If SCOTUS Rules Against Tariffs, the Country Is ‘Screwed’; Kevin Hassett Lays Out Alternative – RedState
Market watchers eagerly await the U.S. Supreme Court’s decision on the combined cases of Learning Resources, Inc. v. Trump And VOS selections against Trumpwhich will determine the Trump administration’s ability to use the International Emergency Economic Powers Act (IEEPA) to impose tariffs. If SCOTUS supports President Donald Trump’s use of the IEEPA to impose tariffs on other countries, then it will have no concerns about the need to reimburse importers who contributed to the tariff provisions.
SCOTUS could also go in another direction, granting Trump limited powers under IEEPA but requiring limited reimbursements. Many expected a decision to be made Friday, but were disappointed. SCOTUS is expected to issue its next set of decisions on Wednesday.
Trump spoke to Truth Social on Monday to express concern and sound the alarm if SCOTUS rules against his use of IEEPA.
– Rapid Response 47 (@RapidResponse47) January 12, 2026
The actual numbers we would have to repay if, for some reason, the Supreme Court were to rule against the United States of America on tariffs, would be several hundred billion dollars, and that doesn’t include the amount of “reimbursement” that countries and companies would demand for the investments they make in building factories and equipment, in order to be able to avoid paying tariffs. When these investments are added, we’re talking billions of dollars! It would be a total disaster and almost impossible for our country to pay for. Anyone who claims that this can be done quickly and easily would be giving a false, inaccurate or completely misunderstood answer to this very large and complex question. This may not be possible, but if it were, the dollars would be so large that it would take many years to determine what amount we are talking about and even who, when and where to pay. Remember, when America shines bright, the world shines bright. In other words, if the Supreme Court rules against the United States of America on this national security bonanza, WE ARE SHOT!
PRESIDENT DONALD J. TRUMP
As RedState has reported, the plaintiffs named in the lawsuit are a conglomerate of small businesses, but the real backers of this legal challenge are conservatives, and conservative judicial activist and founder of the Federalist Society Leonard Leo — who was instrumental in directing judicial nominations for Trump 45 but is now no longer part of Trump 47’s circle of trust — is among the top backers. Leo’s organizations, supported by Donors Trust, have invested significant sums in this effort to prevent the failure of Trump’s tariffs.
Learn more: What’s Behind Federalist Society’s Leonard Leo’s Support for Supreme Court Tariff Case?
Trump Administration Announces New Year Adjustments to Some Import Tariffs
Treasury Secretary Scott Bessent’s tone on how he thought the SCOTUS could govern seemed far from optimistic.
Treasury Secretary Scott Bessent himself said Thursday that he expected a “hodgepodge” decision.
“What is beyond doubt is our ability to continue to collect tariffs at about the same level, in terms of overall revenue,” Bessent said during an appearance in Minneapolis. “What is questionable, and it is a real shame for the American people, is that the president loses the flexibility to use tariffs both for national security and as negotiating leverage.”
National security appears to be the driving force behind Trump’s desired use of tariffs. On Monday, he used this ability to impose tariffs against the Iranian regime.
#NOW ASSET:
“Starting today, any country doing business with the Islamic Republic of Iran will pay a 25% customs duty on all business done with the United States of America. pic.twitter.com/w5wyJFCRDw
– Conflict Radar (@Conflict_Radar) January 12, 2026
However, other Cabinet members were more optimistic. National Economic Council Director Kevin Hassett signaled that the administration has workarounds in case the SCOTUS decision does not go in its favor.
National Economic Council Director Kevin Hassett said Friday that the White House could deploy alternative measures if the Supreme Court rules against President Donald Trump’s use of emergency powers to impose massive levies.
“There was a big call last night with all the leadership to discuss if the Supreme Court rules against this IEEPA tariff, what would be the next step? » Hassett said on CNBC’s “Squawk on the Street,” referring to the administration’s use of the International Emergency Economic Powers Act.
“There are many other legal authorities that can replicate the agreements that we have made with other countries, and can do it virtually immediately. And so our hope is that we are going to win, and if we don’t win, then we know that we have other tools that we could use to get us to the same place,” he said.
Hassett said U.S. Trade Representative Jamieson Greer had been closely involved in developing the contingency plans.
Trump is good at both sparking conversations and shaking up foreign policy and international relations, and he has hit the mother lode by pushing tariff policy to the degree he has. Whatever the SCOTUS decides, the world has become accustomed to, and even enlightened to, the concept of tariffs and how they could affect foreign policy. Now is the time for Trump to make clear how this will ultimately affect the bottom line of the average American.
Editor’s note: Thanks to President Trump and his administration’s bold leadership, we are respected on the world stage and our enemies are put on notice.
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