The Port of Los Angeles. | Photo courtesy of Linnaea Mallette\/PublicDomainPictures.net (CC0)<\/p>\n
Port authorities in the Los Angeles area on Friday welcomed the U.S. Supreme Court\u2019s decision to strike down President Donald Trump\u2019s widespread emergency tariffs \u2014 but also cautioned of uncertainties resulting from a new 10% global tariff Trump announced immediately after the ruling. <\/p>\n
In a 6-3 decision Friday, the Supreme Court found it was unconstitutional for the president to create and change tariffs because that power belongs only to Congress. Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.<\/p>\n
Long Beach and LA<\/a> port officials have noted the importance of clear, predictable trade policy for effective financial planning and moving cargo efficiently to keep products flowing to businesses and consumers.<\/p>\n Port of Los Angeles Executive Director Gene Seroka said the Supreme Court decision affects about two-thirds of the tariffs that have been collected since the administration implemented them last year, leading to new types of uncertainty.<\/p>\n \u201cFirst, there is not yet clarity on whether there will be refunds from the U.S. Treasury Department on tariffs already paid,\u201d Seroka said in a statement. \u201cSecond, the administration has already announced a new 10% global tariff in the wake of the ruling with no indication as to when that will take effect.\u201d<\/p>\n He added that the court\u2019s decision is in the midst of work stoppages for the Lunar New Year holiday. Most factories in China and throughout Asia are closed, with reopening not expected until at least next week.<\/p>\n \u201cThe Port of Los Angeles and its network of supply chain partners stand ready to manage any fluctuation in cargo and get it through the system swiftly without delay,\u201d Seroka said.<\/p>\n Port of Long Beach CEO Noel Hacegaba said a predictable approach to tariffs helps businesses plan investments, which in turn enables ports to maximize their contributions to the national economy. He noted that the port is one of the nation\u2019s largest gateways and will continue to work with partners to enhance operations that support the global supply chain, support the 2.7 million jobs tied to the port and enhance U.S. economic competitiveness.<\/p>\n The Supreme Court\u2019s ruling \u201crescinds most of the tariffs imposed over the last year,\u201d Hacegaba said in a statement. \u201cWhile this decision rules on the legality of the tariffs, it does not remove the uncertainty.\u201d <\/p>\n Like his LA counterpart Seroka, the Long Beach Port chief also called for \u201cclarity \u2026 on whether tariffs already paid will be refunded and when the newly announced 10% global tariff will go into effect.<\/p>\n \u201cFor now, the only certainty is more uncertainty.\u00a0\u2026 Freight can\u2019t wait \u2014 and certainty helps keep it moving,\u201d Hacegaba said.<\/p>\n The Supreme Court did not rule out allowing importers to request refunds for tariffs imposed by the Trump administration under the 1977 International Emergency Economic Powers Act.<\/p>\n The IEEPA was Trump\u2019s legal basis for the sweeping tariffs on countries with which the U.S. has unfair trade relationships, according to his administration. The tariffs were a large part of the president\u2019s economic agenda that aims to bolster manufacturing and raise revenue to pay down the $38.65 trillion national debt.<\/p>\n In response to the Supreme Court ruling, Trump announced he would impose a worldwide 10% tariff while administration officials seek out other options for trade policy. The new tariff is limited to 150 days.<\/p>\n Trump lashed out at justices who supported the Court\u2019s decision that he called called \u201cdeeply disappointing.\u201d He posted a response on his Truth Social platform.<\/p>\n \u201cThis was an important case to me, more as a symbol of Economic and National Security, than anything else,\u201d Trump wrote. \u201cThe Good News is that there are methods, practices, Statutes, and other Authorities, as recognized by the entire Court and Congress, that are even stronger than the IEEPA TARIFFS, available to me as President of the United States of America and, in actuality, I was very modest in my \u2018ask\u2019 of other Countries and Businesses because I wanted to do nothing that could sway the decision that has been rendered by the Court.\u201d<\/p>\n According to government estimates, the reciprocal tariffs<\/a> would have generated about $3 trillion toward lowering the federal debt. <\/p>\n In April, Trump imposed hefty reciprocal tariffs on countries that have the highest trade deficits with the U.S. \u2014 China,\u00a034%; Vietnam,\u00a046%; India,\u00a025%-30%; Japan,\u00a024%; European Union,\u00a020%; Cambodia, 49%; Thailand, 36%; Laos, 40%; and Myanmar, 40%.<\/p>\n Recent estimates from U.S. Customs and Border Protection and independent research organizations shows that between $133 and $200 billion have been collected under IEEPA tariffs.<\/p>\n Gov. Gavin Newsom and California Attorney General Rob Bonta issued statements following the Supreme Court\u2019s rejection of the tariffs.<\/p>\n \u201cTime to pay the piper, Donald. These tariffs were nothing more than an illegal cash grab that drove up prices and hurt working families, so you could wreck longstanding alliances and extort them,\u201d Newsom said. \u201cEvery dollar unlawfully taken must be refunded immediately \u2014 with interest. Cough up!\u201d<\/p>\n Bonta referred to states\u2019 opposition to Trump\u2019s trade policy.<\/p>\n \u201cThe Trump Administration\u2019s illegal and chaotic tariff regime has come to an end. \u2026 The highest court in the country has agreed with arguments put forth by California, our sister states, and the dedicated businesses that decided to fight for their livelihoods and for what was right,\u201d Bonta said.\u00a0\u201cWhile this is great news, we must not forget the chaos that sent businesses, consumers, and global economies reeling. At a time when more and more families are struggling with affordability and having trouble paying for the basics \u2014 their utilities, groceries, gas \u2014 this Administration seems intent on making it more expensive for Californians and Americans to live.\u201d<\/p>\n