President Trump reacts to SCOTUS tariff decision to lower tariffs
After expressing disappointment with the SCOTUS tariff decision, President Donald Trump announced that he had signed an order imposing 10% tariffs worldwide.
The Supreme Court ruled on February 20 that the president did not have the authority to impose many of the steep tariffs he implemented last year, a welcome reprieve for small businesses that took out loans, raised prices or delayed payments.
Now they want their money back.
Shortly after the decision, a coalition of 800 small and medium-sized businesses known as “We Pay the Tariffs” released a national petition calling for “full, prompt, and automatic” refunds on tariffs.
“They took out loans just to keep their doors open. They froze hiring, canceled expansion plans, and watched their savings evaporate to pay tariffs that weren’t in their budgets or business plans,” Dan Anthony, executive director of the group that pays the tariffs, praised the ruling in a statement. “But without real relief for the companies that paid these duties, legal victories are meaningless.”
The Supreme Court has ruled that the tariffs imposed by President Donald Trump using the International Emergency Economic Powers Act of 1977 are illegal, but the concurring opinion did not address whether the administration would have to return the billions of dollars it generated last year. This gray area is likely to lead to a lengthy legal battle, said Michael Pearce, chief U.S. economist at Oxford Economics.
At a press conference after the decision, President Trump said he would sign an order implementing 10% tariffs worldwide under a separate authority. Asked if the Trump administration would honor the refund, he said, “Ultimately, it’s going to be fought in court for the next five years.”
Treasury Secretary Scott Bessent, speaking at the Dallas Economic Club, said IEEPA tariff revenue is “in dispute” and it could take weeks, months or even years to figure out who gets it.
“I feel like the American people are not going to understand that,” Bessent said.
Tariffs will hit small and medium-sized businesses in many ways.
Prior to the ruling, some small and large companies, including Costco, Revlon, and Goodyear Tire, had already entered the courtroom hoping to secure refund rights if the Supreme Court rules against President Trump’s tariffs. However, not all companies can participate in legal battles.
In 2025, tariffs forced small businesses to make difficult decisions. John Arensmeyer, founder and CEO of Small Business Majority, said some businesses limited or shut down operations, while others passed on higher costs to consumers.
“Small businesses are struggling, but larger companies have more flexibility to absorb increased overhead costs and the power to negotiate tariff exemptions, allowing them to keep prices low and hurt smaller competitors,” Ahrensmeyer said in a statement.
Melkon Khosrovian, spirits maker and co-founder of Greenbar Distillery in Los Angeles, said he was “excited, but still a little hesitant” after the ruling. He said he doesn’t have the wherewithal to sue to secure his right to a refund, but he hopes other lawsuits will set a precedent that applies to his business.
Why the verdict is “too late” for some
Khosrovian told USA TODAY in December that the company was preparing to lay off 15 full-time and part-time employees to save money after tariff costs more than doubled last year.
After the Feb. 20 ruling, Khosrovian said even with the refund, he would not be able to keep his three staff members employed. In response to rising customs costs last year, the small business invested approximately $400,000 in equipment to automate parts of its workflow to reduce labor costs in the long term to cover the increase in import taxes. He said it was now “too late” to recoup that investment.
“It was a huge investment, but we did it because we couldn’t find a solution,” Kosrovyan said. “This is the only way to control costs, and once the investment is made, there is no way to justify spending that money without reducing overhead in some way.”
Tariffs and customs payments continue
After the ruling, President Trump vowed to do everything in his power to implement similar tariffs in other ways. He said at a news conference that he intends to impose a 10% tariff around the world using Section 301 of the Trade Act of 1974, which gives the Office of the United States Trade Representative the authority to impose tariffs at the president’s discretion in response to actions by foreign governments that burden or restrict U.S. commerce.
Mr. Trump has other options. Trade lawyer Greg Husisian said there was “100% certainty” the administration would pivot to other authorities. In the meantime, he says businesses still need to pay IEEPA fees. To stop them, he said, U.S. Customs and Border Protection would have to issue a notice saying it would no longer collect them, but that is unlikely until all lawsuits are resolved.
“The Supreme Court did not close the case, so it specifically said, ‘We are sending the case back to the International Trade Court to act on our opinion,'” Husisian said. “It is also possible that the International Trade Court may issue a comprehensive injunction ordering the return of all IEEPA duties, which would automatically result in their return.”
Although uncertainty remains, the Feb. 20 ruling provides “kind of a long-term vision of what’s going on,” said Jacob Bennett, CEO and co-founder of Crux Analytics, a small business banking platform.
“Despite these changes, positive sentiment remains strong across the small business economy,” Bennett said. “For business owners who are importing more goods, this could be considered a big win and will ultimately lead to higher profits, especially this year.”
Contact Rachel Barber at rbarber@usatoday.com and follow her at X @rachelbarber_
