The Supreme Court has just delivered a major blow to former President Donald Trump’s global tariffs, ruling that his administration exceeded its authority. While this decision might sound like a relief, it actually ushers in a fresh wave of uncertainty for US businesses and international trade.
For years, these tariffs have generated a staggering $133.5 billion from various imports. Now deemed illegal, the big question is: what about refunds? Don’t expect a quick payout. Experts predict a lengthy legal battle, with thousands of companies already suing individually to get their money back. It’s a complex process that could drag on for years in lower courts, as the Supreme Court left the refund issue for others to decide.
But the plot thickens. Almost immediately after the ruling, Trump vowed to impose *new* tariffs, this time using different legal avenues. Initially, he plans a temporary 10% duty under Section 122 of the Trade Act of 1974, which only lasts 150 days. Following that, he aims for more lasting duties through new investigations of “unfair trade practices.”
This means businesses should brace for continued volatility. While the Supreme Court’s ruling removes one of Trump’s fastest tools for imposing broad tariffs, the overall tariff landscape remains unpredictable. The good news? Some economists believe this “reset” could ultimately lead to lower overall tariff rates and a more orderly approach to future trade policies. For now, however, the global trade stage is set for more twists, turns, and negotiations, as partners weigh their next moves.
