Where Will Tariff Money Go? Many Questions Remain After Ruling

In a 6-3 decision, the U.S. Supreme Court ruled last week that President Trump does not have the power to levy tariffs on imported goods under the International Emergency Economic Powers Act.  Travis Cushman, deputy general counsel for litigation and public policy for the American Farm Bureau Federation, said the decision immediately goes to the International Court of Appeals to figure out what happens next.

“It is unclear what happens to the tariffs that have been collected, if those will be refunded, who gets the money, how much it is, and it’s also unclear if the President will try to use other statutes to levy tariffs," Cushman said.  "The other options are much more clunky and difficult to administer.”

The Tariffs Come For Several Sections

He said the Court ruled that the U.S. Constitution clearly grants Congress the power to levy tariffs under IEEPA.  However, the tariff conversation likely isn’t over.

"About half of the tariffs were under IEEPA, the new tariffs, and the other half were in other sections, so the other sections can provide an avenue for those,” Cushman said.

Farmers May See Relief Soon

He added it’s too soon to tell what the long-term impacts of this decision will be, but some good news might be on the way in the short term.

“Inputs that are foreign derived should go down without those tariffs in place," Cushman said.  "The question is what happens to our export markets, whether they have been lessened from retaliatory tariffs or smaller purchases. It’s also uncertain if new tariffs will be levied. Any current restrictions that are in place on other countries on our imports will immediately go away.”

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