Brad Schweig, vice president of operations at Sunnyland Outdoor Living, got a news alert Friday that hit home for his business that includes a store in Frisco and North Dallas. His phone told him the Supreme Court had struck down key tariffs by the White House, a decision that’s been anticipated for months.
I “saw that, and I said, ‘Well, this is going to be interesting,’” said Schweig, whose business sells patio furniture, fire pits and other outdoor-related items.
Still, that doesn’t mean he knows what’s going to happen with tariffs on the different products he has to juggle — and the question of the refunds that could come from the already-collected tariffs and how vendors would address that.
“I would say it’s definitely ambiguous,” he said. “The short answer is we have no idea. I’m not expecting to get a check in the mail anytime soon.”
The lack of clarity could be more widespread than initially thought after the High Court issued its 6-3 opinion that took on the powers the White House used to slap tariffs on products from around the world. It was the biggest decision since President Trump’s “Liberation Day” that ran up costs on some goods, even as many of the import duties would evolve and be rolled back on certain items and jurisdictions.
Yet within hours of the decision on Friday, Treasury Secretary Scott Bessent said in Dallas that the Trump Administration would “invoke alternative legal authorities” for tariffs. Now, businesses in North Texas must contend with questions on costs, how new rules will be implemented, and what happens with the refunds and how that can be handled among suppliers and retailers.
“The short-term effect is likely more uncertainty,” Ray Perryman, President and CEO, said in an emailed statement. “The new across-the-board tariffs may reduce the effective rate modestly, but will add additional confusion as the administration seeks to use a variety of measures to implement temporary levies.”
With the ruling, the court decided Trump’s attempt to use an emergency powers law to enact the levies was not valid. At issue are the double-digit tariffs Trump imposed on almost every country by invoking the 1977 International Emergency Economic Powers Act.
The decision was “clearly a step in the right direction, Perryman said. Tariffs generally have net adverse effects, and the ability to impose them at will has made planning difficult for importers.
“Unfortunately, however, it will take a while for the effects to work their way through the economy, and the unsettled nature of the future course at present will continue to frustrate planning and investment,” Perryman said.
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Still, there’s the money that’s already been gathered up during the process. The University of Pennsylvania’s Penn Wharton Budget Model showed estimates that the refunds would total up to $175 billion.
At the National Retail Federation, David French, executive vice president of government relations, praised the court’s decision, saying it would provide much-needed certainty – and urged the lower court to ensure a seamless process to refund the tariffs to U.S. importers.
“The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers,” French said.
At the U.S. Chamber of Commerce, Neil Bradley, executive vice president and chief policy officer said “swift refunds of the impermissible tariffs will be meaningful” for small business importers in this country.
The overall steps could take a while, even as the refunds will certainly be pursued, Perryman said.
“It is likely to be a lengthy and cumbersome process,” Perryman said. It would “obviously be helpful for the importers and potentially those in their supply chains (and the numbers are large), but I wouldn’t expect any near-term benefits.”
One local furniture and mattress business in Mesquite is focused on navigating the tariffs for now – and isn’t as preoccupied with the potential of refunds.
“I’ll believe it when I see it, but there’s no sense in stressing about that right now,” said Quality Home Furniture’s Brandon Barrick, the company’s chief operating officer.
He said the tariffs have pushed the company to get leaner and more creative with sourcing. That includes switching to more American-made suppliers even as some vendors haven’t made it amid the tariff squeeze, he said.
At a high level, Barrick sees the Supreme Court decision as a positive, while noting that some tariffs have affected his business directly with some items in particular getting hit with extra costs.
“We’re very adaptable,” Barrick said. “Being agile as a business is why we’re able to compete with larger companies.”
Other industries are keeping an eye on what’s going on as well, including footwear, where Dallas’ Hari Mari competes. The company sells flip-flops and related items online and through retailers.
“I think the mood in the footwear industry in response to the recent tariff decision is cautiously optimistic, and probably more cautious than (optimistic)” said Jeremy Stewart, founder, in an email. Brands are “adopting a wait and see posture.”