Supreme Court Rules Some Tariffs Illegal, Experts Weigh In

Local businesses, economists, and organizations share their perspectives on the ruling's impact.

Published on Feb. 21, 2026

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The Supreme Court has ruled that some of the tariffs implemented over the past year are illegal. KSBY followed up with local experts, including the Chamber of Commerce, a used car dealership, and a Cal Poly economics professor, to get their perspectives on the ruling and its potential effects on businesses and the economy.

Why it matters

The tariff ruling adds further uncertainty to the economic landscape, with questions remaining about whether billions in tariffs will need to be refunded, and how that will impact businesses of different sizes.

The details

The Chamber of Commerce's Garret Olson said many local businesses have been hesitant to make bold moves due to the uncertainty around tariffs over the past year. However, some businesses, like the used car dealership McCarthy's, have benefited from the high costs of new cars and parts. Cal Poly economist Daniel Seiver believes larger retailers like Costco may be able to recover tariff payments, while smaller businesses will likely have a harder time doing so.

  • The Supreme Court ruled on the tariffs in February 2026.
  • KSBY spoke with local experts in March 2025 about the initial tariff announcements.

The players

Garret Olson

Representative of the Chamber of Commerce who discussed the impact of tariffs on local businesses.

Wesney

General manager of McCarthy's, a used car dealership that has seen increased business due to high new car and parts costs.

Daniel Seiver

Cal Poly economics professor who commented on the potential for tariff refunds and the differential impact on large and small businesses.

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What they’re saying

“We've seen a lot of businesses, really hesitant to make some of the bold moves that are that are so important to both our national and hyper local economies.”

— Garret Olson, Chamber of Commerce representative (KSBY)

“What we typically see in a down market, which we are in now, is that people are trying to repair cars that they've already owned. When they're not able to do that, they're coming to shop for the best value.”

— Wesney, General Manager, McCarthy's Used Cars (KSBY)

“I think the sizable firms will actually end up getting refunds based on what they actually paid. I think smaller businesses will probably, as usual, be much more be much more difficult for that to recover.”

— Daniel Seiver, Cal Poly Economics Professor (KSBY)

What’s next

Whether or not these tariff refunds will be issued is still up in the air, adding further uncertainty to the economic landscape.

The takeaway

The Supreme Court's ruling on tariffs highlights the ongoing challenges businesses of all sizes face in navigating an uncertain economic environment, with larger firms potentially better positioned to recover tariff payments compared to smaller local enterprises.