Bessent Says Supreme Court Unlikely To Block Trump Tariffs
Treasury Secretary Scott Bessent said Sunday that it is “very unlikely” the Supreme Court will strike down President Donald J. Trump’s use of emergency powers to impose tariffs, expressing confidence that the justices will not disrupt what he described as a cornerstone of the administration’s economic strategy.
Appearing on Meet the Press, Bessent defended the president’s authority.
“I believe that it is very unlikely that the Supreme Court will overrule a president’s signature economic policy,” Bessent said. “They did not overrule Obamacare. I believe that the Supreme Court does not want to create chaos.”
His reference was to the Court’s recent decision upholding a key provision of the Affordable Care Act allowing a federal panel to recommend preventive services that insurers must cover at no cost to patients.
Tariffs Tied to Greenland Dispute
Bessent’s remarks came one day after President Trump announced plans to impose a new round of tariffs on European goods until what he described as “a Deal is reached for the Complete and Total purchase of Greenland.”
While the administration has not publicly specified the statute being invoked, the action mirrors prior tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which grants the president authority to take economic action in response to an “unusual and extraordinary threat.”
Under the new plan, tariffs on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will begin at 10 percent on Feb. 1 and rise to 25 percent on June 1.
The president has argued that the United States possesses unique strategic and military capabilities necessary to secure Greenland amid growing Arctic tensions.
“We have subsidized Denmark, and all of the Countries of the European Union, and others, for many years by not charging them Tariffs, or any other forms of remuneration,” Trump wrote. “Now, after centuries, it is time for Denmark to give back.”
The tariffs extend beyond Denmark to other European nations that have pledged military support to Greenland under Danish sovereignty — a move Trump has described as escalating geopolitical tensions in the Arctic region.
Supreme Court Showdown Looms
The Supreme Court heard oral arguments last November regarding Trump’s use of IEEPA to justify sweeping tariff authority. Observers initially expected a ruling in January, but the Court has yet to issue its decision. A verdict could come before the end of the term — possibly as soon as this week.
At issue is whether the president’s invocation of emergency economic powers fits within the statute’s definition of an “unusual and extraordinary threat.”
The stakes are substantial. A ruling against the administration could potentially require the federal government to refund billions in previously collected duties — a scenario that has raised concerns within the White House.
Tariff Revenue Boosts Treasury
Meanwhile, tariff collections have surged, offering a fiscal boost as the administration works to rein in deficit growth.
The federal government collected $30 billion in customs duties in January alone, bringing the fiscal year total to $124 billion — a 304% increase over the same period last year.
President Trump first implemented broad tariffs on goods and services entering the United States in April 2025, including “reciprocal tariffs” targeting specific trading partners. Since then, the administration has engaged in negotiations while maintaining pressure through tariff policy.
Treasury data shows that in the fourth month of the fiscal year, the budget shortfall was approximately $95 billion — about 26% lower than the same period last year. Year-to-date, the federal deficit stands at $697 billion, down 17% compared to the previous year. After adjusting for calendar differences, the reduction is roughly 21%.
However, the nation’s $38.6 trillion debt continues to generate substantial interest costs. Net interest payments totaled $76 billion for the month — trailing only Medicare, Social Security, and healthcare expenditures. Gross interest payments have reached $426.5 billion this fiscal year, up from $392.2 billion last year.
Broader Economic Implications
Supporters of the president’s tariff strategy argue that the policy strengthens American leverage abroad while generating meaningful revenue at home. Critics warn of market volatility and potential trade retaliation.
For now, the Supreme Court’s forthcoming decision could determine the future scope of presidential authority under IEEPA — and shape the trajectory of U.S. trade policy during President Trump’s second term.