Photo taken on July 1, 2024 shows the U.S. Supreme Court in Washington, D.C., the United States. (Photo by Aaron Schwartz/Xinhua)
Supreme Court justice Brett Kavanaugh warned the repayment process could become a “mess.” U.S. President Donald Trump signaled protracted litigation ahead. “I guess it has to get litigated for the next two years,” he said, predicting court fights could stretch on for five years.
BEIJING, Feb. 21 (Xinhua) — Global markets have applauded the U.S. Supreme Court’s decision to invalidate the U.S. administration’s unilateral tariffs, yet businesses and trade partners remain uneasy amid uncertain future U.S. tariffs.
In a 6-3 decision, the Supreme Court on Friday determined that the executive branch exceeded its authority by invoking emergency powers to levy import taxes on most trading partners, declaring many of the previous year’s tariffs illegal. In response, U.S. President Donald Trump signed an executive order to impose 10 percent tariffs on imported goods from all countries.
Businesses and U.S. trading partners are calling for greater clarity and consistency in American trade policy. For many, the ruling is less an endpoint than a pause in a prolonged period of volatility for global commerce.
“GREAT ALTERNATIVES”
The Supreme Court said that the tariff policies under the International Emergency Economic Powers Act (IEEPA) are unconstitutional, officially striking down the global tariffs Trump has introduced since April 2025.
The justices ruled that the president did not have the authority under the IEEPA to impose import tariffs on goods from nearly all the U.S. trading partners. The voting upheld that it is the right of Congress to impose taxes, not the president.
The levy lift, however, does not affect sector-specific duties on steel, aluminum and automotive sectors.
“We have alternatives, great alternatives,” Trump said. “Could be more money. We’ll take in more money and we’ll be a lot stronger for it,” Trump said of the alternative tools.
The alternative, following what he called “deeply disappointing” ruling, was 10 percent tariffs on imported goods from all countries, imposed under Section 122 of the Trade Act of 1974.
Section 122 allows the president to impose duties of up to 15 percent for up to 150 days on any and all countries to address “large and serious” balance of payments issues. After 150 days, Congress would need to approve their extension.
Despite the 150-day cap, Trump said that the administration would initiate section 301 investigations “to protect our country from unfair trading practices of other countries and companies,” which could lead to permanent tariffs.
CAUTIOUS OPTIMISM
The Supreme Court’s decision drew swift applause from U.S. political and business communities, who said it would ease pressure on American households and companies strained by higher import costs.
“American families and American businesses pay American tariffs – not foreign countries,” former U.S. Vice President Mike Pence wrote on the social platform X. “With this decision, American families and businesses can breathe a sigh of relief.”
Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, called the ruling “welcome news for businesses and consumers.”
Dan Anthony, executive director of the We Pay the Tariffs coalition, described it as “a tremendous victory for America’s small businesses who have been bearing the crushing weight of these tariffs.”
U.S. trading partners harmed by the broad tariff measures over the past year also responded positively.
Photo taken on Dec. 2, 2025 shows the White House in Washington, D.C., the United States. (Xinhua/Hu Yousong)
Canada-U.S. Trade Minister Dominic LeBlanc said on X that the ruling “reinforces Canada’s position that the IEEPA tariffs imposed by the United States are unjustified.”
Ontario Premier Doug Ford urged continued efforts to remove other duties that remain in place, including tariffs on autos, steel, aluminum and forestry products.
In Europe, business leaders and officials welcomed the ruling but remain cautious over uncertain future tariffs, emphasizing the need for clarity.
The European Union is seeking “clarity on the steps they intend to take in response to this ruling,” European Commission deputy chief spokesperson Olof Gill said, calling for “stability and predictability” in transatlantic trade.
Andy Prendergast, national secretary of Britain’s GMB Union, told the BBC that businesses and workers “need certainty” and that the manner in which the tariffs were imposed had created “chaos” and cost jobs.
CAN IT LAND?
Stock markets in the United States and abroad briefly surged following the ruling — a rebound tempered by deeper concerns over uncertainty surrounding future tariffs, as businesses and policymakers renewed calls for clarity and consistency in U.S. trade policy.
U.S. stocks closed higher Friday, with the Dow Jones Industrial Average gaining 230.81 points, the S&P 500 rising 47.62 points and the Nasdaq Composite climbing 203.34 points.
Markets abroad also reacted. Canada’s S&P/TSX Composite Index swung between gains and losses after jumping as much as 0.5 percent immediately following the decision. In Europe, France’s CAC 40 briefly crossed the 8,500-point mark for the first time.
The longer-term impact, however, remains unclear.
Companies in the United States and overseas have begun seeking refunds on more than 133 billion U.S. dollars in import duties collected under last year’s emergency tariffs.
Supreme Court justice Brett Kavanaugh warned the repayment process could become a “mess.” Trump signaled protracted litigation ahead. “I guess it has to get litigated for the next two years,” he said, predicting court fights could stretch on for five years.
California Governor Gavin Newsom called for immediate repayment with interest, saying “every dollar unlawfully taken must be refunded.” A coalition of U.S. small businesses, We Pay the Tariffs, launched a nationwide campaign urging “full, fast and automatic” refunds, drawing hundreds of signatures.
Beyond the question of reimbursement, U.S. trading partners had qualms about future tariffs. German Engineering Federation warned that a 15 percent duty on European Union imports could be revived and that the administration retains other legal tools to impose trade restrictions. “German businesses must be prepared,” said Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry.
Analysts also cautioned that tariff disputes tied to earlier renegotiations could resurface. Economists noted that countries in the Global South such as Zimbabwe, which cut tariffs to zero on U.S. goods under pressure, may see limited benefit from the ruling, given persistent trade imbalances. ■
