Supreme Court Weighs Tariff Authority: What a Ruling Could Mean for Importers
- Schulz Trade Law
- 1 hour ago
- 3 min read
Supreme Court Weighs Tariff Authority: What a Ruling Could Mean for Importers
Michelle Schulz explains the legal limits of presidential tariff power and what businesses should prepare for now.
On This Morning with Gordon Deal, Michelle Schulz, founder and managing partner of Schulz Trade Law, joined the program as the U.S. Supreme Court prepared to issue a potential ruling on the legality of President Trump’s global tariffs.
At the center of the case is a fundamental question: can the president impose sweeping tariffs unilaterally under emergency powers, or does that authority rest with Congress? Michelle outlined the legal stakes, possible outcomes, and why importers should focus on what they can control amid uncertainty
What the Supreme Court Is Really Deciding
Michelle explained that the case hinges on the president’s use of the International Emergency Economic Powers Act (IEEPA), a statute traditionally used for export controls and national security—not taxation.
“The main question is whether the President has the authority to impose tariffs unilaterally, without Congress, in an emergency situation—and whether this is actually an emergency.”
While the administration argues that trade deficits qualify as an emergency, Michelle noted that the Supreme Court has expressed skepticism, questioning whether this interpretation grants the executive branch power that cannot be meaningfully restrained.
“It was giving the President power that we can’t get back… and we should not authorize it.”
What Happens If the President Wins—or Loses
If the Court sides with the administration, Michelle warned that importers hoping for refunds will be disappointed.
“If the president wins, then all the folks who have been clamoring to prepare to get refunds will be out of luck.”
If the president loses, however, the implications are significant. U.S. Customs and Border Protection would be required to issue refunds for unlawfully collected duties—an enormous administrative task.
“If the president loses, then Customs will have to issue refunds… you’re going to see a lot of people coming to Customs requesting refunds.”
Michelle noted that Customs has already begun updating its automated systems, potentially in anticipation of large-scale refund processing.
Why a Loss Wouldn’t End Tariffs Altogether
Even if the Supreme Court strikes down the IEEPA-based tariffs, Michelle cautioned that this would not mark the end of tariffs as a policy tool. The administration retains multiple alternative authorities.
“He has other options, and he’s using those options already.”
These include tariffs imposed under national security statutes (such as steel and aluminum) and unfair trade practice provisions like Section 301. New investigations—particularly into sectors such as semiconductors—could quickly lead to additional duties under different legal frameworks.
What Importers Should Be Doing Right Now
With outcomes uncertain, Michelle emphasized focusing on fundamentals that are fully within an importer’s control.
“Make sure you have everything correct… getting your value and your tariff code correct is something you can be working on now to make sure you’re not overpaying by accident.”
Accurate classification, valuation, and compliance can prevent unnecessary overpayment regardless of how the Court rules.
Whether tariffs are upheld, overturned, or reimposed under new authority, trade compliance mistakes can be costly.
Schulz Trade Law helps importers navigate uncertainty, prepare for potential refunds, and ensure duties are calculated correctly in a rapidly changing trade environment. Contact us to learn how we can help.
Trade on, but trade informed!
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