Siding with a small Vermont cycling company, the U.S. Supreme Court on Friday struck down President Donald Trump’s sweeping tariff scheme that has upended global trade and threatened businesses.
The high court ruled 6-3 in favor of Terry Precision Cycling, a Burlington-based maker of women’s cycling gear, as well as the other small businesses around the country and a dozen states, including Vermont, that sued the Trump administration last year.
“Today’s ruling is welcome news for American small businesses like mine,” Terry’s CEO, Nik Holm, said in a written statement. “The court system has been unanimous: these draconian, across-the-board tariff taxes have no legal or constitutional basis.”
The Supreme Court concluded that Trump does not have the power to enact the tariffs on his own. The president argued that the 1977 International Emergency Economic Powers Act gave him the authority to do so, though no other president had.
A majority of Supreme Court justices, led by Chief Justice John Roberts, ruled that the 1977 law did not authorize such powers.
“The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope,” Roberts wrote for the majority. “In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”
The ruling brings fresh uncertainty to international trade. The president previously said he would look for other ways to impose tariffs if the court ruled against him. Meanwhile, American businesses large and small are already petitioning for refunds of the billions of dollars that the duties have cost them. Holm indicated that his cycling company will be among them.
“Though it will be many months before our supply chain is back up and running as normal,” Holm said in his statement, “we look forward to the government’s refund of these improperly-collected duties.”
Terry Precision Cycling sells cycling saddles and apparel that is designed for women. The company, which operates out of a small office suite in downtown Burlington, has about 20 employees and sources many of its products overseas. Holm has described the tariffs as an existential threat to the business.
More broadly, tariffs have affected trade and relations between Vermont and its northern neighbors in Quebec.
Vermont Sen. Peter Welch, a Democrat, joined a chorus of tariff opponents who heralded the court’s break with the president.
“I welcome this definitive ruling by the Supreme Court, which will provide relief to America’s Main Streets and makes it clear that Congress – and Congress alone – holds the constitutional authority to regulate tariffs,” Welch said in a statement.
“The next step must be doing right by Americans – including small businesses and farmers in Vermont – harmed by Trump’s economic wrongdoings,” his statement continued.
This story may be updated.
