Scott Bessent told CNN’s Dana Bash how the administration plans to rebuild tariff levels after the Supreme Court limited IEEPA authority, laying out the legal paths and the timeline they expect to use while declining to preempt court rulings on refunds.
On-air, Bessent walked through the administration’s response after the high court narrowed the president’s power under the International Emergency Economic Powers Act (IEEPA). He framed the approach as a switch to alternative authorities that can replicate the prior tariff posture without relying on the struck-down IEEPA basis. The tone was firm and procedural, focused on statutes and the process rather than political drama.
Bessent said the administration would use short-term statutory levers while studies run their course, and he emphasized that those stopgap authorities are limited by design. “This 122 authority is good for 150 days,” Bessent said. “During that time, we will do study on Section 232, which will be done by the Commerce Department, Section 301, which will be done by USTR. Those tariffs remain in effect and have withstood more than 4,000 challenges since the President’s first term.”
He explained the specific legal tools the White House expects to employ to restore prior levels without relying on IEEPA. Section 122 of the Trade Act of 1974 provides a short-term, across-the-board tariff option of up to 15 percent for balance-of-payments issues, available for up to 150 days. Section 232 of the Trade Expansion Act of 1962 permits national security-based tariffs after a Commerce Department investigation, and Section 301 of the Trade Act of 1974 allows USTR to act against unfair foreign trade practices.
“So during that time, it is very likely that those studies will result in higher 232s, higher 301s, and it will get us back to the same tariff level,” Bessent added. “We’ve been in touch with our foreign trading partners, and all of them want to keep the trade deals that have been set. You know, Dana, we’ve had great economic results over the past year, 4.1 percent, second quarter GDP, 4.3, 4.4, and the third quarter, and it would have been a very strong fourth quarter if the Democrats hadn’t shut down the government to hurt the American people.”
Bash pressed next on the money side: would the administration refund the roughly $134 billion collected under the IEEPA tariffs now that the court limited that authority. The Treasury secretary noted the Supreme Court had not decided the refund question and had remanded legal issues back to lower courts, so the executive branch would not pre-judge those outcomes. Bessent repeatedly framed the refund question as outside the narrow Supreme Court ruling and as a matter for the courts to resolve.
“Well, Dana, that’s not the big question. Let’s just level set here,” Bessent said. “What the Supreme Court did was a very narrow reading of the President’s authority under the IEEPA tariffs. We have other tariff authorities which have been functioning, Section 232 tariffs, Section 301 tariffs. And, Dana, when you say it’s a big question, that’s bad framing because the Supreme Court didn’t even address that.”
“The Supreme Court remanded it down to a lower court. And, you know, we will follow what they say, but that could be weeks or months when we hear them,” Bessent added. “So the Supreme Court did not address refunds.”
Bash pushed the point, citing an earlier Justice Department filing in the appeals case that suggested refunds could be issued if tariffs were later held unlawful. “Well, the Justice Department told a federal appeals court in this very case last year if tariffs imposed on plaintiffs during these appeals are ultimately held unlawful, then the government will issue refunds to plaintiffs,” Bash said.
“Again, I’m not going to get out ahead of the court,” Bessent replied. “We will follow the court’s direction. But, as I said, that could be weeks or months away. That decision was not rendered on Friday.”
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
