Trump says he'll 'figure something out' if tariffs are struck down, as Supreme Court ruling may come next week
President Trump discussed the potential Supreme Court ruling on his tariffs, indicating he would find alternative ways to maintain them if struck down. He emphasized the economic impact of losing these tariffs, which are projected to cost U.S. households an average of $1,000 in 2025. The ruling is anticipated soon, as the court resumes on February 20. Trump also mentioned the ongoing DOJ probe affecting the confirmation of his Fed nominee, Kevin Warsh, without indicating any intervention.
By Victor Reklaitis
New research gives estimates for how much the president's import taxes are costing Americans
President Donald Trump spoke this week about a much-anticipated ruling by the Supreme Court on his tariff policies. He's shown here at a White House event last week.
President Donald Trump said he's ready to maintain his tariffs through other avenues, as he talked about the possibility of the Supreme Court ruling against those import taxes.
In a Fox Business Network interview that aired Tuesday afternoon, Trump said he hopes the high court "does what's right for the country," but if he loses, he will "figure something out."
"It won't be as beautiful as it is right now," the president added.
The Supreme Court, which has a 6-3 conservative majority, is weighing in on Trump's tariff policies after lower courts last year found that he exceeded his authority in using the International Emergency Economic Powers Act of 1977 to justify his many country-specific levies. Opponents of the IEEPA-based tariffs have emphasized that the law doesn't explicitly mention tariffs in its text, and that no president has ever used IEEPA to impose tariffs.
Trump has defended his IEEPA tariffs repeatedly and claimed that the U.S. economy would be hurt significantly if the Supreme Court were to strike them down.
His comments about using other avenues to maintain his tariffs match what Trump administration officials have been saying. They've said they're prepared to maintain the president's duties by invoking authorities granted in sections 301 and 122 of the Trade Act of 1974, as well as Section 232 of the Trade Expansion Act of 1962.
Investors, importers and others have been bracing for the Supreme Court's ruling, but it hasn't come on recent days when other opinions have been issued. The court is currently on recess, but its break ends on Feb. 20 - in about a week and a half - so there's a chance the tariff decision finally could come that day.
Related: The wait for a tariff ruling could signal a Trump win - or a refund headache
Trump's tariffs in his second term amount to an average tax increase per U.S. household of $1,000 in 2025 and $1,300 in 2026, according to research released on Friday by the Tax Foundation, a think tank. They rank as the largest U.S. tax increase as a percent of gross domestic product since 1993, the foundation found.
In the Fox Business interview, Trump also addressed how his Department of Justice's criminal probe of current Federal Reserve chief Jerome Powell is holding up the Senate Banking Committee's confirmation of his nominee for the top Fed job, Kevin Warsh. The obstruction comes because one member of the banking panel, Republican Sen. Thom Tillis of North Carolina, has promised repeatedly to block Warsh until Trump's DOJ ends that probe.
Trump gave no indication that he's asking the U.S. attorney for Washington, D.C., Jeanine Pirro, to back off.
"We'll have to see what happens," the president said.
"I wasn't involved in it. Jeanine Pirro is doing it. She's very good. She's very strong, and we'll see how it happens," he added.
-Victor Reklaitis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-10-26 1736ET
