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Supreme Court ruling sparks cautious optimism among businesses
American and Canadian firms react to the US Supreme Court's decision to invalidate President Donald Trump's sweeping tariffs, though uncertainty over refunds and future trade policies lingers.
Mixed reactions from business owners
Jenelle Peterson, founder of Canadian toy manufacturer Wild Life Outdoor Adventures, saw potential in the ruling but remained wary. Her company, which produces goods in China, faced a 25% profit cut last year due to Trump's tariffs. While relieved, she hesitated to celebrate fully, citing unresolved questions about refunds and alternative tariff measures.
"For us, every percentage point matters," Peterson said. "But I have a bit of reservation in too much celebration."
Legal victory tempered by lingering trade risks
The Supreme Court's decision targeted tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA). However, Trump announced plans to introduce a 10% global tariff under a separate statute, raising concerns among business leaders.
Rick Woldenberg, CEO of Learning Resources, called the ruling a "major victory" but criticized the administration's persistence in pursuing alternative tariff policies. "If the government is bound and determined to try to harm us through excessive taxes, I'm sure they'll find a way," he told the BBC.
Economic impact and market response
Despite the ruling, the average effective tariff rate remains at 9.1%, the highest since 1946 excluding 2025, according to Yale University's Budget Lab. Trade associations, including the National Retail Federation and the US Chamber of Commerce, welcomed the decision but urged a smooth refund process for affected importers.
Financial markets reacted modestly, with the S&P 500 rising 0.7% and the Nasdaq up 0.9%. Analysts attributed the muted response to ongoing uncertainty about future trade policies. "The sector winners and losers from this news depend on whether and how rebates are processed," said Lauren Goodwin of New York Life Investments.
Consumer costs and long-term concerns
Small businesses, already strained by tariffs, expressed hope for stability. John Arensmeyer of the Small Business Majority noted that while the ruling was a step forward, tariffs had already caused "significant and irreparable harm."
Peterson, who held prices steady for six months, eventually raised the cost of a knot-tying game from $14.99 to $19.99. She hoped the ruling would allow her to reverse the increase, emphasizing the damage caused by fluctuating tariff policies.
"It sends a really good message that we can't have these insane fluctuations in tariff rates and economic policy," she said.
Future trade policy uncertainty
Economists warned that even if the administration replicates tariff levels using other statutes, sector-specific and country-specific changes could create new disruptions. Michael Pearce of Oxford Economics highlighted the potential for renewed trade policy uncertainty.
Trump's Friday announcement of a planned 10% global tariff under a different legal authority underscored the ongoing risks for businesses and consumers alike.
