Tariff Update: What the Supreme Court Decision on Tariffs Means for Small Business

This article and video were updated on February 23, 2026 to reflect new developments.

Last week’s long-awaited Supreme Court tariff ruling, which struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), has significant ramifications for the U.S. economy and small businesses, in particular.

U.S. Chamber of Commerce Chief Policy Officer Neil Bradley breaks down the recent Supreme Court decision on tariffs and its implications for businesses.

Bradley explained that the Supreme Court determined it was illegal to use the IEEPA to impose tariffs. While other tariff authorities, such as Section 301 (country-specific tariffs) and Section 232 (product-specific tariffs on items like steel, aluminum, and lumber), remain unaffected, the global tariffs imposed under IEEPA are now nullified. These tariffs, which ranged from 10% to 50%, are no longer in effect.

However, soon after the Supreme Court decision was announced, the administration quickly moved to reinstate tariffs using different legal mechanisms. Bradley noted that while these new tariffs are temporary, they create uncertainty for businesses, as the administration has indicated it will use the next 150 days to investigate and potentially impose tariffs under other authorities.

One of the most pressing issues following the Supreme Court decision is the fate of the $130 billion collected under the now-nullified IEEPA tariffs. Bradley emphasized that these funds should be refunded to businesses, but no refund mechanism has yet been announced.

“At the U.S. Chamber, we're encouraging the administration to make this a simple process” Bradley said. “Hundreds of thousands of small businesses paid these tariffs last year. The tariffs were illegal according to the Supreme Court…and we should make that process as simple as possible.”

Bradley cautioned businesses to be wary of scams and premature offers from firms claiming to expedite the refund process, as the official procedure has not yet been announced.

Beyond the immediate implications of the Supreme Court decision, Bradley reiterated the Chamber’s long-standing position on tariffs. The U.S. Chamber of Commerce advocates for low or zero tariffs, arguing that they act as taxes that distort the economy and increase costs for businesses and consumers. The Chamber has consistently pushed for policies that reduce tariffs both domestically and internationally, promoting a zero-to-zero tariff framework to facilitate trade and economic growth.

For more on the U.S. Chamber’s work on tariffs, visit the U.S. Chamber’s site here.

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