Treasury Secretary Scott Bessent has revealed plans to prepare a defense of the Trump administration’s tariffs. This move is in anticipation of a potential Supreme Court ruling on the legality of these tariffs.
Bessent Readies Supreme Court Brief To Defend Tariffs
Bessent, in a conversation with Semafor on Monday, stated that he intends to draft a brief for the solicitor general that will support the Trump administration’s tariffs.
This comes in the wake of a federal appeals court ruling that the tariffs exceed the president’s emergency powers. Despite this ruling, the tariffs remain in place as the administration prepares to appeal to the Supreme Court. The administration has until Oct. 14 to initiate its appeal.
Bessent expressed confidence that the Supreme Court would ultimately rule in favor of the administration. He argued that the ongoing trade deficits could lead to an unsustainable equilibrium, potentially causing financial instability. The Treasury Secretary suggested that the U.S. economy is approaching a “tipping point.”
“Is the president using his emergency powers to truncate a financial crisis? What if someone had done that for housing in '05 or '06?" Bessent reflected.
He made these comments during his Labor Day tour of local restaurants, where he was promoting the recently enacted tax break on tips, a part of the Republicans’ comprehensive tax-and-spending law.
Trump Links Tariff Fight to US Economic Stability
This announcement comes on the heels of President Donald Trump’s warning that a $15 trillion investment in the U.S. would be “immediately cancelled” if the courts strike down his tariff policies. Trump made this statement on his Truth Social platform, emphasizing the potential economic devastation and the risk of the U.S. becoming a “Third World Nation” if the tariffs are invalidated.
Notably, the U.S. economy rebounded in the second quarter with 3.3% annualized growth, reversing a 0.5% contraction in the first quarter. The recovery was driven largely by a sharp narrowing of the trade deficit, as import surges tied to new tariffs subsided, allowing domestic demand to fuel the strongest expansion since the third quarter of 2023.
These developments underscore the high stakes and intense scrutiny surrounding the Trump administration’s tariff policies, with the potential to significantly impact the U.S. economy and global trade dynamics.
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