The Future of Tariffs: Navigating the Supreme Court’s Recent Ruling and What It Means for Your Business
- Schulz Trade Law
- 2 days ago
- 2 min read
The Future of Tariffs: Navigating the Supreme Court’s Recent Ruling and What It Means for Your Business
Unpacking the legal shift in trade policy, the 15% workaround, and the fight for $175 billion in tariff refunds.
In a landmark decision that has sent shockwaves through the global trade community, the Supreme Court recently ruled 6-3 that certain tariffs implemented by the executive branch were illegal. The court’s message was clear: the power to levy tariffs belongs to Congress, not the President. This ruling has left $175 billion in collected revenue hanging in the balance and sparked a new executive order aimed at a 15% tariff "workaround."
To help make sense of this legal whirlwind, trade law expert Michelle Schulz of Schulz Trade Law joined WLW Radio’s Scott Sloan to discuss the implications for businesses, consumers, and the future of international trade.
The Power Shift: Why the Supreme Court Sided with Congress
The core of the Supreme Court's ruling rests on the separation of powers. For decades, the executive branch has utilized specific trade laws—such as the International Emergency Economic Powers Act (IEEPA)—to implement tariffs. However, the court has now drawn a hard line, stating that unilateral implementation overstepped constitutional boundaries.
"This is not your job. This is a job of Congress," Michelle explains, summarizing the court's definitive stance. "The power to tax and the power to set tariffs is a Congressional power, and the President can't just take it under the guise of an emergency."
The $175 Billion Question: Will Companies Get Their Money Back?
With the Supreme Court declaring the IEEPA tariffs illegal, the immediate question for many businesses is: What happens to the money we already paid? Currently, the U.S. Treasury is sitting on approximately $175 billion in revenue collected under the now-invalidated rules.
"It’s not an automatic refund," Michelle warns. "Companies have to be proactive. If you haven't filed a protest or a claim, the government isn't just going to mail you a check. You have to go after it legally."
The 15% Workaround and the Impact on Your Wallet
The legal victory for opponents of the tariffs was short-lived. In response to the ruling, the administration pivoted to Section 122 of the Trade Act, implementing a 15% "surcharge" as a workaround. This ensures that trade tensions—and the resulting costs passed on to consumers—remain high.
"We’re in a game of legal Whac-A-Mole," says Michelle. "One door closes and the administration opens another. For the business owner, it means the 15% is still there, just under a different name, and you have to adjust your pricing all over again."
Take Action: Is Your Business Owed a Refund?
The Supreme Court ruling has opened a narrow window for companies to seek redress for illegally collected tariffs. Don't leave your hard-earned capital in the hands of the Treasury. If your business has been impacted by recent tariff hikes, you need expert guidance to determine your eligibility for a refund and to navigate the new 15% executive order.
Contact Schulz Trade Law today to protect your bottom line.
Trade on, but trade informed!
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