The Supreme Court struck down a bunch of Trump's tariffs. Now what?

Key takeaways

The Supreme Court's ruling declared Trump's sweeping tariffs illegal, changing how tariffs can be imposed under US law.
Businesses are hopeful for refunds due to the ruling, but the process and eligibility remain unclear.
A new market for trading potential tariff refunds has emerged, particularly benefiting companies seeking immediate cash flow.
Trump's announcement of new tariffs shows that while some regulations were struck down, the overall landscape of tariffs may continue to evolve.

Summary

Supreme Court Ruling on Trump's Tariffs

In a landmark decision, the US Supreme Court ruled that the sweeping tariffs imposed by President Trump are illegal. This decision ends a prolonged period of uncertainty about whether these tariffs, created under the International Emergency Economic Powers Act (IEPA), were lawful.

Implications for Businesses and Refunds

With the Supreme Court ruling, businesses like Cara Dyer's are hopeful for refunds on the tariffs they paid. However, the court's decision did not provide clear guidance on how to recover these costs, leaving many unsure about the process and if they will see their money returned.

Tariff Refund Market Emerges

As businesses seek to navigate the refund process, a new market has arisen where companies can pre-sell their potential tariff refunds to hedge funds and other investors. This evolving market has seen significant interest, particularly among retail sectors affected by the tariffs.

Future of Tariffs and Trade Laws

Despite the ruling, other tariffs remain in place, and Trump announced a new 10% tariff under a different law. Experts anticipate a complex future regarding tariffs and legal challenges that might arise from these developments.

Show notes

Live event info and tickets here.

The Supreme Court has spoken. Those big, sweeping tariffs that President Trump imposed early last year? They’re illegal.

On today’s show: Why were those tariffs struck down? Will anyone get refunds? And …what about this new 10 percent tariff the President just announced today?

Plus — a growing market for tariff refunds.

Further Listening:

- Worst. Tariffs. Ever.
- Tariffs: What are they good for?
- What "Made in China" actually means
- The 145% tariff already did its damage
- Are Trump's tariffs legal?
- Days of our Tariffs
- Trump's backup options for tariffs
- What would it mean to actually refund the tariffs?

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This episode was hosted by Jeff Guo, Mary Childs, and Sarah Gonzalez. It was produced by Sam Yellowhorse Kesler and Willa Rubin. It was edited by Marianne McCune. It was fact-checked by Sierra Juarez. Alex Goldmark is Planet Money’s executive producer.

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