Supreme Court Tariff Ruling Update

Message from the Executive Director

What Small Businesses need to know after the recent Supreme Court’s Tariff Ruling

Small business owners plan for a lot of things: staffing changes, supply chain delays, Western New York weather, etc. What they do not generally anticipate is the possibility that a federal policy affecting their costs could later be determined to be unlawful.

Recently, the U.S. Supreme Court struck down the Trump Administration’s tariffs that were imposed under the International Emergency Economic Powers Act (IEEPA). In short, the Court determined that those tariffs were not legally authorized under the statute.

For hundreds of thousands of small businesses across the country, including many in our immediate area, that decision is significant.

Since those tariffs were initiated in early 2025, the federal government has collected approximately $130 billion under IEEPA. In its filing with the Court, according to the U.S. Chamber of Commerce, the Department of Justice stated that if the tariffs were found to be illegal, the government would refund them. Now that the Court has ruled, commitment matters.

What does this mean for our local small businesses?

It potentially opens the door for refunds. “The normal course of action is that people should get refunds for the tariffs that they paid. The federal government collected these taxes illegally; they now must refund them to people,” explained Neil Bradley, U.S. Chamber of Commerce Chief Policy Officer, during a recent briefing to chambers across the United States.

But this is important; there is currently no official process in place for businesses to file a claim for reimbursement.

The U.S. Chamber of Commerce is urging the administration to make the refund process as straightforward and accessible as possible. And that’s critical. Small businesses don’t have in-house trade attorneys or compliance teams. They need a clear, transparent system.

“We saw that the administration was raising some questions about how (refunds) would work, about how long it would take, and whether there would be litigation, so one of the things we’re really encouraging is for the administration to make this a simple process for small businesses. Hundreds of thousands of small businesses paid these tariffs last year; the tariffs were illegal according to the Supreme Court, and so people should get a refund, and we should make that process as simple as possible,” Bradley said.

And as you might expect, figuring out whether your business qualifies and how much you may have paid won’t necessarily be simple. Many of these tariffs were often embedded in import costs, invoices, and supply contracts. Untangling that will require clarity from the federal government.

There’s also an unfortunate reality we need to acknowledge: scams have already begun to surface.

Because there is no official refund process yet, no one can legitimately file a claim on your behalf at this time. If you are contacted by someone offering to “secure your tariff refund” for a fee, that is a red flag. Do not pay anyone to reclaim funds when there is no formal mechanism in place.

It’s also important to note that tariffs themselves have not disappeared.

“The long story short is that tariffs haven’t gone away, they’ve simply shifted the legal authority for those tariffs,” according to Bradley.

While the Supreme Court struck down the tariffs imposed under IEEPA, other tariffs remain in effect under different legal authorities. So, this decision does not mean the end of tariffs altogether. It means a specific set of tariffs was found unlawful.

As business leaders, what should you do right now?

  • Stay informed.
    • Review your records so you understand whether you paid IEEPA-based tariffs.
    • Be cautious about third-party offers.
    • Watch for official guidance from federal agencies.

For many businesses, margins are tight and cash flow matters. If refunds are issued, they could represent meaningful dollars coming back into our local economy. Dollars that can be reinvested in employees, inventory, expansion, or simply stability.

Our role has always been to advocate for a fair and predictable business climate. At the Chamber level, we’ll continue to monitor developments and share updates as soon as there is clarity.

In the meantime, stay cautious, stay patient, and don’t let anyone rush you into a “solution” that doesn’t yet exist.

Sincerely,

Victoria Sturman
Executive Director
Greater East Aurora Chamber of Commerce