Tariffs: What You Need to Know
On Friday, the US Supreme Court struck down a number of tariffs issued by President Trump in the 6-3 decision. The ruling focuses narrowly on tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Here’s what it means:
- Scope is limited. The decision affects only tariffs issued under IEEPA authority, which is roughly half of the administration’s tariff actions. Tariffs imposed under other statutes remain in place.
- Refunds are unresolved. The Court invalidated the use of IEEPA for these tariffs but did not address whether the federal government must refund importers. In 2025, tariff collections were estimated to exceed $142 billion.
- Canadian trade is largely unchanged. The 35% tariff on certain Canadian goods imposed under IEEPA is impacted. However, goods qualifying under the United States–Mexico–Canada Agreement were already exempt, and sector-specific tariffs on autos, steel, and lumber remain intact.
What’s next: These tariffs were the underpinning to several trade agreements with other countries. Because this decision is so fresh, we haven’t seen how other countries will respond.
On Saturday, the president signed an executive order imposing a 15% tariff on imports from all countries. The new tariffs are issued under the Trade Act of 1974, which restricts them to 150 days and a rate no higher than 15%.
This information is provided by the Grand Rapids Chamber of Commerce. Their advocacy partnership allows us to keep our members informed and up-to-date with topics that affect the business community.