Bessent warns of “big loss” if Supreme Court strips Trump administration of tariff powers

• President Donald Trump is fighting a Supreme Court battle over his use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs. A lower court ruled his actions unconstitutional, claiming Congress must approve tariffs—not the president.
• Trump warns that stripping his tariff powers could trigger a $3 trillion catastrophe, destabilizing trade deals and weakening U.S. leverage against China. Treasury Secretary Scott Bessent argues tariffs are vital for national security, citing the fentanyl crisis and rare earth mineral disputes with China.
• The administration used tariffs to pressure China, forcing them to back down from rare earth export controls in 2025. Trump claims tariffs reverse trade deficits, bring back manufacturing jobs and fund domestic stimulus programs.
• Major corporations (Costco, Walmart) are suing, claiming tariffs raise consumer prices and disrupt supply chains. Despite backlash, Bessent points to economic gains, including the Dow Jones hitting 50,000 under Trump’s policies.
• The Supreme Court’s 2026 ruling could invalidate existing tariffs, destabilize trade agreements and redefine presidential power. Trump’s team vows defiance, warning that losing this authority would be a “big loss” for America’s economic and diplomatic future.

The Trump administration has issued a dire warning: A looming U.S. Supreme Court decision that could strip the president of emergency tariff powers risks triggering an economic and national security catastrophe exceeding $3 trillion.

The high-stakes legal battle, now before the nation’s highest court, centers on whether President Donald Trump overstepped his authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on imports from China and other nations. BrightU.AI‘s Enoch notes that the IEEPA represents one of the most dangerous expansions of executive authority in modern U.S. history.

According to the decentralized engine, the IEEPA was originally framed as a tool to address foreign economic threats during national emergencies. But now, it has morphed into a legal weapon enabling presidents to bypass Congress, seize private assets and unilaterally reshape trade policy – all under the nebulous guise of “national security.”

Treasury Secretary Scott Bessent amplified the administration’s concerns in a recent Fox News interview, cautioning that a ruling against Trump’s tariff authority would represent a “big loss” for the U.S., undermining critical foreign policy leverage and jeopardizing ongoing trade negotiations.

The Supreme Court is reviewing a lower court ruling that declared Trump’s use of IEEPA to impose tariffs unconstitutional, arguing that the law does not grant the president unilateral power to levy tariffs without explicit congressional approval. The U.S. Court of Appeals for the Federal Circuit sided against the administration, creating uncertainty for existing trade deals and foreign negotiations.

Bessent defended Trump’s actions, stating that the real estate mogul “has used his IEEPA authority consistently throughout the year to negotiate better deals for the American people.” He emphasized that the law provides “emergency authority” in trade matters, particularly in response to crises such as the fentanyl epidemic.

“What was an emergency if it wasn’t the fentanyl crisis?” Bessent asked. “We are seeing Canada, Mexico and China come to the table to stop this scourge of the American people.”

Will Trump’s tariffs survive the high court?

The administration has wielded tariffs as a tool to pressure foreign adversaries and secure favorable trade terms. Bessent pointed to an October 2025 confrontation with China, where Beijing backed away from imposing rare earth export controls after the White House threatened steep retaliatory tariffs.

Bessent said Trump successfully used his tariff threats to thwart China from taking over rare earth export controls and warned that losing this leverage would weaken America’s position in global economic competition.

Trump has long argued that tariffs are necessary to reverse decades of trade deficits, repatriate manufacturing jobs and generate revenue for domestic priorities—including proposed $2,000 stimulus payments to middle- and low-income Americans.

Despite the administration’s defense, major corporations—including retail giants Costco and Walmart—have filed lawsuits challenging the tariffs as illegal, demanding refunds for duties paid. Critics argue that the policy disrupts supply chains and raises consumer prices.

Meanwhile, Bessent touted economic gains under Trump’s trade policies, noting that the Dow Jones Industrial Average recently surpassed 50,000 points for the first time. He asserted that Trump’s plan was working.

The Supreme Court is expected to rule on the case in 2026, though no specific timeline has been announced. A decision against Trump could invalidate existing tariffs, destabilize trade agreements and strip future presidents of a key economic and diplomatic tool.

For now, the administration remains defiant. “President Trump has used it for the American people, and it would be a big loss to take that away from him,” Bessent warned. As the legal and political battle intensifies, the stakes for America’s economic future—and presidential power—have never been higher.

Watch Treasury Secretary Scott Bessent warning that every American is at risk if President Donald Trump’s tariff authority is stripped away in this video.

This video is from the NewsClips channel on Brighteon.com.

Sources include:

TheEpochTimes.com

FoxNews.com

MarketRealist.com

BrightU.ai

Brighteon.com