The retail industry said Friday that the Supreme Court’s ruling striking down some global tariffs imposed by President Donald Trump would bring more predictability and flexibility to innovation, freeing businesses from the burden of higher import costs.
“Today’s Supreme Court announcement regarding tariffs provides much-needed certainty to American businesses and manufacturers, allowing 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 to economic growth because it creates jobs and opportunities for American families.”
The nation’s highest court has determined that Trump’s sweeping 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 sends the case back to the lower court with instructions to dismiss it for lack of jurisdiction.
This reversal raises the question of if, when and how the government will be able to refund tariffs already paid, and whether Trump will apply other types of duties that hit retailers and their imports.
“We urge the lower court to ensure a transparent process for refunding tariffs to U.S. importers,” the NRF said in its statement. “The refunds will serve as an economic stimulus and allow businesses to reinvest in their operations, employees and customers.”
While awaiting the Supreme Court’s decision, warehouse club giant Costco sued the Trump administration in December for a full refund of the tariffs it had paid and to prevent import duties from continuing.
In the complaint filed in the U.S. Court of International Trade, Costco said it stood to lose money it had already paid, even if the Supreme Court ruled against the tariffs.
Costco did not immediately respond to request for comment on the Supreme Court’s ruling and what it means for the retailer’s lawsuit.
The NRF represents a number of U.S. retailers, including big-box retailers such as Walmart to small brands and manufacturers. Clothing, shoes and discretionary items were among the imports most vulnerable to Trump’s tariffs, which imposed high tariffs on countries like China and Vietnam, where the retail sector maintains much of its supply chain.
The footwear industry has been one of the hardest hit, as nearly 100% of all shoes sold in the United States are imported, according to Footwear Distributors and Retailers of America, the industry trade group.
Even before Trump’s first term, shoe manufacturers were moving some of their supply sources out of China as the workforce shrank, said Matt Priest, CEO of the FDRA. He said, however, that it would be unrealistic to bring production back to the United States and that moving it to another part of Asia could prove difficult.
In a statement Friday, Priest said the move marked “an important step toward creating a more predictable and competitive environment for American businesses and consumers.”
“By removing these across-the-board tariffs, the footwear industry can redirect billions of dollars toward innovation, job creation and affordability for families across the country,” Priest said. “This decision provides relief at a time of significant cost pressures, and it opens the door to continued collaboration between industry leaders and policymakers to ensure trade policy reflects today’s global marketplace.”
The trade group said it would continue to work with the Trump administration and Congress to create a trade framework that would benefit consumers, retailers and manufacturers.
Other private sector groups also welcomed the Supreme Court’s decision Friday. Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said the move was “good news” for businesses and consumers.
“Over the past year, the Chamber has worked with small and medium-sized businesses across the country who have experienced significant cost increases and supply chain disruptions due to these tariffs,” Bradley said in a statement. “Promptly refunding unacceptable tariffs will be meaningful for this country’s more than 200,000 small business importers and help support stronger economic growth this year.”