BREAKING NEWS: The Supreme Court has struck down most tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the law does not grant the President authority to impose broad tariffs without congressional approval. As a result, the IEEPA-based tariffs are invalidated moving forward.
The landmark ruling could have major implications for electronics brands and manufacturers navigating volatile cost structures and supply chain strategies. While the tariffs have been struck down, manufacturing leaders shouldn’t celebrate just yet.
“Don’t pop the champagne cork yet,” Director of Engineering at PwC Jen McCabe said. “There will certainly be continued judicial and other political maneuvers to follow.”
Reuters estimates more than $175 billion could be subject to refunds. Payments would go to importers, and dozens of companies have already filed refunds. That said, Justice Brett Kavanaugh highlighted the lack of clear refund guidance in his dissent opinion.
Industry experts caution that potential refunds are expected to be slow and complex. Importers should not assume repayments are guaranteed or imminent. The road to refunds is long, “not hours, not days, perhaps not even months — years,” McCabe said.
For importers and manufacturers, the recommendation is clear: avoid making hasty changes to forecast or supply chain while tariff exposure continues to evolve, according to Director at BPE Global Gabrielle Griffith.
“Meanwhile, ear to the ground on IEEPA refunds,” Griffith said. “Talk to your customs brokers about how they will execute in the event it comes to fruition. Especially if you’ve been using couriers.”
McCabe agrees that manufacturers should not assume refunds are coming, and to prepare the executive teams for either scenario. She suggests holding off on adding refunds to balance sheets until the refund is physically in-hand.
“Continue to make sound strategic choices based on your particular set of operational concerns, cadences, and conditions,” McCabe said.
In short: stay steady, stay prepared, and plan for either outcome.
