The retail industry said Friday that a Supreme Court ruling striking down some of President Donald Trump’s global tariffs will provide more predictability and relieve companies from the burden of higher import costs.
“The Supreme Court’s announcement today on tariffs provides much-needed certainty for American businesses and manufacturers, allowing global supply chains to operate without ambiguity,” the National Retail Federation said in a statement after the ruling. “Clear and consistent trade policies are essential to economic growth and create jobs and opportunities for American families.”
The country’s highest court has ruled that President Trump’s sweeping tariffs on U.S. trading partners, enacted under the International Emergency Economic Powers Act (IEEPA), exceed the president’s authority. The Supreme Court has sent the case back to a lower court for dismissal.
But the reversal raises new questions about whether retailers and U.S. consumers will meaningfully feel the economic impact and whether the decision will increase or reduce uncertainty.
Just hours after the ruling was handed down, President Trump denounced the ruling and said his administration had “alternative plans,” citing sectoral tariffs and announcing a new 10% global tariff.
It is also unclear whether, when, and how the government will refund tariffs already paid and deemed unconstitutional.
“We urge the lower courts to ensure a seamless process for returning tariffs to U.S. importers,” the NRF said in a statement. “Refunds act as an economic boost, allowing businesses to reinvest in their operations, employees and customers.”
NRF represents numerous U.S. retailers, including major retailers such as: walmart Also for small brands and manufacturers.
In an interview with CNBC on Friday afternoon, NRF Executive Vice President of Government Relations David French acknowledged that retailers continue to face other tariffs and could face new ones based on President Trump’s statements.
“The president has many other tariff tools in his toolbox, and we certainly expect him to use these tools to advance tariff policy and maintain leverage in negotiations with other countries,” he said. “The good thing about today’s ruling is that it takes one tool away from him and brings a little more certainty to the customs process.”
Compared to Trump’s extensive use of IEEPA, the substitute tariffs the president imposed Friday “have inherited limitations,” French said. Some of these tariffs are time-limited or require governments to clear additional hurdles.
And if companies receive a refund of the duties they pay, they can use that money to invest in their own businesses, hire more workers or lower prices, he said.
He said the industry group “hopes that the president will come to the conclusion that it is in everyone’s best interest to issue refunds as quickly and as easily as possible,” which could also help Trump ahead of the midterm elections.
In December, warehouse club Costco sued the Trump administration, seeking a full refund of the duties it paid and a continued injunction on import duties.
In a lawsuit filed in the U.S. Court of International Trade, Costco said it risks losing the money it has already paid even if the Supreme Court rules against the tariffs.
Costco did not respond to a request for comment about the Supreme Court’s ruling and what it means for the retailer’s case.
Stephen Shemesh, a retail analyst at RBC Capital Markets, said Friday’s ruling was largely positive for the retail industry, but the idea that it would bring greater predictability and lower costs was likely to be a “pipe dream.”
“This administration is pretty adamant about tariffs and trade balances, and I’m confident that if we don’t get it done this way, we’ll get it done another way,” he said ahead of President Trump’s announcement of new tariffs. “It may look different, it may look different, it may look different, it may look different, it may look different in shape, it may look different in size, it may smell different, but I think it ends up being similar.”
apparel and footwear
Apparel, footwear and discretionary goods are among the imports most vulnerable to President Trump’s tariffs, which imposed hefty tariffs on countries such as China and Vietnam, where the retail industry maintains much of its supply chain.
Footwear is one of the hardest-hit industries because nearly 100% of footwear sold in the United States is imported, according to the industry group Footwear Distributors and Retailers of America.
Even before President Trump’s first term, footwear manufacturers were moving some of their sourcing out of China due to a shrinking workforce, said Matt Priest, CEO of FDRA. However, he said it would be impractical to bring production back to the United States and it may be difficult to move it to other parts of Asia.
In an interview with CNBC on Friday, Priest said the decision is a step towards more predictability for the footwear industry, as it limits the tariffs President Trump can impose to “less broad” ones and may require input from Congress.
“Even though there is still some degree of uncertainty, we are not in a position where there are going to be exorbitant tariffs,” he said.
The industry group, which includes well-known footwear companies and brands such as Nike, Crocs and Puma, held an emergency video conference with 325 companies on Friday afternoon. Priest said industry group members are optimistic, but also have many questions. In it, Members asked when refunds would be available and when IEEPA tariffs would be formally suspended, specifically whether this would affect shipments arriving in the coming days.
Priest said he does not expect refunds to be issued immediately and that the industry group is instructing members not to issue refunds. He said the group’s work continues and is working with the Trump administration and Congress to push for a “more surgical and thoughtful approach” to tariffs.
In a conference call with industry group members, Priest said there was “some optimism that this part of this journey is at least somewhat being redirected,” calling the ruling a “win” for the industry.
However, he added that there is “a long way to go” as refunds and other details have not yet been disclosed.
