What the tariff ruling by the high court means for Long Island consumers

The U.S. Supreme Court dealt a major blow to the Trump administration’s economic agenda by ruling that the president had overstepped his authority by imposing sweeping tariffs on nearly every country around the globe, including many of our close allies.

Here are some questions — and answers — about the high court’s decision and its impact for Long Island and beyond.

What did the court’s ruling say?

By a 6-3 vote, the court said the Trump administration could not use a 1977 law, the International Emergency Economic Powers Act, to justify import taxes on trading partners.

The IEEPA gives the president the authority to take economic actions to deal with "any unusual and extraordinary threat" to national security. President George W. Bush invoked IEEPA after 9/11 to block assets of foreign individuals linked to terrorism, and in 2015, President Barack Obama used the law against foreign hackers. Trump is the only president to use IEEPA to justify tariffs on consumer goods.

Does the court’s ruling mean all tariffs will be lifted?

No, the SCOTUS decision only applies to the country-specific tariffs imposed by the Trump administration under the IEEPA. Other tariffs, such as levies on automobiles and steel, are not impacted.

Does the decision mark the end of Trump’s ambitions to remake the economy with tariffs?

The president could invoke other statutes to impose tariffs on foreign goods, although some of those avenues permit only temporary tariffs. Justice Brett Kavanaugh, who joined Justice Clarence Thomas and Justice Samuel Alito in opposing the court’s decision, provided a road map for future actions the administration might take in his dissent.

Does the Supreme Court ruling mean prices for consumer goods will tumble?

Probably not. The administration is unlikely to abandon its embrace of tariffs. Companies will be reluctant to lower prices due to the uncertainty surrounding the tariffs. Also, many companies stocked up on imports last year, hoping for some wiggle room before they had to raise prices to compensate for Trump’s tariffs. The Supreme Court’s ruling, however, may have prevented future price increases.

Will the Trump administration have to refund tariffs to importers?

Some companies, anticipating Friday’s SCOTUS decision, began the legal legwork to obtain refunds last year from the government. The Supreme Court, however, has not provided any clarity about what should happen to the more than $200 billion in tariffs the Trump administration has collected since early 2025.

What’s next?

The court’s decision means chaos and confusion over international trade will continue. The Trump administration is expected to invoke other federal legislation to pursue tariffs. Consumers will continue to express concerns about tariff’s impact on affordability. The decision may mean Trump’s talk of using tariff funds to distribute $2,000 dividend checks to Americans — a proposal that has never been fully fleshed out, never mind approved by Congress — is doomed.