What happens when the Supreme Court strikes down the legal foundation behind sweeping U.S. tariffs?

In this episode of Around the Horn in Wholesale Distribution, Kevin Brown and Tom Burton break down the 6–3 SCOTUS ruling overturning tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and what it means for distributors, manufacturers, contractors, and the global supply chain.

What You’ll Learn:

• Why the Supreme Court ruled that tariffs under IEEPA exceeded presidential authority, and what that signals about executive vs. congressional power
• Whether tariff refunds are likely, and why the “food fight” over who gets repaid could last years
• How Section 122 (temporary tariffs), Section 232 (national security), and Section 301 (unfair trade) may reshape the next phase of U.S. trade policy
• What the ruling means for existing trade agreements with Japan, Taiwan, China, and other partners
• How wholesale distributors should think about tariff surcharges, price increases, and downstream customer expectations

Episode Highlights:

• 03:18 – Breaking news: The Supreme Court strikes down tariffs under IEEP
• 08:42 – Presidential authority vs. congressional taxing power: Why this ruling matters beyond tariff
• 15:57 – The refund question: Who actually paid the tariffs, and who gets the money back
• 28:11 – Distributor dilemma: What happens if tariff costs were already passed through the channel
• 39:36 – NAW’s response and the call for swift tariff refund
• 47:20 – Section 122 explained: Can the administration impose 10–15% temporary tariffs immediately
• 58:04 – Trade deals in play: Will Japan, Taiwan, or others renegotiate
• 01:10:15 – Are tariffs a strategic tool, or an economic drag?

Tools, Frameworks, or Strategies Mentioned:

• IEEPA (International Emergency Economic Powers Act)
• Section 122 of the Trade Act of 1974 (temporary tariff authority)
• Section 232 (national security tariffs)
• Section 301 (unfair trade practices)
• NAW (National Association of Wholesalers and Distributors) policy response
• Tariff surcharge line-item strategies in distribution pricing

Closing Insight:

“Has it been an effective stick? Yes. But is it good for the economy right now? That’s where the debate begins.”

For wholesale distributors operating on thin margins, this ruling isn’t just political, it’s operational. From pricing strategy to vendor negotiations to long-term sourcing decisions, the implications ripple through every layer of the B2B supply chain.

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