"The Supreme Court made clear on Friday that President Donald Trump lacks the legal authority to use his emergency powers to force U.S. companies to pay tariffs. In its 6-3 decision, the court delivered a massive setback to the White House but, in a surprise to legal observers, it failed to address the question that is top of mind for many firms: Will they be able to recoup the money, estimated at around $200 billion, they have already paid under a policy that has now been ruled illegal?"
"In the court's long-awaiting decision, Chief Justice John Roberts ruled that Trump could not impose emergency levies-like the ones that imposed 25% duties on Canada and Mexico-since the tariffs amounted to a sort of tax that only Congress had the power to impose. This upheld the rulings of lower courts, which found the tariffs to be illegal, but allowed them to stay in place until the Supreme Court weighed in on the matter."
"According to Jeff Harvey, a Texas-based trade lawyer at Bradley, the court's silence on the refund issue was unexpected since it had come up explicitly at oral arguments-where Justice Amy Coney Barrett first referred to the potential for a "mess"-and in lower court proceedings. "I was surprised since it was something previously raised by the Court of International Trade," said Harvey, referring to the court whose initial ruling the Trump Administration challenged."
Supreme Court ruled 6-3 that President Donald Trump lacked legal authority to use emergency powers to impose tariffs on U.S. companies. Chief Justice John Roberts wrote that the levies, including 25% duties on Canada and Mexico, functioned as a tax reserved to Congress, upholding lower court findings that the tariffs were illegal. The Court declined to rule on whether companies can recoup about $200 billion already paid. Trade lawyers say the silence on refunds means businesses may wait months for clarity and the matter will return to the Court of International Trade. Justice Brett Kavanaugh warned the refund process is likely to be "a mess."
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