Supreme Court Struck Tariffs Down. Most Small Businesses Still Owed Cash.
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The Supreme Court tossed key tariffs imposed under the International Emergency Economic Powers Act. That looks like a win on paper. The practical win is tiny.
The government collected more than $130 billion using national emergency powers. That money didn't vanish. It flowed into government coffers while Main Street got stuck paying higher input costs and passing those increases to customers.
Who actually gets paid back?
Refunds exist. But they are narrow, technical, and mean-tested by paperwork. Only tariffs applied under the IEEPA are eligible — the ones industry calls 'fentanyl,' 'trafficking,' 'reciprocal,' or 'baseline' tariffs. And only the entity that directly paid the tariff to U.S. Customs can claim a refund.
Translation: if you're a small business buying goods from a U.S. distributor who absorbed the tariff and raised your invoice, you probably didn't pay the tariff directly. You took the hit. You won't get a check under the current ruling.
Small businesses got crushed
Rates jumped. They jumped overnight. Suppliers changed routing, contract terms, and lead times without warning. Richard Trent of the Main Street Alliance — which represents more than 30,000 small businesses — nailed it: the administration framed these tariffs as strength. For thousands of small operators, it was chaos.
Higher prices existed everywhere. Inventory carrying costs climbed. Margins eroded. For businesses that operate on thin margins and tight cash, that is not an abstract hurt. It is insolvency risk.
The legal win is not a return to status quo
The Supreme Court decision is a dent in the armor. It exposes the overreach of emergency tariff powers. It doesn't automatically refill small-business coffers. The U.S. Chamber of Commerce is watching how refunds will be handled. Expect a slow, bureaucratic process. Expect fights over who qualifies. Expect litigation.
There is also a political angle that needs calling out. Politicians sold these levies as leverage. In practice they became a hidden tax on American business and consumers. That's not management. That's offloading risk onto the people who can least absorb it.
What this means and what to do about it
My read on this is blunt: the sunshine from the Court only helps those who can show clear proof they paid. Most small shops will get nothing. You need a plan that protects cash, margins, and supply lines right now.
Do these things today:
1) Audit import paperwork. If you or your business entity paid customs duties directly, gather entry numbers, bills of lading, and payment receipts. Don't wait.
2) Talk to a customs broker or trade attorney. There are processes for remission and protests. The law is technical. Professionals get results. Cost is an investment, not a luxury.
3) Price for reality. Restore margin where you can. Raise prices in clear, justified steps. Customers will complain. Your margins are non-negotiable.
4) Diversify suppliers and nearshore where practical. Move inventory closer if you can. Lower your exposure to sudden policy swings.
5) Join the fight. Support trade groups or Main Street Alliance campaigns pushing Congress for refunds or relief. Public pressure works when it hits wallets and headlines.
The Supreme Court did the right thing on principle. On the ground, the fix is partial and slow. If you run a business that got hit by these tariffs, act like your margins depend on it — because they do.
Reed Calloway — watch the paperwork, lock the supply chain, and get your claim ready. Time is not on the side of the small business owner who assumes the money will find them.
