Source: Fortune.com
Summary
The US Supreme Court ruled that President Donald Trump’s emergency powers cannot be used to impose tariffs on US companies. The 6-3 decision is a setback for the White House, but the court did not address whether companies can recoup the estimated $133 billion they paid in tariffs. The decision leaves companies waiting months to learn if they will get a refund. The Trump Administration may challenge any refund ruling, potentially leading to another legal battle.
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The numbers tell one story.
Costco filed a preliminary lawsuit to preserve its rights to a refund, a savvy strategy that has been imitated by over 1000 other companies. The company’s petition may allow it to stop Customs from declaring it cannot pay part of a refund. Trade lawyers expect the Customs agency to keep collecting emergency tariffs for the coming days or weeks. The Trump Administration may seek to re-impose tariffs under other laws.
The announcement sounds like a familiar delay tactic.
Companies will likely have to wait months to get any refund, and the Trump Administration may challenge any refund ruling, setting off another potential legal battle. The outcome is far from clear, and the refund issue is poised to return to the International Trade Court.
The strategy enters a familiar phase.
The Supreme Court’s silence on the refund issue was unexpected, and the Trump Administration’s next move is uncertain. One thing is clear: companies will have to wait and see how the situation unfolds.
Trump’s emergency powers are being tested, and the outcome is a major setback for the White House. But the real question is: what’s next?
Author: Evan Null
