Tariff Update: Federal Court Strikes Down Trump’s Tariff Authority

Tariffs on imported goods have surged, creating challenges for American businesses and consumers alike. Small businesses are feeling the brunt, facing higher costs that often lead to increased prices for customers. According to the Census Bureau’s biweekly survey, manufacturers, wholesalers, and retailers are reporting rising expenses, which are gradually being passed on to consumers.

Small businesses are particularly vulnerable, often operating with tight profit margins and limited flexibility to absorb increased costs. Many are forced to raise prices, reduce profits, or scale back inventory or operations to stay afloat. The U.S. Chamber of Commerce estimates that if small businesses continue importing at current levels, the new tariffs could impose a $202 billion annual cost.

In recent legal decisions, the U.S. Court of Appeals ruled that President Trump could not use the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on almost all imported goods. The court agreed with the lower court on the main points of the case but canceled the nationwide order blocking the tariffs. The appellate court also stayed its decision until Oct. 14, 2025, allowing time for the government to appeal to the U.S. Supreme Court. On Sept. 4, 2025, the government petitioned for Supreme Court review on an expedited basis. 

In short, rising tariffs are sending shockwaves through the economy, hitting small businesses hardest and driving up prices for consumers. The Wyoming Chamber, alongside the U.S. Chamber of Commerce, is actively working with federal representatives to address this issue and advocate for solutions.