Trump Supreme Court Tariff Decision: Retail Industry Reaction

A Supreme Court ruling that struck down some of President Donald Trump’s global tariffs would lead to greater predictability and flexibility for innovation, freeing companies from the burden of rising import costs, the retail industry said Friday.

“Today’s Supreme Court announcement on the tariffs provides much-needed certainty for American 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 opportunity for American families.”

The nation’s highest court decided that Trump’s broad tariff rates on U.S. trading partners enacted under the International Emergency Economic Powers Act, or IEEPA, exceeded the president’s authority. The Supreme Court remands the case to the lower court with instructions to dismiss for lack of jurisdiction.

This decline raises major questions about the path to recovering tariffs that have already been paid, and whether Trump will seek to enact different trade controls.

“We urge the lower court to ensure a smooth process for refunding customs duties to American importers,” the NRF said in its statement. “The refunds will be an economic boost and allow businesses to reinvest in their operations, employees and customers.”

NRF represents a number of retailers in the United States, from large retailers such as Walmart To brands and small manufacturers. Clothing, shoes and discretionary goods were among the imports most vulnerable to Trump’s tariffs, which imposed exorbitant prices on countries like China and Vietnam, where the retail industry holds large parts of its supply chain.

Matt Priest, CEO of Footwear Distributors and Retailers of America, said in a statement that the decision represents “an important step toward creating a more predictable and competitive environment for American businesses and consumers.”

“By removing these broad definitions, the footwear industry can redirect billions of dollars toward innovation, job creation, and affordability for families across the country,” Priest said. “This ruling provides relief at a time when cost pressures are significant, and opens the door to continued collaboration between industry leaders and policy makers to ensure that trade policy reflects today’s global market.”

The trade group said it will continue to work with the Trump administration and Congress to create a trade framework that benefits consumers, retailers and manufacturers.

Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said the ruling is “welcome news” for businesses and consumers.

“Over the past year, the Chamber has worked with small and medium-sized businesses across the country that have experienced significant cost increases and supply chain disruptions as a result of these tariffs,” Bradley said in a statement. “Fast refunds of disallowed tariffs will make sense for more than 200,000 small business importers in this country and will help support stronger economic growth this year.”