It looks like US Treasury Secretary Scott Bessent is not pleased with US courts going against US President Donald Trump’s tariffs. Reportedly, Bessent said he expects the Supreme Court to uphold the IEEPA-based tariffs, but if it strikes down the tariffs, Bessent said in an interview, the administration will simply switch to other tariff authorities, including Section 122 of the Trade Act of 1974, which allows broad 15% tariffs for 150 days to calm trade imbalances.
“You should assume that they’re here to stay,” Bessent said of Trump’s tariffs.
Reportedly, US factory equipment maker OTC Industrial Technologies has long used low-cost countries to supply components – first China and later India – but President Donald Trump‘s blitz of tariffs on numerous trade partners has upended the supply chain math for CEO Bill Canady.
“We moved things out of China and went to some of those other countries, and now the tariffs on those are as bad or worse,” Canady told Reuters. “We just have to hang on and navigate our way through this so we don’t all go broke in the short run.”
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Reportedly, for countries that have negotiated tariff-lowering trade deals with Trump, “you should honor your agreement,” Bessent added. “Those of you who got a good deal should stick with it.”
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said in announcing sweeping reciprocal tariffs in April under this law.
“Reciprocal – that means they do to us and we do it to them,” Trump added.
The ongoing debate over Trump-era tariffs underscores the persistent tension between U.S. trade policy, legal authority, and economic impact. Treasury Secretary Scott Bessent’s remarks signal that the administration is committed to maintaining tariffs, even if courts challenge the current legal basis, and is prepared to invoke alternative authorities such as Section 122 of the Trade Act of 1974. This approach reflects a broader shift toward a more assertive, reciprocal trade stance, aiming to correct perceived imbalances with trading partners.
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For businesses like OTC Industrial Technologies, the tariffs create a complex and unstable supply chain environment. Efforts to diversify production away from high-cost or heavily taxed countries are repeatedly disrupted as new tariffs are applied, raising costs and complicating planning. Companies must navigate a landscape where trade policy can change quickly, often with little warning, making long-term investment and strategy more difficult.
“I think the new normal is going to be 15%,” Canady said of Trump’s tariffs, regardless of the legal authority he invokes. “They’re going call it whatever they need to call it so that it is not challengeable.”
In a larger context, these developments suggest a new normal for U.S. trade: an era where tariffs are a routine tool rather than an exceptional measure. While policymakers frame this as a method to protect domestic industries and assert leverage internationally, the practical effect on businesses, supply chains, and global trade dynamics is significant. Adaptation, resilience, and flexibility are likely to remain essential for survival in this evolving trade landscape.