The Supreme Court hearing on the president’s authority to impose tariffs took an intense turn, as U.S. Trade Secretary Scott Bessent expressed strong confidence in the government’s case. According to Bessent, the Solicitor General made a “powerful case” in favor of presidential powers, while the opposing side “fell flat on their face.” He noted that the administration would not discuss a “Plan B” if the court ultimately rules against them, signaling firm confidence in their position.

When asked about the president’s statement that the case was one of “life and death,” Bessent elaborated that the fight against fentanyl trafficking was at the heart of that remark. “If you want to talk about life and death, let’s talk about the fentanyl terrorists,” he said. He emphasized that the administration’s actions had brought China to the negotiating table, cutting fentanyl-related activities by nearly half. “For the first time, the Chinese have agreed to work with the U.S. on controlling all precursor chemicals,” he stated.

Bessent further explained that the president’s firm tariff stance had given the U.S. crucial negotiating leverage. He mentioned that after China threatened export controls on rare earth magnets — essential for cameras and iPhones — the president’s 100% tariff threat successfully deterred Beijing. “Sometimes the best tariffs are the ones that never get imported,” Bessent said, underscoring that tariffs were as much a foreign policy tool as an economic one.

Addressing economic concerns, Bessent claimed that the administration’s top priority was to stop what he called “Biden’s inflation.” Citing an MIT study, he noted that 42–44% of inflation came from the “huge budget deficit” run up by the previous administration. “We’ve brought the deficit down, gas prices are down, interest rates are down, and I believe we have a great economic story to tell,” he said.

Bessent, who also serves as IRS Commissioner, announced several tax relief measures, including no tax on tips, overtime, and Social Security, as well as deductibility of auto loans. He added that Americans would see “very substantial refunds” in the first quarter, leading to real wage increases. “There’s affordability on one side and wage growth on the other,” he remarked, asserting that real wages for working Americans have already started improving.

On the issue of gold prices, Bessent dismissed concerns that recent drops could hurt the U.S. dollar. “We don’t focus on the gold price,” he said. “Our focus is on maintaining the fundamentals that keep the U.S. dollar as the world’s reserve currency.”

When asked about the ongoing budget stalemate, Bessent called on “five brave moderate Democratic senators” to cross party lines and “open up the government.” He reaffirmed that the administration was ready to negotiate once the government was reopened.

Clarifying the administration’s position on tariff revenues, Bessent said that tariffs are a “shrinking ice cube.” “The goal isn’t to generate revenue but to bring back manufacturing,” he explained. “As domestic production rises, tariff income will naturally fall while income tax receipts go up. The ultimate goal is balance.”

Bessent also touched on regional economic disparities, noting that affordability issues in states like New Jersey and New York stem from local energy policies. “A lot of the problems lie with state governments,” he said, citing governors Phil Murphy and Kathy Hochul for high energy prices.

Looking ahead, Bessent said he expects 2026 to be a “gang year” for the U.S. economy, predicting strong affordability and wage growth. “We are already seeing much stronger real wage growth for working Americans than we ever did under the Biden administration,” he concluded confidently.

As for the Supreme Court case, Bessent reiterated his confidence: “The Solicitor General made a great case. At one point, the opposing attorney had to admit that the president could embargo a country but not impose a 1% tariff — which is completely nonsensical,” he said.

Disclaimer:This article is based on statements made by U.S. Trade Secretary Scott Bessent during his media interaction following the Supreme Court hearing. The information reflects his viewpoints and public remarks and should not be construed as legal or financial advice.