Global trade policies under threat as Trump petitions the Supreme Court to uphold his imposed tariffs

In a recent statement, Mike Short, president of global forwarding at brokerage giant C.H. Robinson, highlighted the growing concern among businesses regarding tariff volatility. Short stated that companies are not only adjusting their short-term tactics but also rethinking their long-term supply chains and sourcing strategies in response to the new normal.

Short added that companies should prepare for continued trade turbulence, regardless of how the ongoing legal battle over President Trump's "Liberation Day" tariffs is resolved. These tariffs, initially unveiled by Trump on April 2, have resulted in a significant increase in revenue for the U.S., with over $142 billion collected so far, according to CNBC.

The potential for retroactive refunds of duties already paid remains unclear, according to Short. If the Supreme Court upholds the lower court rulings, Customs may process refunds automatically, or brokers may face a flood of additional work to secure them, potentially doubling workloads overnight.

The decision on the legality of President Trump's "Liberation Day" tariffs is currently being handled by the U.S. Court of International Trade in New York and the U.S. Court of Appeals. The U.S. Court of Appeals for the Federal Circuit has struck down most of Trump's tariffs, ruling that his use of emergency powers exceeded presidential authority. However, the Supreme Court is yet to make a decision, though it is expected to do so soon.

Meanwhile, ongoing Section 232 investigations across various industries, including lumber, pharmaceuticals, aerospace, trucks, seafood, and critical minerals, could quickly trigger new tariffs. This was seen with the 50% duties added to imports of steel, aluminum, and copper in July.

Increasingly, companies want brokers like C.H. Robinson to move beyond discussion and accelerate execution in response to tariff volatility. If refunds are ordered, companies are particularly concerned about the process and the potential impact on their operations.

President Trump has announced he will seek an expedited Supreme Court review for the legality of his "Liberation Day" tariffs. If the Supreme Court upholds the lower court rulings, Trump has threatened to "unwind" trade deals with the European Union, Japan, and South Korea.

The tariffs will stay in effect until at least Oct. 14, leaving businesses in a state of uncertainty. As the situation evolves, companies are focusing on adaptability and resilience, adjusting their strategies to navigate the ongoing trade turbulence.