Businesses face uncertainty as Trump races to replace tariffs struck down by SCOTUS : NPR

LEILA FADEL, HOST:

The federal government overnight stopped collecting money from President Trump’s tariffs – the emergency tariffs. This is a few days after the Supreme Court ruled that these import taxes were illegal. The Trump administration is moving quickly to replace banned tariffs with new ones, creating a new wave of uncertainty. Scart from NPR (ph) – sorry, Scott. NPR’s Scott Horsley joins us now. Sorry about that.

SCOTT HORSLEY, BYLINE: Hello, Leila.

FADEL: Hello. So, will American companies that pay these tariffs save money now?

HORSLEY: Well, some will. Some may not. I spoke with Jay Foreman, whose Basic Fun! The company imports Lincoln logs, Tonka trucks and other toys, primarily from China. It has already sought a $7 million refund for rates that the Supreme Court ruled were wrongly collected. Many other companies are doing the same, but President Trump quickly announced a new round of import taxes. So while Foreman expects his rates bill to be lower this year, he doesn’t think it will be zero.

JAY FOREMAN: You can’t fall asleep with this president. And nothing was more true than what happened between Friday and Saturday, that is to say waking up in the morning with the trial, and then the absence of tariffs. Then at noon, rates 10%, then go to bed and wake up the next morning, rates 15%.

HORSLEY: That 15% global tariff announced by Trump on Saturday represents a reduction for goods from China, but for goods from other countries like the United Kingdom, it would actually be a tax increase. From now on, this price is temporary. It is set to expire in five months, unless Congress votes to extend it, importantly, just before the midterm elections. So, you know, for companies trying to plan for back to school or the second half of 2026, there are a lot of question marks.

FADEL: Yeah. What other tariffs is the president considering, and would they offset those the high court struck down?

HORSLEY: Well, there are several laws that the president could use here. He used it during his first term to tax imported steel and aluminum, for example, or to punish China for what he called unfair trade practices. These laws come with additional conditions, but trade expert Kathleen Claussen of Georgetown says they could give the president the building blocks needed to recreate the tariff while the Supreme Court overturns it.

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KATHLEEN CLAUSSEN: Ultimately, he could probably piece together something very close, if not identical, frankly, to what he’s done so far. This is not to say that we may not have any more legal challenges in court. But on the surface, I think the president could try to replicate what he’s already done using these other laws.

HORSLEY: But Claussen says it’s really unpredictable how these pieces might come together and how that might affect our various trading partners. And unpredictable, Leila, is not a word investors like to hear. The Dow Jones Industrial Average fell more than 800 points yesterday.

FADEL: You said that these other tariff laws came with conditions. What kind of ropes?

HORSLEY: For example, the law that Trump is using to tax steel and aluminum imports. It’s specifically designed to protect national security. So Marc Busch, who was an advisor to the Department of Commerce and a US trade representative, says this may not apply to all other types of imports.

MARC BUSCH: It’s really difficult to understand how wooden furniture and bathroom furniture constitute national security concerns.

HORSLEY: Another section of the tariff law aims to crack down on unfair trade practices. But it would be difficult to argue that every other country in the world has deceived the United States. So there are some limits, but, as we’ve seen, this president is willing to push the limits to the point where the courts or Congress stands up and says, “No more.” It is also possible that some trading partners will start to react in ways they have not done so far. The European Union this week postponed a vote on a trade deal with the United States and, finally, customers and voters will have their say on whether they think Trump’s tariffs have been a plus or a minus for their wallets.

FADEL: This is NPR’s Scott Horsley. Thanks, Scott.

HORSLEY: Thank you, Leila.

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