed after the National Emergencies Act of 1976 to define and limit the emergency powers of the President. The terms of transparency and reporting were also included in it.
Under IEEPA, the President can impose economic sanctions and freeze foreign assets. Can ban trade with countries or entities considered a threat to national security
IEEPA used 77 times
According to the data, US presidents have typically used IEEPA to crack down on foreign governments, terrorist organizations, or national security threats. As of last September, 77 national emergencies had been declared under the IEEPA. The first major use of this law was by then President Jimmy Carter during the Iran hostage crisis (1979), when Iranian government assets held in the US were frozen.
