The Supreme Court of the United States. AP/Yonhap News.

As the Supreme Court deliberates on whether tariffs imposed by U.S. President Donald Trump on global trade partners are legal, the Trump administration is preparing alternative tariff measures in case of an unfavorable ruling, Bloomberg reported on November 22 (local time).

According to the report, U.S. officials familiar with the matter stated that the Department of Commerce and the U.S. Trade Representative's Office (USTR) have been studying "Plan B" options to prepare for a potential loss and are working to establish alternative measures to replace the current tariffs as swiftly as possible post-ruling.

White House Deputy Press Secretary Kush DeSai said, "President Trump has legally exercised the emergency tariff authority granted to the administration by Congress, and the administration is confident of a final victory in the Supreme Court." He added, however, "The administration is always reviewing new approaches to address America's historic trade deficit and bring back manufacturing industries crucial to our national and economic security to the United States."

This move by the Trump administration comes as the Supreme Court, with its conservative majority, displayed a generally skeptical view of Trump's reciprocal tariff policy during the first oral arguments held on November 5, leading to speculation of a potential loss.

From another perspective, Bloomberg's analysis suggests this indicates President Trump's intention not to abandon his tariff policy even if he loses the Supreme Court case.

An anonymous U.S. official stated, "Tariffs will remain a core element of Trump's economic policy, regardless of the Supreme Court's decision."

Scott Lincicome, deputy director of the right-leaning Cato Institute, also told Bloomberg, "My expectation is that they will reinstate (the tariffs) immediately. Basically, they will restore all measures."

In the event of a Supreme Court loss, Bloomberg mentioned Section 232 of the Trade Expansion Act, Sections 301 and 122 of the Trade Act, and Section 338 of the Tariff Act as potential alternative measures to reciprocal tariffs.

Section 232 of the Trade Expansion Act grants the President the authority to restrict imports through appropriate measures, including tariffs, if the import of specific items is deemed to threaten national security through investigations by relevant departments.

Section 301 allows for broad retaliatory measures, such as tariffs, against trading partners engaging in unfair and discriminatory trade practices with the United States, following a period of notification and public comment. Section 122 permits the imposition of tariffs of up to 15% for up to 150 days to address a serious U.S. trade deficit.

Section 338 of the Tariff Act empowers the President to impose tariffs of up to 50% on imports from countries that discriminate in their trade with the United States.

However, the alternative measures the Trump administration is considering may face challenges, including slower implementation, limited scope compared to the authority President Trump has exercised thus far, and the potential for further litigation.

In particular, Section 338 of the Tariff Act has never been used before, creating potential for new legal disputes.

Furthermore, new tariff imposition measures may be difficult for President Trump to implement due to their individual limitations.

Bloomberg pointed out, "Officials will need to resolve new legal issues, such as whether Section 122 tariffs can be imposed simultaneously and whether they can be applied retroactively to avoid refunding tariffs collected under the current system."

Yonhap News Agency