Besent comments on when tariff rate will increase from 10%

Besent comments on when tariff rate will increase from 10%

Treasury Secretary Bessent on Trump Tariff Increases and Legal Strategy
As of March 2026, U.S. Treasury Secretary Scott Bessent has reaffirmed that President Donald Trump’s tariff policies will remain “unchanged” in the near term, despite ongoing legal challenges. Trump announced on February 21, 2026, that the administration would raise the temporary global tariff rate on imported goods to 15%, up from 10%, following a Supreme Court ruling that invalidated prior tariffs justified under the International Emergency Economic Powers Act (IEEPA).

Bessent emphasized during the New York Times DealBook Summit that the administration is prepared to maintain its tariff agenda regardless of the court’s outcome. If the Supreme Court rules against the current IEEPA-based tariffs, the administration could pivot to alternative legal frameworks, including Sections 301, 232, or 122 of various trade acts. These provisions allow tariffs to be imposed for reasons such as “unfair” foreign trade practices or national security, with varying duration and rate limits. For instance, Section 232 tariffs—already applied to steel, aluminum, and autos—are not currently under judicial review and could serve as a model for future measures.

Bessent also clarified that he previously acknowledged being "wrong" to suggest tariffs were inflationary, citing economic data showing inflationary pressures easing despite Trump’s policies. He argued that tariffs have not significantly contributed to inflation, though critics, including Democratic lawmakers, dispute this, citing rising costs in sectors like housing and consumer goods.

The administration’s legal strategy hinges on executive authority under trade laws, which Bessent described as “broad” and flexible. While a Supreme Court loss could force a shift in justification, he expressed confidence in the administration’s ability to “re-create the exact tariff structure” through alternative legal pathways. A ruling on the IEEPA case is expected by June 2026.

For investors, the administration’s tariff trajectory underscores ongoing uncertainty in global trade policy, with potential implications for supply chains, inflation, and U.S.-China trade dynamics. Bessent reiterated that the long-term goal of tariffs is to “rebalance trade” and boost domestic production.