Will Small Businesses Get Their Money Back?

"The Framers gave 'Congress alone' the power to impose tariffs during peacetime. Accordingly, the President must 'point to clear congressional authorization' to justify his extraordinary assertion of that power. And he cannot. This Supreme Court ruling directly addressed the constitutional limits on executive authority regarding trade policy, establishing that unilateral tariff imposition by the President violates the separation of powers doctrine."

"The tariffs cost each American household $1,800 in 2025, slowing GDP growth by 0.5 percentage points and raising the unemployment rate by 0.3 percentage points. Companies had to scramble, reroute, and rejigger—in particular, small firms, which have less negotiating power and access to capital than their larger competitors, and often operate on thinner margins. Many firms faltered. A few failed."

"I exhaled for the first time in 11 months. I got emotional. This reaction from a small business CEO captures the profound relief experienced by business leaders upon learning the Supreme Court had invalidated the tariff policies that had created sustained economic uncertainty and operational challenges for their companies."

President Trump unilaterally imposed tariffs on imports from numerous countries over the past year, repeatedly adjusting rates and creating significant economic disruption. These tariffs cost American households approximately $1,800 in 2025, reduced GDP growth by 0.5 percentage points, and increased unemployment by 0.3 percentage points. Small businesses faced particular hardship due to limited negotiating power and capital access. Trade-law experts challenged the tariffs' legality, and the Supreme Court ultimately agreed, ruling that the Constitution grants Congress alone the power to impose tariffs during peacetime. Chief Justice Roberts stated the President must point to clear congressional authorization for such extraordinary assertions of power, which he cannot. Business leaders like Jonathan Silva experienced relief upon learning the decision, though uncertainty remains about implementation and consequences.

Read at The Atlantic