The U.S. Supreme Court invalidated President Trump’s broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA), marking a significant shift in presidential trade authority. The 6-3 ruling determined that Trump lacked the legal basis to enforce sweeping tariffs using emergency powers meant for national crises, disrupting established trade policies and setting new limits for executive action.

This decision has far-reaching economic consequences, particularly for Black-owned businesses, over half of which reported declining sales due to the tariffs’ inflationary effects on imported goods and supply chains. These businesses, already vulnerable to market fluctuations, absorbed much of the financial burden during the tariff period, underscoring concerns about the disproportionate impact such policies can inflict on minority-owned enterprises.

Following the Supreme Court’s ruling, the Trump administration attempted to reinstate tariffs through Section 122 of the Trade Act of 1974, citing “fundamental international payment problems.” This replacement imposed a 10% global import surcharge intended to last 150 days but faced immediate legal challenges and restrictions. The Court of International Trade later ruled the Section 122 tariffs unlawful for the parties involved but did not extend relief to all importers nationwide, leaving ongoing uncertainty for many businesses.

Domestic businesses and consumers bore the brunt of these tariffs, as approximately 90% of costs translated into higher prices and operational expenses. Companies reliant on imported materials faced rising input costs, which trickled down through the economy. After the IEEPA tariffs were nullified, affected companies became eligible to pursue refunds estimated between $130 billion and $175 billion.

In response, the Court of International Trade ordered Customs and Border Protection (CBP) to refund these unlawful tariffs. CBP implemented the Consolidated Administration and Processing of Entries (CAPE) system, creating a central platform for businesses to submit refund claims efficiently. The dispute over tariff legality continues to unfold amid litigation challenges and political debate over appropriate checks on executive trade powers.