Trump tariffs: Arizona businesses weigh in on SCOTUS ruling

Trump tariff: Arizona reacts to SCOTUS ruling

On Feb. 20, the U.S. Supreme Court ruled that President Donald Trump's tariffs are illegal in a 6-3 ruling that states the President needed a distinct law from Congress for the tariffs. FOX 10's Megan Spector has more on local reaction to the ruling.

PHOENIX - Arizona business owners are reacting to a ruling by the U.S. Supreme Court over tariffs imposed by President Donald Trump.

The backstory:

On Feb. 20, SCOTUS ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize President Trump to impose his global tariffs.

In September 2025, the Trump administration requested that the Supreme Court rule quickly that Trump had the power to impose sweeping import taxes under federal law. The administration filed a petition requesting that the high court reverse an appeals court ruling that determined most of Trump’s tariffs are an illegal use of an emergency powers law, which gives the President broad authority to regulate a variety of economic transactions following a declaration of national emergency.

The tariffs decision doesn't stop President Donald Trump from imposing duties under other laws, which he has announced. While those have more limitations on the speed and severity of Trump's actions, top administration officials have said they expect to keep the tariff framework in place under other authorities.

Local perspective:

The decision by SCOTUS has brought a sigh of relief for many businesses across the Phoenix area.

"It’s been really difficult over the last couple of years to manage budgets when you have tariffs that are engaged and then disengaged and changing and volatile and up and down," said Barry Chase, CEO of Chasse Building Team. "So a little bit of relief on that that we’re going to get some clarity and consistency moving forward."

James Peacock, who is the CEO of SKU Distribution, is thinking about the next steps.

"I think what’s on everybody’s mind right now because they were found illegal that he couldn’t use IEEPA – is there going to be refunds?" said Peacock. "I think that’s what’s on every business owners mind is how that is going to be sorted out."