A 6-3 decision handed down by the U.S. Supreme Court on Friday struck down President Trump’s sweeping tariffs.

The ruling invalidates many, but not all, of the tariff policies put in place by Trump throughout the past year.

The tariffs impacted by the ruling include reciprocal tariffs and the 25% tariff Trump imposed on some goods from China, Canada and Mexico.

Those tariffs were put in place after the administration claimed Canada, China and Mexico are failing to “curb the flow of fentanyl” into the U.S.

The leader of the Metropolitan Milwaukee Association of Commerce said he welcomes the Supreme Court’s decision, which limits the president’s use of emergency powers to impose tariffs.

“For Wisconsin’s business community, tariffs are not a policy debate – they are real costs that affect pricing, supply chains and investment decisions,” said Dale Kooyenga, president and CEO of MMAC. “Broad and unpredictable tariffs function as a tax on American businesses and consumers, creating uncertainty that makes it difficult for companies to plan, hire and grow. MMAC has maintained that tariff policy must be measured, targeted and grounded in clear authority. There are circumstances where narrowly tailored tariffs are appropriate. However, those efforts must be precise and strategic, not a one size fits all approach that raises costs across the entire economy. Today’s ruling reinforces the importance of predictability in economic policy. Businesses need stable policy decision-making to remain competitive and sustain jobs in the region.”

But the head of the state’s largest business organization expressed frustration with the decision Friday, saying it only leads to more questions for business owners.

“Uncertainty is one of the greatest threats to business, creating additional obstacles that hinder productivity and efficiency,” said Kurt Bauer, president and CEO of Wisconsin Manufacturers & Commerce. “Today’s decision adds to an already confusing tariff landscape. Businesses will be left to wonder how this decision will impact their customers and vendors. Sadly, there are more questions than answers at this point.”

Administration response

Trump said Friday he’ll probably “go in a different” direction, citing “numerous other federal statutes” that allow the president to issue tariffs.

“We have very powerful alternatives that have been approved by this decision, for those who though they had us,” said Trump during a Friday press conference. “The court has given me the unquestioned right to ban all sorts of things coming into our country, but not the right to charge a fee. How crazy is that?”

Trump later signed an order imposing a 10% global tariff under a different authority. He is also maintaining tariffs on specific industries, including automobiles and auto parts, steel and aluminum, copper and softwood lumber.

Refunds could be issued to businesses impacted by the administration’s tariffs that were ruled invalid by the Supreme Court, according to the Penn Wharton Budget Model, which estimates that up to $175 billion in refunds could be given.

“The (Supreme Court’s) decision does not explicitly order immediate refunds,” according to the initiative. “However, the decision that the tariffs were collected illegally has opened the door to refund claims. Importers generally have 180 days after goods are ‘liquidated’ to protest and request refunds from U.S. Customs and Border Protection.”