Trump’s tariffs were struck down. Georgia businesses wonder what’s next.
The Supreme Court on Friday struck down President Donald Trump’s expansive international tariffs, a signature pillar of his administration’s economic agenda that upended global trade and dominated business discourse in Georgia.
The 6-3 decision found Trump’s tariffs, many of which were imposed under an emergency powers law without congressional approval, were illegal and must be revoked. Some Georgia business owners expressed approval of the court’s decision, though also unease for what’s to come.
The import taxes and “reciprocal” tariffs the president levied against dozens of countries were used to remake American trade deals and prod foreign investment into the U.S. Tariffs are taxes on imported goods and the business or person importing the product typically pays the tax.
Georgia is home to two of the country’s busiest seaports, the world’s busiest airport and 16 Fortune 500 companies clustered in the Atlanta area, which led to an outsized impact from Trump’s tariff campaign. The tariffs are estimated to have cost Georgia businesses and consumers $13 billion as of December, the fourth-most of any state, according to Trade Partnership Worldwide and small business activist coalition We Pay the Tariffs.
Brandon Eley said Friday he was feeling cautiously optimistic after the ruling. Eley is the president of LaGrange-based 2BigFeet, an online retailer and manufacturer of large shoes for men. His line of shoes, which range from size 14 to 25, are manufactured in Brazil. Manufacturing in the U.S., even with the tariffs, has not been economically viable, he has said.
Since the institution of Trump’s trade policies, Eley said he hasn’t been able to place an order in more than a year because of the tariffs.
Friday’s ruling is changing that.
“We’re going to try to take the opportunity to get some products manufactured as quickly as we can, and hopefully we can get them in before something else is imposed,” Eley said, noting that the Trump administration had mentioned before the Supreme Court ruling that it would explore other means to impose tariffs if they were struck down.
The landmark ruling leaves open the question of what happens to the revenue the federal government collected via tariffs now deemed to have been illegal.
“Refunds of billions of dollars would have significant consequences for the U.S. Treasury,” Justice Brett Kavanaugh wrote in his dissenting opinion. “The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.”
The majority of Supreme Court justices found that the Constitution “very clearly” gives Congress the power to impose taxes, which include tariffs. Chief Justice John Roberts, who wrote the majority opinion, added, “The Framers did not vest any part of the taxing power in the Executive Branch.”
Eley said he will explore getting the tens of thousands of dollars he’s paid in tariffs refunded, but as a small-business owner he can’t afford to sue the government.
“I’m not holding my breath on that, but just being able to make shoes and kind of restock a lot of the sizes that have been sold out to get some products in for our customers is going to be a really good thing,” he said. “It’s a risk that I’m willing to take right now and hope that things work out well.”
Scott Lincicome, a critic of Trump’s trade policies and a vice president at the Cato Institute, called the decision a win for the rule of law.
“This case was less about tariffs and more about the rule of law, separation of powers, and whether we have a king or not,” Lincicome said.
Trump has been vocal about the case, saying a ruling against him would be an economic blow to the country. In a Thursday visit to northwest Georgia, the Republican president touted his economic agenda, especially his tariff policies.
“Without tariffs, this country would be in so much trouble right now,” he said during his remarks at Coosa Steel Corp. in Rome.
On Friday at a White House breakfast with governors, CNN reported that Trump called the ruling a “disgrace,” adding that he has a backup plan.
The tariffs decision doesn’t stop Trump from imposing duties under other laws. While those have more limitations on the speed and severity of Trump’s actions, top administration officials have said they expect to keep the tariff framework in place under other authorities.
But legal opposition crossed the political spectrum, including libertarian and pro-business groups that are typically aligned with the GOP. Polling has found tariffs aren’t broadly popular with the public, amid wider voter concern about affordability.
This is a developing story. Please return to ajc.com for updates.
— The Associated Press contributed to this story.
About the Authors
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
Mirtha Donastorg is a reporter on The Atlanta Journal-Constitution’s business team focusing on Black wealth, entrepreneurship, and minority-owned businesses as well as innovation at Atlanta’s HBCUs.
