US Supreme Court Strikes Down Trump Tariffs… What Next?
Trump’s tariffs got struck down by the U.S. Supreme Court on Friday. Here’s what we know, what we don’t, and how it impacts your boating experience over the next 12 months.
What Happened
The Supreme Court tossed most of the recent IEEPA-based import tariffs in a 6–3 ruling, saying that emergency law doesn’t let a President unilaterally set broad, open‑ended duties. Steel and aluminum tariffs enacted under other statutes were not impacted by the court’s decision.
Hours later, the White House said a separate 10% “temporary” global tariff would start under Section 122 of the Trade Act of 1974. This is an attempt at a replica tariff through a separate legal structure, surely to see the same fight from importers and politicians alike.
What We Know
Tariffs struck down: the “reciprocal” country-by-country tariffs (10% baseline with higher rates on select nations) and the fentanyl “trafficking” tariffs on some imports from Canada, China and Mexico are unlawful.
Not touched: steel and aluminum tariffs imposed under other trade laws remain in place, which keeps some input costs in place.
Refunds are on the table: the Court didn’t spell out the process, but the court’s dissent mentions that the U.S. Treasury may owe “billions” to importers who paid the now‑invalid IEEPA duties.
A new 10% headline rate may slide in: the White House says Section 122 kicks in immediately. Whether it sticks, narrows, or gets stalled in court is to be determined.
Rushing to order something new now does no good: the tariff is charged when your boat crosses the border. So, a new build that takes 8 months to arrive will have no foresight to know what impact tariffs will have at the time of the future importation.
What We Don’t Know
If/how brands will reprice: many brands have existing pricing which quotes “landed, duty‑paid” rates. Do they drop now to appease buyers, or wait some clarity is reached?
How is sitting inventory treated: if refunds are to be paid back to importers, shrewd buyers will expect those costs to be reduced from the current price tag.
Contract liability mid-build: if duties adjust during construction, the liable party will depend on your purchase contract. There is no universal standard. If your contract is vague, it’s best to start that conversation now while you have leverage.
Refund mechanics: we don’t yet know whether refunds will be due, who would qualify, how the request would be made, or how long it will take to get paid back.
Scope and lifespan of the new 10%: is there a seamless transition between the prior repealed tariffs and the new rates imposed under Sect. 122 of the 1974 Trade Act?
How This Impacts Boat Buyers Over the Next 12 Months
A clear path forward is not yet known: some relief where IEEPA was baked into landed pricing may present itself, but new 10% base tariffs are already in place according to the administration. President Trump wants these tariffs, so these tariffs are not just going to disappear without a fight.
Who gets the refund: if you recently purchased something where duties were included, you (and not the dealer) may be entitled to the refund. Check your agreement.
Confidence gets a small boost: even a 10% reduction in duty rate will positively impact demand. I expect day boats with 6-10 month build times to see a boost in deliveries between Q4 2026 and Q1 2027.
Contracts get sharper: any deals papered in the next few weeks should have explicit language tailored to the opaque nature of this tariff uncertainty. Make sure you are clear on contractual language and not exposed to unexpected price adjustments based on foreign trade actions taken in response to Friday’s Supreme Court ruling.
Domestic builders retain stability: U.S. built boats still dodge all this volatility.
Used market takes a hit: with a suspected drop in new build overall cost, late model options on the secondary market will likely see a value drop.
If You Already Imported Under IEEPA
Ask your customs broker to pull entry summaries and a duty paid receipt so you’re ready if/when the process to request a refund is released.
If a dealer was the importer, get a written understanding now on how any refund will be handled when/if it arrives.
What To Do If You’re Buying Now
If you’ve got an eye on sitting U.S. inventory: see if the seller is discounting the prior tariff rates from the list price as an incentive for sale. If they are, your purchase contract should state you are not responsible for the tariff liability should the U.S. administration successfully impose tariffs yet again.
If you have a vessel en route to the U.S.: check your contract. Are import duties included? If so, be aware of the current standing law at the time of import, and how your balance due is impacted.
If you own a foreign flagged vessel: consider expediting an importation into the United States under a reduced tariff, and gaining major value should larger, long-term tariffs be reintroduced.
Want help pressure‑testing a contract for tariff issues or strategizing tariff security in your next purchase?
For additional contact options:
Call Reed directly at 305-908-1504 or email Reed@RNMarine.com
About the Author
Reed Nicol is a licensed yacht broker with experience in all corners of the marine industry. He’s worked as an executive and sales director in yacht manufacturing and distribution, has structured commercial charter operations, and designed and executed notable refits. Read more about Reed’s marine journey, his love of helping 1st time boaters and his entrepreneurial spirit here.
Reed Nicol [Licensed FL Yacht Broker #11926]
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