PHILADELPHIA (WPVI) — Small business owners say there’s uncertainty after President Trump announced plans to impose a new global tariff following a Supreme Court decision that struck down most of his broader tariff agenda.
Trump said he would impose a 10% global tariff for 150 days under Section 122, a provision designed for emergency situations.
The move comes after the Supreme Court, in a 6-3 decision, ruled that the president does not have the authority to impose sweeping tariffs without congressional approval.
READ MORE | Supreme Court strikes down Trump’s sweeping tariffs, upending central plank of economic agenda
Chief Justice John Roberts, writing for the majority, said the president lacked the authority to act without Congress.
Trump criticized the ruling, calling it a disgrace, but later said he would pursue tariffs through the emergency provision.
The announcement has left small businesses grappling with how to plan for potential cost increases, particularly those that rely heavily on imported goods.
“There’s so much uncertainty, and my suppliers really don’t know what’s going on. Every week, I get an invoice and the arrows are all up. They are covering for future increases,” said John Ingersoll, the owner of Evergreen Cheese in Chestnut Hill.
Ingersoll has owned his business for nearly 45 years and said he has seen prices steadily rise over time.
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“I’ve seen prices go from 2.99 a pound to 14.99 to 25.99,” he said.
Also in Chestnut Hill, Damien Graef recently opened Lovat Square.
“We just opened last week, we are a specialty wine store in Chestnut Hill focusing on small producers primarily from Europe,” Graef said.
Both Evergreen Cheese and Lovat Square rely largely on imported products.
Graef said raising prices is a last resort.
“I hate raising prices on our customers, I really do feel strongly about offering the best value for the products that we offer at all price points,” he said.
Trump defended the new tariff plan earlier, saying, “Today I will sign an order to impose a 10% global tariff under section 122 over and above our normal tariffs already being charged.”
Jonathan Doh, a professor of international business at Villanova University, said this makes it difficult for businesses and consumers to plan.
“It creates a lot of uncertainty for businesses and consumers to plan ahead because they are not sure what they are going to be facing in this dramatically evolving tariff landscape,” Doh said.
Experts say Congress is expected to challenge the use of Section 122, arguing there is no definitive emergency. They note, however, that other regulations could still allow the administration to continue pushing its tariff policies forward, prolonging uncertainty for businesses large and small.
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