For U.S. bike brands and retailers still navigating elevated import costs, the Supreme Court delivered a significant ruling today: the sweeping global tariffs imposed under emergency powers were unlawful.
In a 6–3 decision, the Court found that President Trump exceeded his authority when he used the 1977 International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on imports from most U.S. trading partners. The justices affirmed the earlier judgment of the U.S. Court of International Trade in Trump v. V.O.S. Selection. Among the plaintiffs was Terry Precision Cycling, the Vermont-based women’s cycling apparel brand we reported on in November. Terry joined a coalition of 12 states and five small companies challenging the tariffs’ legality, arguing that the added duties placed financial strain on its business.
“This decision represents a significant check on executive tariff authority and will shape presidential tariff policy going forward,” said PeopleForBikes, the U.S. bicycle industry’s trade association. “While it is anticipated that billions of dollars in duty collected under IEEPA will be refunded to importers, the process and timetable for that to happen is not yet clear.”
Following the Supreme Court’s decision, President Trump today said he would pursue a temporary, across-the-board 10% tariff using a different statutory authority to replace the voided IEEPA measures.
“I think the industry needs to get a firm footing on the tariff situation before adjusting prices,” Heilbron told BRAIN. “As far as collecting refunds, we’ve been unable to get duty drawbacks for product we’ve exported from our U.S. warehouse for more than a decade. We also need to temper our expectations that refunds will be made, and made in a timely manner.”
