How Will US Supreme Court's Decision On Trump's Emergency Tariffs Impact The Country's Economy

Washington DC: The US economy is expected to face major consequences after the country's Supreme Court struck down President Donald Trump's emergency tariffs. Following the Supreme Court's decision, importers are now expected to demand refunds from the U.S. Customs and Border Protection agency. The payback can potentially cost the American government $175 billion.

The tariffs were imposed in April as part of Trump's ‘Liberation Day’ agenda, which was claimed to address the US trade deficit and protect domestic industries. Trump had invoked the International Emergency Economic Powers Act (IEEPA) to impose the emergency tariffs. However, the Supreme Court has now concluded that Trump exceeded his authority in imposing the tariffs since IEEPA reserved for national emergencies. It stated that the IEEPA does not authorize the US President to impose tariffs.

The decision causes the majority of tariffs imposed on goods since last year as “unlawful”, null and void. Hence, companies that have paid the tariffs can now seek refunds from the Treasury Department. It is reported that more than 1,000 companies like Costco have already sued Trump.

‘Messy’ Process

US Supreme Court Justice Brett Kavanaugh, while presenting his dissenting opinion, said, “The Court’s decision is likely to generate other serious practical consequences in the near term. One issue will be refunds. Refunds of billions of dollars would have significant consequences for the U. S. Treasury.”

He added, “The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a mess.”

Uncertainty Over Trade Deals

Kavanaugh also warned that the Supreme Court's decision can generate uncertainty over existing trade deals. “Because IEEPA tariffs have helped facilitate trade deals worth trillions of dollars—including with foreign nations from China to the United Kingdom to Japan, the Court’s decision could generate uncertainty regarding various trade agreements. That process, too, could be difficult.”

Meanwhile, California Governor Gavin Newsom hailed the court's order and said, “Time to pay the piper, Donald. These tariffs were nothing more than an illegal cash grab that drove up prices and hurt working families, so you could wreck longstanding alliances and extort them.” He added, "Every dollar unlawfully taken must be refunded immediately — with interest. Cough up!”

Also Read- BIG BREAKING: US Supreme Court Deals Blow To Trump's Tariffs, Strikes Down Economic Agenda