Retail industry says Trump tariff reversal will bring predictability, flexibility for innovation

A shopper carries Ecco bags in the Union Square neighborhood of San Francisco, Jan. 21, 2026.

David Paul Morris | Bloomberg | Getty Images

The retail industry on Friday said the Supreme Court’s ruling that struck down some of President Donald Trump’s global tariffs would usher in more predictability and flexibility for innovation, freeing up businesses from the burden of higher import costs.

“The Supreme Court’s announcement today regarding tariffs provides much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity,” the National Retail Federation said in a statement following the ruling. “Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families.”

The nation’s highest court determined that Trump’s broad tariff rates on U.S. trade partners enacted under the International Emergency Economic Powers Act, or IEEPA, overstepped the president’s authority. The Supreme Court is sending the case back to the lower court with instructions to dismiss it for lack of jurisdiction.

The reversal raises considerable questions about the pathway to refund tariffs that have already been paid, and whether Trump will seek to enact different trade controls.

“We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers,” the NRF said in its statement. “The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”

The NRF represents a number of U.S. retailers, from big-box retailers such as Walmart to smaller brands and manufacturers. Clothing, footwear and discretionary items were among the imports most vulnerable to Trump’s tariffs, which imposed steep rates on countries such as China and Vietnam, where the retail industry maintains large portions of its supply chain.

Matt Priest, CEO of Footwear Distributors and Retailers of America, said in a statement that the decision marked an “important step toward creating a more predictable and competitive environment for American businesses and consumers.”

“By removing these widespread tariffs, the footwear industry can redirect billions of dollars toward innovation, job creation, and affordability for families across the country,” Priest said. “This ruling provides relief at a time when cost pressures have been significant, and it opens the door for continued collaboration between industry leaders and policymakers to ensure trade policy reflects today’s global marketplace.”

The trade group said it would continue to work with the Trump administration and Congress to create a trade framework that would benefit consumers, retailers and manufacturers.

Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said the ruling was “welcome news” for businesses and consumers.

“Over the past year, the Chamber has been working with small and midsize businesses around the country that have seen significant cost increases and supply chain disruptions as a result of these tariffs,” Bradley said in a statement. “Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country and will help support stronger economic growth this year.”