US Treasury Secretary Scott Bessent revealed that the Trump administration has prepared an alternative strategy in case the Supreme Court strikes down the president’s use of a 1977 emergency law to impose sweeping tariffs. Still, he expressed confidence that the court would rule in the government’s favour.

Bessent told Reuters he was drafting a legal brief for the US solicitor general, who will lead the government’s appeal to the Supreme Court. The brief will stress the urgent need to fix long-standing trade imbalances and stop the inflow of deadly fentanyl into the United States.

Appeals Court Ruling Against Tariffs

Earlier, an appeals court dealt a setback to President Donald Trump by ruling that most of his tariffs were illegal. Members of Trump’s Cabinet, including Bessent, tried to delay the ruling by warning in their submissions that overturning the tariffs would seriously harm US foreign policy.

Bessent remained optimistic, saying, “I’m confident the Supreme Court will uphold it — will uphold the president’s authority to use IEEPA. And there are lots of other authorities that can be used — not as efficient, not as powerful.”

Other Options on the Table

Bessent explained that one option could be Section 338 of the Smoot-Hawley Tariff Act of 1930. This provision allows the president to impose tariffs of up to 50 percent for five months on imports from countries that discriminate against US trade.

The 7-4 decision by the US Court of Appeals for the Federal Circuit in Washington, DC, questioned the legality of Trump’s so-called “reciprocal” tariffs introduced in April. It also struck down separate tariffs imposed in February on China, Canada, and Mexico aimed at curbing fentanyl imports.

On India, China, and Russia

Bessent dismissed suggestions that Trump’s trade policies were drawing India, China, and Russia closer. He said their display of unity at the Shanghai Cooperation Organization (SCO) Summit was only symbolic.

“It happens every year for the Shanghai Cooperation Organization,” he said. “It’s more of the same. And look, these are bad actors … India is fueling the Russian war machine, China is fueling the Russian war machine … I think at a point we and the allies are going to step up.”

Pressure on India Over Russian Oil

Bessent also said Washington was making progress in persuading Europe to join its efforts against India’s purchases of Russian oil. The United States has already imposed a 25 percent extra tariff on Indian oil imports. However, he declined to say whether Washington would apply similar pressure on China.