Supreme Court to Decide Fate of Trump’s Tariffs
Michelle Schulz Explains What’s at Stake
Trade attorney Michelle Schulz breaks down the upcoming Supreme Court case that could reshape U.S. tariff authority—and what it means for businesses, consumers, and refund claims.
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The Supreme Court Showdown
In early November, the U.S. Supreme Court will hear two pivotal cases challenging President Trump’s authority to impose “reciprocal tariffs” without congressional approval. Michelle Schulz, founder of Schulz Trade Law, explained that these tariffs—applied country by country with a baseline of 10%—represent roughly half of all tariffs currently in effect.
“The Supreme Court may decide that it is unlawful for the President to impose these tariffs without congressional approval,” Schulz said. “We’re waiting to see, and it could turn out that the government owes refunds.”
The key legal question: can a president use emergency powers to declare trade imbalances an “emergency”?
“He’s using the International Emergency Economic Powers Act,” Schulz noted, “but that act was intended for use in an emergency. Trade negotiations or unfair trade practices—many people don’t consider that an emergency.”
Potential Refunds—and a Bureaucratic Maze
If the Supreme Court rules against the administration, the federal government could owe billions in tariff refunds. But as Schulz explained, getting that money back would be a slow process.
“In the past, customs issued paper checks. I believe they’re now working on an automated system, but I don’t think it will be quick. Importers will have to come in, make their case, and hope for the best,” she said. “It could take a long time—if they ever receive a refund.”
For small businesses, Schulz cautioned, pursuing a refund might not even be worth the effort.
“We’ve seen companies that paid more than the value of their merchandise, in which case it might be worth it,” she said. “But customs is not going to be eager to hand over that money.”
Consumers Could Feel the Ripple
While the legal focus is on importers, Schulz warned that consumers are also part of the equation.
“Distributors and manufacturers are flowing down the cost to consumers and including that in their contracts,” she explained. “If you contractually agreed to take it on with no out clause, it could become a contract issue—and you may end up a consumer with the need for a lawyer.”
Even if the Supreme Court limits the president’s tariff power, some trade barriers will likely remain.
“Specific tariffs like on steel and automobiles will stay,” Schulz noted, “because they’re under Section 232 of the Trade Expansion Act of 1962, aimed at national security.”
The Supreme Court’s ruling could redefine how tariffs are imposed and who pays the price—literally.
If your company imports goods or materials, now is the time to prepare. Contact Schulz Trade Consulting today to assess your tariff exposure, evaluate refund potential, and plan for any shifts in enforcement following the Court’s decision.
Trade on, but trade informed!