• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Economy

Trump White House prepares tariff fallback ahead of court ruling

By
Josh Wingrove
Josh Wingrove
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Josh Wingrove
Josh Wingrove
and
Bloomberg
Bloomberg
Down Arrow Button Icon
November 23, 2025, 10:31 AM ET
Trump
President Donald Trump.John McDonnell/Getty Images
Add Fortune on Google for similar content.

President Donald Trump’s administration is working behind the scenes on fallback options if the Supreme Court strikes down one of his major tariff authorities, looking to replace the levies as quickly as possible.

Recommended Video

Both the Commerce Department and the Office of the US Trade Representative have studied Plan B options if the court rules against the administration, according to US officials familiar with the planning. Those include Section 301 and Section 122 of the Trade Act, which grant the president unilateral ability to impose duties.

The replacements come with risks — they tend to be either slower or more limited than the wide-ranging powers Trump has asserted so far and could face their own legal challenges. The administration is holding out hope that it will win the case outright. Trump has repeatedly urged the justices to uphold his country-based tariffs, which he imposed by citing an economic emergency. 

Still, the preparations are the latest signal the administration is bracing for a potential unfavorable outcome, after the court appeared skeptical of Trump’s global tariffs during this month’s oral arguments. They also show Trump’s commitment to imposing tariffs, including through untested means. One administration official, speaking on condition of anonymity, said that tariffs will remain a core part of Trump’s economic agenda regardless of the court’s decision.

“We’re waiting for a decision. We hope it’s going to be good, but if it’s not, we’ll do — we always find ways, you know, we find ways,” Trump said Wednesday. 

The White House declined to comment on the specifics of its preparations but acknowledged it’s seeking “new ways” to maintain Trump’s trade policy.

“President Trump lawfully exercised the emergency tariff powers granted to the Executive Branch by Congress, and the Administration is confident in ultimate victory on this matter by the Supreme Court. The Administration is always examining new ways to address America’s historic goods trade deficit and reshore the manufacturing that’s critical to our national and economic security,” spokesman Kush Desai said.

It’s not clear when the Supreme Court will rule. The justices could uphold the tariffs, knock them down entirely or take a more targeted approach. The decision threatens to generate further uncertainty for businesses and foreign governments.

“My expectation is they’ll move immediately to reinstate them,” said Scott Lincicome, vice president of general economics at the Cato Institute, referring to Trump’s team. “They’re going to basically piece it all back together.”

The Supreme Court case hinges on Trump’s use of the International Emergency Economic Powers Act, or IEEPA, under which he’s imposed so-called “reciprocal” tariffs on imports worldwide, as well as charges on Chinese, Canadian and Mexican goods related to fentanyl and a levy on products from Brazil in an ill-fated attempt to stop the prosecution of former president and Trump ally Jair Bolsonaro.

The total effective tariff rate on US imports is about 14.4%, and more than half of that is due to IEEPA duties, according to Bloomberg Economics estimates. The economists “expect most duties to eventually be fully replaced” if the Supreme Court wipes out the country-based levies.

In some cases, backup plans are already in motion. Trump has launched a 301 investigation against Brazil, for instance, and has 301 levies on some Chinese products from his first term. The provision typically requires a lengthy investigation before duties can be implemented.

National Economic Council Director Kevin Hassett has said Trump may turn to 301 or 122 powers to reimpose import taxes if the Supreme Court rules against the administration.

“There are a lot of things that we could do so that we could reproduce the policies that we have right now with alternative authorities,” Hassett said during a Nov. 13 interview with Bloomberg host and Carlyle Group co-founder and co-Chairman David Rubenstein at an Economic Club of Washington event.

Section 122 powers would let the president impose tariffs of 15% — a threshold he’s settled on in several deals with other nations — but only for a maximum of 150 days. Trump trade adviser Peter Navarro earlier this year cited that time limit as a reason the administration does not plan to rely heavily on that measure.

Trump has also used Section 232 of the Trade Expansion Act to apply tariffs to sectors including metals and autos. The administration has announced new investigations and imposed fresh duties. Plus, the steady creep of completed products falling under those duties has irritated some trading partners, including those in Europe, who say it undercuts a cap on sectoral tariffs in the US-European Union trade pact. 

“I’m beginning to wonder whether this is part of the Administration’s Plan B should IEEPA be found unconstitutional,” former US trade negotiator Wendy Cutler posted last month on social media. “It’s only a matter of time before the 232s cover most of our manufacturing base.”

Section 338 of the Tariff Act is another potential tool for Trump, but one that could be ripe for a fresh legal fight given that it has never before been used.

“It would be subject to litigation, probably very quickly,” Lincicome said. “I’m cautiously optimistic that we are avoiding a return to 2025 chaos.”

Still, the new measures won’t be as easy for Trump to enact, given their limitations. Officials would have to grapple with novel legal questions, such as whether the administration could impose Section 122 tariffs concurrently, cancel them before the deadline and then reimpose them under a new clock or whether to retroactively apply duties to try and avoid refunding money collected under the existing system.

“It would be a huge mess,” Lincicome said.

An adverse court ruling could force the administration to give back more than $88 billion in duties already collected, according to Bloomberg Economics. 

White House Deputy Chief of Staff James Blair said he thinks there’s a 50-50 chance, or better, of the administration winning the case. But if it doesn’t, officials would essentially restore any levies struck down.

“There are tools that the president already has in existing authorities to pretty much just put it back through a different means,” Blair said at a Nov. 18 Bloomberg Government event. “We’ll see what they rule.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Josh Wingrove
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Economy

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Economy

Students happy outside of school
SuccessColleges and Universities
One U.S. college is fixing tuition at just 10% of parental income: ‘We’re not hiding the cost of college behind secret formulas’
By Emma BurleighJune 25, 2026
4 hours ago
ll
Economysummer
Deviled eggs, seltzer and a burger you can’t quit: The GLP-1 crowd is (halfway) reinventing the American BBQ
By Nick LichtenbergJune 25, 2026
5 hours ago
l
EnvironmentFrance
The hottest day in French history was so bad the Louvre and Eiffel Tower had to close early
By Samuel Petrequin and The Associated PressJune 25, 2026
6 hours ago
Current price of Bitcoin for June 25, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for June 25, 2026
By Joseph HostetlerJune 25, 2026
6 hours ago
Current price of oil as of June 25, 2026
Personal FinanceOil
Current price of oil as of June 25, 2026
By Joseph HostetlerJune 25, 2026
6 hours ago
A college graduate in regalia rests his chin in his hand.
Future of WorkGen Z
Gen Z graduates are blaming AI for their unemployment woes when they should be looking somewhere else
By Sasha RogelbergJune 25, 2026
12 hours ago

Most Popular

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
12 hours ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
1 day ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
1 day ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
Success
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
By Orianna Rosa RoyleJune 25, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.