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Presidential administration considering alternate measures if High Court disallows Trump's tariffs, according to a news report.

Trump petitions Supreme Court to reinstate emergency tariff powers, contesting lower court rulings that deemed such authority beyond the scope of the International Emergency Economic Powers Act; concurrently, White House advisers pursue alternative legal strategies.

Trump administration assessing contingency plans if Supreme Court invalidates tariffs decree
Trump administration assessing contingency plans if Supreme Court invalidates tariffs decree

Presidential administration considering alternate measures if High Court disallows Trump's tariffs, according to a news report.

In a significant ruling, the Supreme Court has determined that the International Emergency Economic Powers Act (IEEPA) does not grant presidents the power to impose tariffs on foreign goods. The decision, a 7-4 vote, stated that the statute does not explicitly include such authority.

The ruling, however, does not prevent President Trump from relying on other laws for his tariff powers. The White House is now focusing its legal strategy on other laws where Congress has delegated tariff powers to the president.

One such law is Section 232 of the Trade Expansion Act of 1962, which allows the president to raise duties if imports are deemed a national security threat. Many of Trump's tariffs on steel, aluminum, and cars already fall under this section. Another law is Section 301 of the Trade Act of 1974, which permits the US trade representative to investigate trade disputes and authorise presidential action.

The negotiations with foreign governments have been complicated due to the legal battle surrounding the tariffs. Trump's inability to enforce tariffs as broadly and quickly as he wanted has slowed these negotiations. In response, the White House is considering contingency plans for keeping tariffs in place as the legal battle moves forward.

The original legal strategy was championed by senior trade counselor Peter Navarro. White House aides have been exploring other methods to keep tariffs in place, including contingency plans that have been under consideration for months, anticipating possible court setbacks.

The current context of Section 301's scope remains unclear. Neither Section 232 nor Section 301 provides the sweeping authority Trump sought under the IEEPA. If the Supreme Court rejects the White House's lawsuit to compel Senate confirmation of tariff authority, the organisation with the power to advise the Trump administration on tariff implementation would be the U.S. Congress, specifically the Senate.

In light of the ruling, President Donald Trump has petitioned the Supreme Court to quickly review a ruling that blocked his use of the IEEPA to impose duties on foreign goods. The decision comes as a setback for Trump's aggressive trade policies, but the White House's commitment to maintaining tariffs remains unwavering.

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