Small Businesses Await Supreme Court Ruling on Trump Tariffs

Owners say tariffs have squeezed their bottom lines, but the administration defends the import taxes as a way to boost the economy.

Feb. 17, 2026 at 6:55am

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Small business owners across the U.S. are anxiously awaiting a Supreme Court decision on the legality of tariffs imposed by former President Donald Trump. The tariffs, implemented under the president's emergency powers, have increased costs for businesses that rely on imported goods, forcing some to delay expansion, lay off workers, or absorb the higher prices rather than pass them on to customers. While the administration touts the tariffs as a way to boost domestic manufacturing and pay down the national debt, economists argue the taxes have hurt economic growth and reduced consumers' purchasing power. The outcome of the Supreme Court case will determine whether the president overstepped his authority in using emergency powers to unilaterally change trade policy.

Why it matters

The Supreme Court's decision on the legality of Trump's tariffs will have major implications for small businesses that have been squeezed by the increased costs. If the tariffs are ruled unlawful, businesses may be able to recoup some of the money they've paid, but the process could be lengthy. If the tariffs are upheld, the president could be emboldened to impose even more, further straining small firms. The case highlights the tension between the executive branch's trade powers and the economic realities faced by Main Street businesses.

The details

Businesses across various industries have been impacted by the tariffs, which were imposed by Trump under the International Emergency Economic Powers Act. Cider maker Tristan Wright has seen his aluminum can costs rise, while baby product inventor Beth Benike ran out of inventory for months due to supply chain disruptions. Apparel maker Barton O'Brien had to scrap plans for a new product line, and glass decorator Walt Rowen worries about his tariff bill each time he restocks. Overall, a survey by the Main Street Alliance found that 81.5% of small businesses may raise prices to offset tariff costs, 41.7% would delay expansion, and 31.5% said layoffs were likely if the tariffs remained.

  • Trump began imposing tariffs under emergency powers just over a year ago, in February 2025.
  • The Supreme Court heard arguments on the case in early November 2024 and is expected to issue a ruling by February 20, 2026.

The players

Tristan Wright

The founder and president of Lost Boy Cider in Alexandria, Virginia, who has seen his aluminum can costs rise due to the tariffs.

Beth Benike

The owner of Busy Baby, a Minnesota-based inventor and seller of specialty baby products, who ran out of inventory and lost income for months due to supply chain disruptions caused by the tariffs.

Barton O'Brien

The owner of the Annapolis, Maryland-based Baydog company, who had to scrap plans for a new line of Irish-style fisherman sweaters because importing from his manufacturers in India became unfeasible.

Walt Rowen

The third-generation owner of Susquehanna Glass Company, a Pennsylvania-based glass and ceramic decorator, who worries about his tariff bill each time he replenishes his stock.

Main Street Alliance

An advocacy group representing small businesses that conducted a survey finding widespread negative impacts from the tariffs.

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What they’re saying

“If there's one thing that's universal in business, no matter what you're doing, it's that stability and calmness create a positive market.”

— Walt Rowen, Owner, Susquehanna Glass Company (Oregon Capital Chronicle)

“They don't have another way of getting us out of this debt situation (and) you can point all the fingers you want over the last couple of decades.”

— Tristan Wright, Owner and President, Lost Boy Cider (Oregon Capital Chronicle)

“I have been forced, as a business owner, to borrow money and tie up all that cash in product.”

— Barton O'Brien, Owner, Baydog Company (Oregon Capital Chronicle)

What’s next

The Supreme Court is expected to issue its ruling on the legality of Trump's emergency tariffs by February 20, 2026. The decision will determine whether businesses can recoup the tariff payments they've made or if the president's trade policies will remain in place.

The takeaway

The Supreme Court case highlights the tension between the executive branch's trade powers and the economic realities faced by small businesses across the country. Regardless of the outcome, the tariffs have already squeezed the bottom lines of many Main Street firms, forcing some to delay expansion, lay off workers, or absorb higher costs rather than pass them on to customers. The case underscores the need for stability and predictability in trade policy to support small business growth.