Treasury Secretary Bessent: "We Will Implement Alternative Tariffs...No Change in This Year's Tariff Revenues"

References to Sections 122 and 301 of the Trade Act
Use of Section 232 of the Trade Expansion Act as well

Scott Bessent, U.S. Secretary of the Treasury. Yonhap News

On the 20th (local time), US Secretary of the Treasury Scott Bessent said he would use alternative tools for imposing tariffs in response to the US Supreme Court ruling that reciprocal tariffs are illegal, and stated that this year's tariff revenues will be maintained.

In a speech distributed that day by the Treasury Department for the "Dallas Economic Club," Secretary Bessent said, "This administration will exercise other legal authorities to replace tariffs imposed under the International Emergency Economic Powers Act (IEEPA)," adding, "We will make use of tariff authorities under Section 232 of the Trade Expansion Act and Section 301 of the Trade Act, which have been tested through thousands of legal challenges."

Secretary Bessent added, "Treasury projections show that when tariffs under Sections 232 and 301, which could be strengthened through the use of Section 122 authority, are combined, tariff revenues in 2026 will be virtually unchanged."

Section 122 of the Trade Act grants the president authority to impose tariffs of up to 15% for a maximum of 150 days in order to address a serious US trade deficit.

Section 232 of the Trade Expansion Act provides the president with tariff authority if, based on investigations by the relevant departments, imports of specific items are determined to threaten national security.

Section 301 of the Trade Act allows the president, after a period of notice and public comment to a trading partner that engages in unfair and discriminatory trade practices against the United States, to take retaliatory measures such as tariffs.

This is interpreted to mean that by imposing tariffs under Section 122 of the Trade Act while also using tariff authorities under Section 232 of the Trade Expansion Act and Section 301 of the Trade Act, the United States can preserve most of the reciprocal tariff revenues that were collected or expected to be collected under IEEPA.

Regarding the Supreme Court's illegality ruling, Secretary Bessent said, "Democrats, ignorant media outlets, and the very people who destroyed our industrial base are inappropriately rejoicing, but the Court did not rule against the president's tariffs," adding, "Six justices of the Supreme Court merely ruled that not a single dollar can be collected under IEEPA authority."