The recent US Supreme Court decision overturning President Trump’s use of emergency powers to impose tariffs has sent ripples through global trade and UK businesses are among those watching closely. Here’s what you need to know about the ruling, its immediate effects, and what it could mean for your business.
Firstly – Ruth Corkin comments on why this has happened
President Trump’s sweeping tariffs have been struck down by the Supreme Court. The Government conceded that the President enjoys no inherent authority to impose tariffs during peacetime under The Constitution but relied on the International Emergency Economic Powers Act (“IEEPA”) for the imposition. The Court held that IEEPA did not authorise the President to impose tariffs. The Supreme Court went on to say that to hold the view that IEEPA gave the President such powers to impose tariffs “…would represent a transformative expansion of the President’s authority over tariff policies. It is also telling that in IEEPA’s half-century of existence, no President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope. That “lack of historical precedent’, coupled with the breadth of authority” that the President now claims, suggests that the tariffs extend beyond the President’s “legitimate reach””.
As we wait to see how events unfold, here are some of the key implications for UK businesses.
1. Relief for UK exporters
UK exporters to the US have faced higher costs due to tariffs imposed by Trump under emergency powers. The Supreme Court’s ruling means these tariffs may be lifted, potentially making UK goods more competitive in the US market. In fact, UK exports to the US dropped by £2 billion in April 2025, the largest monthly decrease on record, largely attributed to these tariffs.
2. Potential for tariff refunds
One consequence is the possibility of refunds for tariffs already paid. UK businesses that have been affected should audit their historic customs entries and prepare documentation to claim refunds. However, the process is expected to be complex and may require legal support, as the US government works through the implications of the ruling.
3. Ongoing uncertainty
While the ruling clarifies the limits of presidential powers under the International Emergency Economic Powers Act (IEEPA), it does not eliminate the risk of future tariffs. The US administration retains the ability to use other legislation, such as the 1974 Trade Act, to impose new duties. UK exporters should stay alert to policy developments and be prepared for further changes.
4. Supply chain strategy
Businesses with complex supply chains may need to review their sourcing and manufacturing arrangements. Rules of origin and preferential trade agreements could affect which tariff rates apply. For example, transforming non-preferential goods in the UK may allow exporters to benefit from lower UK-US tariff rates.
5. Sector-specific impacts
Industries previously targeted by US tariffs, such as steel, aluminium, and pharmaceuticals, may see immediate relief if duties are lifted. However, future tariffs remain a possibility, and ongoing negotiations between the UK and US governments will be crucial in shaping the landscape for these sectors.
6. Business confidence and planning
The uncertainty around tariffs has already led to declining business confidence and delayed shipments. Companies should take proactive steps, including filing protective claims and seeking expert advice, to preserve their rights and prepare for potential changes.
In summary
The Supreme Court’s ruling offers hope for UK businesses affected by US tariffs, with the potential for reduced costs and refunds. However, the landscape remains uncertain, and businesses should stay informed, review their supply chains, and seek professional guidance to navigate the evolving trade environment.
If you need support and advice with cross border trade, please speak to our expert below.
