U.S. Trade Representative Jamieson Greer announced on Wednesday that even if the Supreme Court invalidates reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the United States could still generate approximately $200 billion in annual tariff revenue through other legal means.
Speaking at a public event hosted by the Atlantic Council in Washington, D.C., Greer indicated that the government could maintain that level of tariff revenue even if it ultimately lost the IEEPA-related lawsuit.
The U.S. Supreme Court is currently reviewing the legality of the reciprocal tariffs imposed under IEEPA during the Trump administration. Lower courts have ruled the tariffs unconstitutional, citing an overreach of presidential authority into Congress’s taxing powers. A final ruling is expected in early 2026.
When asked about contingency plans if IEEPA is struck down, Greer said the administration had examined a range of legal options from the outset to advance its trade objectives. He noted that Congress has delegated multiple statutory authorities to the president and executive agencies to take action on trade matters.
Greer also said that Section 232 tariffs on steel, aluminum, and automobiles are not affected by the lawsuit and will remain in place. He added that the administration continues to review other tools, including Section 301 of the Trade Act, which allows tariffs in response to unfair trade practices, and Section 122, which addresses balance-of-payments concerns, indicating that these options remain under consideration.
However, Greer was cautious about revealing specific alternative plans, citing strict instructions from legal counsel to maintain confidentiality.
Regarding potential large-scale refunds to businesses if IEEPA tariffs are invalidated, Greer deferred to the Treasury Department and Customs and Border Protection (CBP). He mentioned a recent meeting with the CBP Director but admitted uncertainty about the outcome.
On the Trump administration’s trade policy towards China, Greer said the administration’s objective is to promote more balanced trade relations and emphasized the need for careful management of the bilateral relationship.
He also pointed to former President Donald Trump’s focus on building a constructive relationship with China aimed at achieving fair and mutually beneficial trade in goods and services.
Addressing recent digital regulatory disputes between the United States and the European Union, Greer expressed concern over what he described as the EU’s aggressive regulatory posture.
Despite a July agreement to avoid discriminatory measures against U.S. tech firms, the EU recently imposed substantial fines on Elon Musk’s X platform, formerly Twitter. President Trump criticized this as a nasty move.
Greer said the United States does not seek to interfere with other countries’ regulatory systems or sovereignty but will continue to regulate its own companies. He added that Washington would not allow regulatory authority to be effectively outsourced and expressed hope for more constructive dialogue with the EU going forward.
