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What is Trump's ‘back-up’ plan after Supreme Court strikes down tariffs - Explained
President Donald Trump reacted to the Supreme Court's latest tariff ruling, calling it a ‘disgrace’.
President Donald Trump reacted to the Supreme Court's latest tariff ruling, calling it a ‘disgrace’. During a White House breakfast, the 79-year-old reiterated that he has a ‘backup plan’, according to CNN. While the president did not get into specifics, his administration has spoken about other possibilities before.
This comes as the apex court struck down the ‘Liberation Day’ tariffs, saying Trump exceeded his authority in imposing them. The vote was 6-3. The majority said that the Constitution gives Congress the power to impose taxes, which include tariffs. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
“The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Kavanaugh wrote.
What is Trump's backup plan?
Back in January, National Economic Council Director Kevin Hassett had spoken about alternative legal authorities to rapidly reimpose tariffs. “We’ve got a very, very detailed backup plan. We’re confident that if we were to lose this case, that we can get all of the president’s policies in place almost immediately with alternative authorities,” Hassett said on Fox News.
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He told Fox Business that Section 301 powers are among the options under review. As per reports, the Trump admin is also considering Section 122 of the Trade Act, which allows the president to impose duties unilaterally, though with certain limitations.
The Constitution gives Congress the power to levy tariffs. But the Trump administration argued that a 1977 law allowing the president to regulate importation during emergencies also allows him to set tariffs. Other presidents have used the law dozens of times, often to impose sanctions, but Trump was the first president to invoke it for import taxes.
(With AP inputs)
