Bessent says U.S. has 'lots' of options to use on tariffs if it loses Supreme Court case

Treasury Secretary Scott Bessent said Tuesday that there are other options in case of defeat as the Supreme Court is about to hear a landmark case on President Donald Trump's tariffs.

The high court is set Wednesday to hear arguments on whether Trump exceeded his authority under the International Emergency Economic Powers Act to enact sweeping duties on U.S. trading partners.

At stake is the leeway presidents have to wield over trade measures as a tool of economic policy. Bessent expressed confidence in a CNBC "Squawk Box" interview that the administration will prevail, but has additional outlets it can use in case the decision goes the other way.

"There are lots of other authorities that can be used, but IEEPA is by far the cleanest, and it gives the U.S. and the president the most negotiating authority," he said. "The others are more cumbersome, but they can be effective."

Specifically, Bessent sited Section 232 of the Trade Expansion Act of 1962, which provides a justification on grounds of national security, as well as Section 301 of the Trade Act of 1974, which regulates unfair trading practices.

However, they would limit the president's ability to use tariffs, as Trump has, under "emergency" grounds.

"This is very important tomorrow, and SCOTUS is going to hear this," Bessent said, referring to the court's nickname. "This is a signature policy for the president, and traditionally, SCOTUS has been loath to interfere with these signature policies."

Outside of the court case, the secretary talked up the relationship the White House has with China, following last week's meeting between Trump and Xi Jinping. An agreement reached at the gathering in South Korea resulted in deals that set back some of the most onerous tariffs the two sides had slapped on each other.

"It was a very good meeting. Both sides approached it with great respect," Bessent said. "I think President Trump is the only leader who President Xi respects. ... The relationship is in a good place."

Bessent said there are two state visits set up for 2026, one in Beijing and the other in the U.S.