The Trump Administration will “invoke alternative legal authorities” for tariffs, Treasury Secretary Scott Bessent said in Dallas on Friday, hours after the U.S. Supreme Court overturned the President’s far-reaching import duties.
Hosted by the Economic Club of Dallas, Bessent spoke Friday at Old Parkland hours after the high court issued the opinion that pushed back on Donald Trump’s signature economic policy since returning to office 13 months ago.
“Let’s be clear about what today’s ruling was and what it wasn’t,” the administration’s top finance official said in prepared remarks.
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“Despite the misplaced gloating from Democrats, ill-informed media outlets and the very people who gutted our industrial base, the court did not rule against President Trump’s tariffs. Six justices simply ruled that IEEPA authorities cannot be used to raise even $1 of revenue,” Bessent added.
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“This administration will invoke alternative legal authorities to replace the IEEPA tariffs,” citing Section 232, 301, and 122, parts of trade acts that give limited tariff powers to the executive branch. He said that tariffs pursued through these means will “result in virtually unchanged tariff revenue in 2026.”
In a question and answer session with local real estate developer Ray Washburne, Bessent conceded that he was “a little surprised” by the Supreme Court’s decision, but said the Administration is already in the process of pursuing tariffs through processes outlined by the aforementioned sections.
Bessent noted before speaking on tariffs that he did not change “one word” of his prepared speech following the Court’s decision. In his speech, he touted trade deals made with other countries and efforts taken by the Trump administration to “reset the global trade paradigm.”
The tariffs, the Trump Administration’s signature economic policy, were first applied to Mexico and Canada, then China, before “Liberation Day” in April attached steep “reciprocal” taxes to imports from nearly every country on Earth.
Trump claimed authority for the unilateral action, despite Congress’ constitutional power over the purse, under the International Emergency Economic Powers Act. However, in a 6-3 decision, the Supreme Court indicated it not agree.
The Court didn’t address whether importers are entitled to refunds — but if fully allowed, that number could total over $170 billion, according to a Penn-Wharton Budget analysis, which is more than half the revenue the tariffs have brought in.
Other legal avenues to levy tariffs available to the Administration are more cumbersome. Trump has already announced a 10% global tariff under Section 122, which has never been used before. Section 301, meanwhile, requires an investigation before implementing tariffs and other trade measures under certain conditions.
Bernie Moreno, a Republican senator from Ohio, suggested his party codify Trump’s tariffs through a budget reconciliation bill in Congress, where Republicans carry both chambers.
Bessent addressed a variety of topics in his time at Old Parkland, including the Trump administration’s economic policies going forward, stablecoins and AI, and “Trump accounts.“
He also praised Texas’ economic growth and Dallas’ “Y’all Street”, which he called “one of the fastest-growing financial hubs in the country.”
Trump accounts ‘most important program since Social Security’
Bessent departed Old Parkland for an event in Addison promoting the new Trump accounts, signed into law in the One Big Beautiful Bill.
Per the 2025 omnibus tax and spending bill, babies born between Jan. 1, 2025, and Dec. 31, 2028, will receive $1,000 in seed money from the Treasury to launch an IRA-style account. The money is invested in index funds and locked until the child turns 18.
Parents can also set up accounts for children born outside the window, but without the seed money, and make their own deposits to the accounts.
Bessent, to an audience of Dallas’ rich and powerful, promoted the ability of companies to sponsor additional seed money for the Trump accounts.
Texas’ Michael and Susan Dell gave more than $6 billion to seed the Trump accounts. Bessent said companies could “sponsor a school district, or sponsor a zip code” or similar mechanisms and add as much as $5,000 per child to the accounts.
“The President has called on business leaders and philanthropists all around the country to get involved in the initiative, and today I’m calling on the men and women in this room to do the same. Everything is bigger in Texas, and that should also be true for Trump accounts,” Bessent said.
“I think this is going to be the most important program since Social Security in terms of financial security,” he added later.
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