The retail industry said Friday that the Supreme Court’s ruling invalidating some of President Donald Trump’s global tariffs will increase predictability and flexibility for innovation and relieve companies from the burden of higher import costs.
“The Supreme Court’s announcement today on tariffs provides much-needed certainty for American businesses and manufacturers, allowing global supply chains to operate without ambiguity,” the National Retail Federation said in a statement after the ruling. “Clear and consistent trade policies are essential to economic growth and create jobs and opportunities for American families.”
The country’s highest court has ruled that President Trump’s sweeping tariffs on U.S. trading partners, enacted under the International Emergency Economic Powers Act (IEEPA), exceed the president’s authority. The Supreme Court ordered the suit to be dismissed for lack of jurisdiction and sent the case back to the lower court.
But the reversal has raised new questions about whether retailers and U.S. consumers will feel the economic impact meaningfully. It’s unclear if, when and how the government will refund tariffs already paid, or whether President Trump intends to impose other types of tariffs that would hurt retailers and their importers.
“We urge the lower courts to ensure a seamless process for returning tariffs to U.S. importers,” the NRF said in a statement. “Refunds act as an economic boost, allowing businesses to reinvest in their operations, employees and customers.”
NRF represents numerous U.S. retailers, including major retailers such as: walmart Also for small brands and manufacturers. Apparel, footwear and discretionary goods are among the imports most vulnerable to President Trump’s tariffs, which imposed hefty tariffs on countries such as China and Vietnam, where the retail industry maintains much of its supply chain.
While awaiting the Supreme Court’s decision, warehouse club giant Costco filed a lawsuit against the Trump administration in December seeking a full refund of the duties it paid and a continued injunction on import duties.
In a lawsuit filed in the U.S. Court of International Trade, Costco said it risks losing the money it has already paid even if the Supreme Court rules against the tariffs.
Costco did not immediately respond to a request for comment about the Supreme Court’s ruling and what it means for the retailer’s case.
Footwear is one of the hardest-hit industries because nearly 100% of footwear sold in the U.S. is imported, according to the Footwear Distributors and Retailers of America, an industry trade group.
Even before the Trump administration’s first term, footwear manufacturers were shifting some sourcing away from China as the workforce dwindled, said Matt Priest, CEO of FDRA. But he said it would be impractical to move production back to the U.S. and moving it to other parts of Asia could be difficult.
Priest said in a statement Friday that the decision marks “an important step toward creating a more predictable and competitive environment for U.S. businesses and consumers.”
“By eliminating these broad-based tariffs, the footwear industry can free up billions of dollars for innovation, job creation, and increased affordability for families across the country,” Priest said. “This ruling brings relief at a time of significant cost pressures and paves the way for continued collaboration between industry leaders and policymakers to ensure trade policy reflects today’s global markets.”
The trade group said it will continue to work with the Trump administration and Congress to create a trade framework that benefits consumers, retailers and manufacturers.
Stephen Shemesh, a retail analyst at RBC Capital Markets, said Friday’s ruling was largely positive for the retail industry, but the idea that it would bring greater predictability and lower costs was likely to be a “pipe dream.”
“This administration is pretty adamant about tariffs and trade balances, and I’m sure if it doesn’t get done this way, it’ll get done another way,” he said. “It may look different, it may look different, it may look different, it may look different, it may look different in shape, it may look different in size, it may smell different, but I think it ends up being similar.”
President Trump denounced the ruling on Friday, but at a press conference he referred to sectoral tariffs under Section 232 of the Trade Expansion Act, saying, “We have an alternative,” and announced a basic tariff rate of 10% worldwide.
