The Supreme Court\u2019s decision Friday to strike down the majority of tariffs imposed by President Trump could provide some relief to L.A.\u2019s trade-reliant economy \u2014 but only if they are not reimposed again through other means. <\/p>\n
The court\u2019s 6-3 ruling<\/a> that Trump didn\u2019t have the authority to impose tariffs under the International Emergency Economic Powers Act rolled back levies that have upended international trade.<\/p>\n \u201cWe\u2019ve seen that the tariffs have a significant impact on our supply chain, on our manufacturers and especially on our port logistics and trade sector,\u201d said Stephen Cheung, chief executive of the nonprofit Los Angeles County Economic Development Corp.<\/p>\n \u201cI think this decision will have a significant impact on the Los Angeles economy. However, it\u2019s going to take a long time to unravel, so we\u2019ll see specifically how everything is going to pan out,\u201d he said.<\/p>\n The tariffs dealt a blow to a large swath of businesses in Southern California and across the state, including farmers, automakers, home builders, tech companies and apparel retailers. <\/p>\n MGA Entertainment<\/a>, the Chatsworth maker of Bratz dolls, said a little more than half of its products are made in China, while hardware and lumber seller Anawalt in Malibu<\/a> said the majority of its lumber comes from Canada and nearly all of its steel products are made in China.<\/p>\n During a news conference Friday <\/a>following the decision, Trump said that under other legal authorities he will impose a 10% global tariff and pursue additional levies, including a possible 30% tariff on foreign cars.<\/p>\n \u201cThe Supreme Court\u2019s ruling on tariffs is deeply disappointing, and I\u2019m ashamed of certain members of the court \u2014 absolutely ashamed,\u201d Trump said. \u201cThey\u2019re very unpatriotic and disloyal to our Constitution.\u201d<\/p>\n Friday\u2019s high-court decision affects up to $170 billion in tariffs collected under the International Emergency Economic Powers Act of 1977, including 10% to 50% duties and penalties on China, Canada and Mexico. <\/p>\n Whether importers who paid the tax can seek refunds was left to a lower court to decide. It\u2019s estimated some $100 billion in tariffs were not affected by the decision.<\/p>\n The ports of Los Angeles and Long Beach \u2014 which handle nearly a third of the nation\u2019s containerized cargo and are the primary trade gateway to Asia \u2014 saw a surge of traffic<\/a> the first half of last year as importers sought to get ahead of the tariffs, largely imposed in April.<\/p>\n However, traffic tailed off <\/a>the second half of the year, with the L.A. port expecting a single-digit decline in volume this year before Friday\u2019s decision.<\/p>\n The twin facilities form the largest ports complex in North America, supporting more than 200,000 jobs and contributing $28 billion to the regional economy in 2022, according to a California Center for Jobs & the Economy report.<\/p>\n The uncertainty surrounding the tariffs derives from the complexity of the tariffs themselves \u2014 as well as the other legal options Trump has to impose them again. <\/p>\n Mike Jacob, president of the Pacific Merchant Shipping Assn.<\/a>, which represents ocean carriers, marine terminal operators and others in the industry, said the tendency is to think of the tariffs as uniform. <\/p>\n \u201cIt was different rates for different countries. That was compounded by different rates for different commodities. And there\u2019s a lot of changes that have occurred with specific commodities,\u201d he said. \u201cSo it\u2019s almost impossible to take a broad brush and say, here\u2019s what we expect to happen \u2014 except to say that it\u2019s still a pretty unsettled space.\u201d<\/p>\n In seeking to impose a 10% global tariff, Trump would be relying on a provision of the Trade Act of 1974, while his ability to pursue additional levies would rely on other sections of that act and another law.<\/p>\n Economist Jock O\u2019Connell, international trade advisor<\/a> at L.A.\u2019s Beacon Economics, said that Trump may have authority to impose the 10% global tariffs, but additional levies would involve trade authorities.<\/p>\n \u201cThat would be a cumbersome process. The tariffs have to be more specifically framed and the subject of an investigation,\u201d he said.<\/p>\n Also complicating the process are trade deals the U.S. has been negotiating with foreign countries based on the tariffs. O\u2019Connell expects they will seek to renegotiate them. <\/p>\n \u201cThey\u2019re likely to come back to the table and say, \u2018Well, you don\u2019t have the authority to impose these,\u2019\u201d he said.<\/p>\n