The controversial “reciprocal tariffs” imposed by President Donald Trump on nearly all major trading partners have triggered widespread criticism — both within the United States and across the world.
Business leaders, economists, and international governments have decried the move, calling it a blunt instrument that disrupts global trade, stokes inflation, and undermines America’s role as a fair trading partner.
Amid this growing uproar, US Treasury Secretary Scott Bessent has acknowledged that if the Supreme Court upholds a federal appeals court ruling striking down the tariffs, the Treasury would be forced to issue massive refunds.
Speaking on NBC’s Meet the Press, Bessent admitted: We would have to give a refund on about half of the tariffs, which would be terrible for the Treasury. If the court says it, we’d have to do it.”
The secretary, however, hinted at “numerous other avenues” short of rebates, though he conceded these would weaken President Trump’s negotiating position on the global stage.
Legal Challenge to Trump’s Authority
The tariffs were originally justified by the Trump administration under the International Emergency Economic Powers Act (IEEPA), but a federal appeals court on August 29 ruled that the law does not grant the president sweeping authority to impose such emergency tariffs.
The court, in its majority opinion, said: We discern no clear congressional authorization by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs.”
The ruling has thrown Trump’s trade policy into disarray, though its implementation was delayed until October 14, allowing the new tariff regime introduced in August to remain in force until the Supreme Court delivers its verdict.
Domestic & Global Backlash
The Trump administration has slapped tariffs as high as 50% on countries like Brazil and India, while also targeting traditional allies such as Japan, South Korea, the UK, and the European Union.
The move has sparked fury among foreign governments, retaliatory threats of counter-tariffs, and warnings of a full-scale trade war. Inside the United States, industries dependent on imports — from steel to consumer electronics — have warned of rising prices, supply chain disruptions, and job losses.
Economists say American consumers are already paying the price, with tariffs acting as a hidden tax that disproportionately hurts middle-class families. Civil society groups have condemned the policy as “reckless economics” driven more by political posturing than long-term strategy.
What Lies Ahead?
Bessent has publicly expressed confidence that the government will prevail in the Supreme Court. Yet, the appeals court’s decision has cast serious doubt on whether the Trump administration can legally sustain its tariff-heavy trade doctrine.
With pressure mounting both at home and abroad, critics argue that the administration’s approach risks isolating the United States at a time when global cooperation is essential.
The world now watches closely as the Supreme Court prepares to weigh in — a ruling that could reshape not only America’s trade strategy but also its credibility in international negotiations.
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