New York — Businesses are facing a new wave of uncertainty yet The Supreme Court struck down the tariffs Imposed by President Donald Trump under the Emergency Powers Act, Trump has vowed to circumvent the ruling to maintain his tariffs.
The Trump administration says its tariffs help boost American manufacturers and narrow the trade gap. But many American companies were forced to do so Raising prices And adjust in other ways to compensate High costs resulting from tariffs.
It remains to be seen how much relief businesses and consumers will actually get from Friday’s ruling. Within hours of the court’s decision, Trump pledged to use a different law to impose a 10% tariff on all imports for 150 days, and to explore other ways to impose additional tariffs on countries he says engage in unfair trade practices.
“Any boost to the economy from tariff cuts in the near term is likely to be partly offset by a prolonged period of uncertainty,” said Michael Pearce, an economist at Oxford Economics. “With the administration likely to rebuild tariffs through other, more sustainable means, the overall tariff rate may end up stabilizing near current levels.”
The effort to recover the estimated $133 billion to $175 billion in tariffs previously collected and now considered illegal is bound to be complex, and is likely to favor larger companies with more resources. Consumers are hoping for a refund It is unlikely to be compensated.
With Trump’s uncompromising stance on tariffs, many companies are bracing for years of court battles.
Basic Fun, a Florida-based maker of toys like Lincoln Logs and Tonka Trucks, last week joined a slew of other companies in a lawsuit seeking to recover tariffs paid to the government.
While company CEO Jay Foreman is concerned about any new tariffs Trump might impose, he doesn’t think they will impact gaming. However, he said, “I’m concerned about some kind of permanent fight over this, at least for the next three years.”
The new 10% tariffs announced by Trump on Friday immediately raised questions for Daniel Posner, owner of Grapes The Wine Co., in White Plains, New York. Since wine shipments take about two weeks to cross the Atlantic, he wonders if the shipment arriving Monday will be affected.
“We are reacting to what has become a very unstable situation,” Posner said.
Ron Cornick owns Superior Coffee Roasting Co. In Sault Ste. Marie, Michigan, across the border from Canada. In addition to the US tariffs, Cornick faced retaliatory tariffs from Canada for much of last year when he exported his coffee.
“It’s like a nightmare that we just want to wake up from,” said Cornick, whose company has raised prices by 6% twice since the tariffs took effect. While he is happy with the Supreme Court’s ruling, he doesn’t think he will ever see the money back.
A wide range of industries, including the retail, technology and agricultural sectors, used the Supreme Court ruling as an opportunity to remind Trump of how his trade policies affect their businesses.
The Business Roundtable, a group that lobbies on behalf of more than 200 U.S. companies, issued a statement encouraging the administration to limit the focus of tariffs on specific unfair trade practices and national security concerns.
In the retail industry, stores of all stripes have adopted different approaches to offset the effects of tariffs — from absorbing some of the costs themselves, to cutting expenses and diversifying their supply network. However, they were forced to pass on some price increases at a time when shoppers were particularly sensitive to inflationary pressures.
Dave French, executive vice president of government relations at the National Retail Federation, the nation’s largest retail industry trade group, said he hopes lower courts will ensure a “seamless process” for the tariff recovery. This issue was not addressed in Friday’s ruling.
For the technology sector, Trump’s tariffs have caused a major headache. Many of its products are manufactured abroad or rely on imports of key components. Computer & The Telecommunications Industry Association, which represents a group of technology companies that employ more than 1.6 million people, expressed hope that the decision would ease trade tensions.
“With this decision behind us, we look forward to greater stability in trade policy,” said Jonathan McHale, ITU’s vice president for digital trade.
Farmers, who have been affected by higher equipment and fertilizer prices since the tariffs took effect, and reduced demand for their exports, also spoke.
“We strongly encourage the president to avoid using any other available powers to impose tariffs on agricultural inputs that would increase costs,” said Zibby Duvall, president of the American Farm Bureau Federation.
The Supreme Court ruled by a vote of 6 to 3 that the International Emergency Economic Powers Act does not give the president the authority to tax imports, a power that belongs to Congress. But the decision only affects tariffs imposed under this law, so some industries will not see any relief at all.
The decision leaves tariffs in effect on steel, upholstered furniture, kitchen cabinets and bathroom sinks, according to the Home Furnishings Association, which represents 15,000 furniture stores in North America.
At Revolution Brewing in Chicago, the aluminum they use in the cans costs the same as the components that go inside them because Trump’s tariffs on metals are not affected by the Supreme Court ruling. While the cans are made in Chicago, the aluminum comes from Canada, said Josh Deth, managing partner at the brewery.
Tariffs were just one of the challenges facing his company, which is also affected by volatile barley prices and slowing demand for craft beer.
“It all piles up,” he said. “The beverage industry needs a break here. We are under pressure because of aluminum prices.”
Italian winemakers, hit hard by the tariffs, greeted the Supreme Court’s decision with skepticism, warning that the decision could deepen uncertainty about trade with the United States.
The United States is Italy’s largest wine market, with sales having tripled in value over the past 20 years. New EU tariffs, which the Trump administration initially threatened would be 200%, sent fear throughout the industry, which remained even after the United States reduced, delayed and negotiated lower tariffs.
“There is a very high risk that tariffs will be re-imposed through alternative legal channels, as well as the uncertainty that this ruling may generate in trade relations between Europe and the United States,” said Lamberto Frescobaldi, president of the UIV, a trade association representing more than 800 winemakers.
Elsewhere in Europe, initial reactions focused on renewed turmoil and confusion regarding the costs facing companies exporting to the United States.
Carsten Brzeski, an economist at ING Bank, said Trump’s tariffs could affect medicines, chemicals and auto parts. He said: “Europe should make no mistake. This ruling will not bring relief.” “The legal authority may be different, but the economic impact may be the same or worse.”
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Anne DiNocenzio in New York; Dee Ann Durbin in Detroit; Michael Liedtke in San Francisco; David McHugh in Frankfurt, Germany; Jonathan Mathis in Nashville, Tennessee; Adrian Sainz in Memphis, Tennessee; Nicole Winfield in Rome contributed to this report.