The retail industry on Friday said the Supreme Court’s ruling that struck down some of President Donald Trump’s global tariffs would usher in more predictability and free up businesses from the burden of higher import costs.
“The Supreme Court’s announcement today regarding tariffs provides much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity,” the National Retail Federation said in a statement following the ruling. “Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families.”
The nation’s highest court determined that Trump’s broad tariff rates on U.S. trade partners enacted under the International Emergency Economic Powers Act, or IEEPA, overstepped the president’s authority. The Supreme Court is sending the case back to the lower court for dismissal.
Yet the reversal has raised fresh questions about whether retailers and U.S. consumers will meaningfully feel a financial impact and if the decision means more uncertainty or less.
Just hours after the ruling was handed down, Trump condemned the ruling and said his administration has “alternatives,” referencing sector-specific tariffs and announcing a new, global tariff rate of 10%.
It’s also unclear if, when and how the government may refund tariffs that have already been paid and were deemed unconstitutional.
“We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers,” the NRF said in its statement. “The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”
The NRF represents a number of U.S. retailers, from big-box retailers such as Walmart to smaller brands and manufacturers.
In an interview with CNBC on Friday afternoon, David French, executive vice president of government relations for NRF, acknowledged that retailers continue to face other tariffs and may face new ones, based on Trump’s remarks.
“The president has lots of other tariff tools in the toolbox ,and we certainly expect he will use these tools to advance his tariff agenda and maintain leverage in negotiations with other countries,” he said. “The good thing about the ruling today is it takes one of the tools away from him and will build a little bit more of certainty into the tariff process.”
Compared with Trump’s broad use of IEEPA, alternative tariffs that the president imposed on Friday “have inherit limitations,” French said. Some of those tariffs would come with time limits or require the administration to clear additional hurdles.
And, he said, if companies get a refund of tariffs they paid, they could put it toward investing in their businesses, hiring more workers or lowering prices.
He said the trade group is “hopeful the president comes to the conclusion that getting the refunds out as quickly and as simply as possible would be in everybody’s best interest” — noting it could also…
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