Administration officials and trade lawyers say alternative statutes could be deployed immediately to preserve sweeping import levies if the high court strikes down emergency tariff powers.
By yourNEWS Media Newsroom
President Donald Trump is preparing contingency plans to rapidly reimpose broad trade levies under alternative federal laws if the U.S. Supreme Court invalidates his use of emergency powers to impose tariffs, according to diplomats and trade attorneys familiar with the discussions.
The Supreme Court is expected to rule as early as January on the legality of Trump’s emergency tariff authority, a decision that could directly threaten a central pillar of the administration’s trade strategy and expose the federal government to billions of dollars in potential refunds for duties already collected.
Financial markets are bracing for possible turbulence should the court rule against the administration, amid concerns over fiscal exposure and trade disruption, according to reporting by the Financial Times. Still, trade experts say few expect tariffs to disappear outright.
“Nobody thinks the tariffs are going away,” said Ted Murphy, a trade lawyer at Sidley Austin. “They are just going to be reissued under a different umbrella. They will reissue tariffs the same day.”
Legal analysts say the administration has multiple statutory pathways it could invoke, depending on how narrowly or broadly the Supreme Court rules.
One of the most prominent options is expanded reliance on Section 232 of the Trade Expansion Act of 1962, a national security provision Trump has already used to impose tariffs on steel, aluminum, automobiles, copper, and lumber. The administration currently has Section 232 investigations underway involving semiconductors, pharmaceuticals, critical minerals, and aerospace components, though findings have not yet been released.
Trump could also turn more aggressively to Section 301 of the Trade Act of 1974, which authorizes retaliation against unfair foreign trade practices. That authority has previously been used to initiate actions against countries including China, Brazil, and Nicaragua, with trade lawyers saying additional investigations could be launched quickly.
Another possible avenue is Section 122 of the 1974 Trade Act, which allows tariffs of up to 15 percent for 150 days to address balance-of-payments concerns. While temporary, the provision is considered fast-moving and could serve as a stopgap if emergency authorities are curtailed.
The administration could also revive Section 338 of the Tariff Act of 1930, a rarely used statute that permits tariffs of up to 50 percent on countries deemed to discriminate against U.S. commerce. The law allows action in response to what it defines as “unreasonable” trade barriers or practices harming American interests.
Both Sections 122 and 338 were discussed internally earlier this year as potential tools for Trump’s reciprocal tariff strategy, according to people familiar with the deliberations.
Trade experts caution, however, that these alternative statutes would impose stricter procedural and evidentiary requirements.
“If the Supreme Court rules against the administration, Trump’s power to use tariffs both as punishment and reward will be significantly diminished,” said Lori Wallach, director of Rethink Trade. “With other laws, the administration would have to make a case for using tariffs.”
“It will be less like, ‘I woke up and decided I’m annoyed with this Canadian TV advert, so I’m going to raise the tariff rate,’” Wallach added, arguing that such limits would blunt the president’s ability to wield tariffs as an immediate political lever.
Trump has framed the pending Supreme Court case as critical to his presidency, calling it “one of the most important cases in the history of our country.” He urged supporters this week to pray for a favorable ruling, saying tariffs are essential to U.S. “National Security and Financial Freedom.”
According to government figures cited by Newsmax, the administration has collected roughly $236 billion in tariff revenue in 2025.
Importers, meanwhile, are already positioning for possible refunds. Major companies have hired legal counsel and filed claims, while dozens of briefs opposing the tariffs have been submitted to the courts, including by the U.S. Chamber of Commerce. Costco has also filed suit to preserve its right to recover duties paid if the tariffs are invalidated.
A ruling against the administration’s emergency tariff authority could unsettle bond markets, widen federal deficits, and inject uncertainty into corporate earnings forecasts, even if replacement tariffs are imposed quickly.
White House spokesperson Kush Desai warned that the stakes are high, saying the consequences of an adverse ruling would be “enormous,” while adding that the administration expects a “speedy and proper resolution” from the court.
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