{"id":234138,"date":"2026-03-24T14:08:08","date_gmt":"2026-03-24T14:08:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/234138\/"},"modified":"2026-03-24T14:08:08","modified_gmt":"2026-03-24T14:08:08","slug":"after-supreme-court-tariff-ruling-sacramento-businesses-brace-for-what-comes-next","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/234138\/","title":{"rendered":"After Supreme Court Tariff Ruling, Sacramento Businesses Brace for What Comes Next"},"content":{"rendered":"

\n After the U.S. Supreme Court
\n ruled Feb. 20 that President Donald Trump illegally imposed
\n tariffs \u2014 taxes that the Treasury collects on imports from
\n trading partners \u2014 the path forward has many moving parts. We
\n checked in with business owners and industry experts in and
\n around Sacramento to understand how local businesses are
\n navigating this complex moment.\n<\/p>\n

\n Rick Hayes owns
\n Raptor Blaster<\/a>, a manufacturing firm located in South
\n Sacramento. \u201cSo many elements go into making a product and
\n selling it that can affect the price for the product as it
\n pertains to the tariffs,\u201d Hayes says. \u201cI use European and Chinese
\n machinery that equates into the price of the product, and if
\n those prices go up or down, then I am affected. I\u2019m going to have
\n to adjust my margins according to inflation.\u201d\n<\/p>\n

\n Luis Fonte Halindo is the
\n owner and lead technician of Ace
\n Tech Professional<\/a> home appliance repair service in
\n Sacramento, operated by a six-person team. \u201cThe past year and
\n this year have been the most difficult for me over the past six
\n years operating here,\u201d he says, adding that a main challenge is
\n the weakening of consumer spending. Customers, commercial and
\n residential, are delaying their repairs and deferring
\n maintenance.\n<\/p>\n

\n \"\"<\/a><\/p>\n

\n Rick Hayes (right), owner of Raptor Blaster, poses with his son
\n Brady in one of the machines his company manufactures in south
\n Sacramento. (Photo by Karlos Rene Ayala)\n<\/p>\n<\/p>\n

\n Fabrice Moschetti owns
\n Moschetti Artisan
\n Roaster<\/a>, a
\n Vallejo-based firm that does business mainly with mom-and-pop
\n firms. As an importer of coffee grown abroad, he has ridden the
\n ups and downs of tariffs on this agricultural product. He\u2019s
\n taking the long view on tariffs and his business adaptation
\n strategy.\n<\/p>\n

Related:\u00a0Trump\u2019s
\n Tariffs Hurt Some Local Businesses, but Prompt Others to Shift
\n Gears<\/a><\/p>\n

\n \u201cThe Supreme Court\u2019s recent
\n decision on tariffs pleases me,\u201d Moschetti says. \u201cHowever, I\u2019m
\n looking at five to six months for the market to reset.\u201d He says
\n resetting supply chains for seasonal products such as coffee is a
\n fluid process, and market equilibrium can be fragile.\n<\/p>\n

\n It is unclear if businesses
\n will receive refunds for the tariffs they have already paid; the
\n Supreme Court ruling did not address refunds. Meanwhile, the
\n president imposed a 10 percent global tariff on foreign products
\n entering the U.S. after the Supreme Court ruling.\n<\/p>\n

\n \u200b\"\"<\/a><\/p>\n

\n Fabrice Moschetti poses with one of his roasting machines in
\n Vallejo. (Photo by Karlos Rene Ayala)\n<\/p>\n<\/p>\n

\n Another relevant development
\n on the cost of doing business is energy prices. Gas and oil
\n prices spiked sharply after Iran struck Persian Gulf petroleum
\n facilities in retaliation for U.S.-Israel attacks. The price of a
\n barrel of oil was $70 at the beginning of this war. With
\n declining oil production in the Persian Gulf region, some
\n analysts are predicting the price of oil will reach $150 a
\n barrel.\n<\/p>\n

\n In the meantime, Trump wants
\n the Federal Reserve Bank to cut interest rates to boost
\n home-buying before the midterm elections. However, the central
\n bank\u2019s policy of reducing the cost of borrowed money in accord
\n with what the president\u2019s monetary approach is uncertain at
\n best.\n<\/p>\n

\n Robert Heidt is president of
\n the Sacramento Metro
\n Chamber<\/a>. He
\n emphasizes the importance of business stability relative to
\n tariffs.\n<\/p>\n

Related:\u00a0Sacramento
\n Manufacturers and Distributors Weigh the Effects of
\n Tariffs<\/a><\/p>\n

\n \u201cThe Supreme Court\u2019s decision
\n provides important clarity,\u201d Heidt says, \u201cand that is welcome
\n news for businesses throughout the Capital Region. Over the past
\n year, many Sacramento-area employers \u2014 particularly those
\n connected to global supply chains in manufacturing, construction,
\n and retail \u2014 have faced rising costs, supply chain disruptions
\n and compressed planning timelines as tariff policy
\n shifted.\u201d\n<\/p>\n

\n Like Moschetti of the roasting
\n company, Heidt is concerned with the rate of change in the
\n marketplace after the Supreme Court ruling.\n<\/p>\n

\n \u201cWhat we consistently hear
\n from our members is the need for predictability,\u201d Heidt says.
\n \u201cBusinesses can adapt, but stable and clearly defined trade
\n policy is what allows companies to invest with confidence,
\n support wage growth and keep costs down for families. We
\n encourage the administration to use this moment to reset tariff
\n policy in a way that strengthens economic growth and provides
\n long-term certainty for employers and consumers alike.\u201d\n<\/p>\n

\n \"\"<\/a><\/p>\n

\n Sanjay Varshney, a professor of finance at Sacramento State
\n University, takes a glass-half-full approach for businesses in
\n the Capital Region following the Supreme Court ruling. (2023
\n photo by Wes Davis)\n<\/p>\n<\/p>\n

\n Sanjay Varshney is a professor
\n of finance at Sacramento State University. He takes a
\n glass-half-full approach for businesses in the Capital Region
\n following the Supreme Court ruling. \u201cThis is better news for
\n business today versus a year ago,\u201d Varshney says. \u201cThe rollbacks
\n of the Trump tariffs are good, because they weren\u2019t sustainable
\n and more of a negotiating tool.\u201d\n<\/p>\n

\n The Supreme Court ruling
\n reduces businesses\u2019 exposure to volatility, especially those
\n exposed most to the tariffs. However, things are still in flux,
\n and businesses are now looking at an effective tariff rate of
\n perhaps 12 percent.\n<\/p>\n

Related:\u00a0Tariffs
\n Are Everywhere \u2014 But They\u2019re Not the Whole Story<\/a><\/p>\n

\n Some businesses can\u2019t sustain
\n the higher costs of tariffs, while others can, according to
\n Varshney. For example, the leisure and hospitality industry has
\n low profit margins and will struggle. That comes on top of the
\n lingering effect of COVID-19 shutdowns, which throttled the
\n industry.\n<\/p>\n

\n \u201cThere is going to be pain,\u201d
\n Varshney says regarding business adaptation strategies.
\n \u201cIndustries face the pain from tariffs unevenly.\u201d\n<\/p>\n

\n \u2013\n<\/p>\n

\n Stay up to date on Sacramento region business: Follow
\n @comstocksmag<\/a> on
\n Instagram!\n<\/p>\n