Business Leaders Welcome SCOTUS Tariffs Decision
But what comes next?
By Thomas W. Florsheim Jr. and Daniella Ballou-Aares
After months of speculation, the Supreme Court on Friday blocked the Trump administration’s sweeping tariffs scheme. It ruled 6-3 that the president improperly used his emergency authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs without the consent of Congress. The decision was a decisive victory for the rule of law and was welcomed by business leaders, even as President Donald Trump defended tariffs in his 2026 State of the Union as a cornerstone of his economic policy.
In his record-long address to Congress, Trump portrayed tariffs as part of America’s economic rebound and criticized the court’s decision as “very unfortunate.” He defended the continuation of tariff policy and signaled that new duties are likely to play a broader role in U.S. economic strategy.
For companies like Weyco, tariffs are far from a boost to American business growth; they are making products more expensive to produce and business more complex to manage. The constantly shifting tariff landscape over the past year made business planning extraordinarily difficult, forcing management teams to spend time reacting to policy changes rather than focusing on the decisions that drive economic growth: product development, brand building, and long-term investment.
And the Trump tariffs are not just bad policy; they’re also unconstitutional. As Justice Neil M. Gorsuch emphasized in his concurrence, the Supreme Court decision reinforces Congress’ constitutional role not only with regard to tariffs but also on a wide range of other areas of economic policy where executive action has led to an uncertain and chaotic policy environment.
Though last week’s decision represents an important step forward, it also raised difficult questions for the shoe industry and many others. For one, will anything about this challenging environment change?
Early indications suggest not. In the hours following the decision, Trump vowed to reinstate 10% global tariffs under Section 122. A day later, he announced an increase of those global tariffs to 15% across the board. Unless extended by Congress, these new tariffs are set to expire in 150 days. That creates a plan fundamentally at odds with global supply chains — even as Trump used the State of the Union to argue that tariffs are helping bring production and manufacturing “back home.”
Contrary to their stated intent, tariffs do not appear to be meaningfully reshoring production. Instead, they are adding costs and complexity to a globally integrated supply chain. For the footwear business — and for many others that operate on long lead times and fixed commitments — leaders must set costs and pricing months in advance. With this new round of tariffs, businesses will again be forced to make inventory, pricing, and sourcing decisions today without any visibility into what the cost structure will be just a few months from now.
The ruling raises another important question: What will happen to the $134 billion in tariff revenue the federal government collected under the now-invalidated plan? Small and midsize businesses paid those costs upfront, often passing them along to consumers or absorbing them outright.
Despite previously promising to distribute refund checks if they lost in court, members of the administration, including Treasury Secretary Scott Bessent, are now suggesting that refunds may never materialize. As NPR reported, this leaves business owners in limbo: unsure whether relief will come through refunds, tax credits, or not at all — and uncertain how long the process could drag on.
Meanwhile, the ruling has emboldened governors, including Illinois Gov. J.B. Pritzker, who has sent the White House an $8.6 billion “invoice” for tariff-related costs borne by businesses and consumers in his state. California Gov. Gavin Newsom has taken similar steps, arguing states should not be left holding the bag for an unconstitutional federal policy.
But for now, uncertainty remains the only constant for business leaders.
Trump’s remarks again made clear his intent to continue using alternative statutory authorities, including short-term global tariffs under Section 122. By defending tariffs on the national stage, the president underscored that unpredictability may be a feature, not a bug, of his trade policy, amplifying concerns among global supply chain managers.
This unpredictability discourages investment, compresses margins, and raises prices for consumers. For leaders across industries, the deep frustration of operating a business amid constantly changing rules will continue. Businesses can adapt to most policy frameworks, but they cannot operate effectively without consistency and predictability.
Thomas W. Florsheim Jr. is chairman and chief executive officer of Weyco Group, Inc., a Milwaukee-based global footwear company, a role he has held since 2002. Daniella Ballou-Aares is the CEO and founder of the Leadership Now Project, a membership organization of business leaders committed to protecting democracy as a foundation for a thriving economy and political stability. Find Daniella Ballou-Aares on Substack here and the Leadership Now Project here.
As the advertisers say, "but wait, there's more." Trump, in a fit of pique, invoked another byzantine rule that supposedly allowed him to invoke a 15% tariff across the board. He's not done yet, and with hope, neither is the supreme court.
Further evidence that the business “genius” Trump knows nothing about business.