Key Points:
- The Supreme Court struck down President Trump’s broad global tariffs.
- Retail groups celebrated the ruling for bringing certainty to supply chains.
- Trump immediately announced a new 10% global tariff using different laws.
- Retailers now demand refunds for the unconstitutional duties they paid.
The retail industry celebrated a major victory Friday after the Supreme Court struck down President Donald Trump’s sweeping global tariffs. The National Retail Federation praised the ruling, saying it gives businesses much-needed certainty. They argued that removing these high import costs helps companies stabilize their complex supply chains.
The court ruled that Trump overstepped his authority by using emergency economic powers to tax foreign goods. This decision removes a massive financial burden from stores nationwide. However, the trade fight continues.
Just hours later, Trump pushed back. He announced a new 10% global tariff using different legal methods. The retail federation acknowledged the president still has options, but they noted these new methods face stricter legal limits and require more hurdles.
Now, a massive question looms: will the government refund the money companies already paid? Retailers urged the courts to create a fast refund process. Businesses could use this returned cash to lower prices, hire workers, or upgrade operations. Some companies already taken action. In December, warehouse giant Costco sued the administration to demand a full refund, fearing it would lose the money regardless of the ruling.
Certain sectors felt the tariff impact heavily. The United States imports nearly 100% of its footwear. Matt Priest, CEO of the Footwear Distributors and Retailers of America, called the court decision a huge win. He noted his members feel optimistic but still have pressing questions about pending shipments and returning funds.
Despite the celebration, analysts urge caution. Steven Shemesh, an analyst for RBC Capital Markets, called true predictability a “pipe dream.” He warned that the administration remains focused on trade, meaning new tariffs will inevitably appear.
