The Supreme Court of the United States struck down President Trump’s emergency trade tariffs in a ruling with major implications for the global economy and one that could bring relief to a watch industry stung by levies on goods imported from nations including Switzerland, Japan, and Germany. In a six-to-three decision, the court ruled that the president had exceeded his authority in using a 1977 law designed for national emergencies to impose import tariffs on global trading partners.
However, the U.S. President responded to the Court ruling on Friday by declaring that he had a legal workaround to keep existing tariffs in place and would impose an additional 10% global tariff using a different trade law. The President said he would impose the new duties without working with the U.S. Congress. It isn’t clear how U.S. courts might interpret the move.
In a news conference, Trump called the court’s decision “disappointing” and called justices who ruled against his tariff laws “unpatriotic and disloyal.”
The Supreme Court decision, released Friday, could mean a potential windfall for watch importers who paid tariffs on watches exported to the U.S. ranging from 10% to as much as 39% for Swiss-made timepieces. The federal government has collected more than $200 billion in tariffs since the start of 2024, according to The New York Times. Millions have likely been paid by importers of watches made in Switzerland, Japan, and Germany, and they are likely to seek a refund from the federal government if the ruling stands. It would also be welcomed by watchmakers in Switzerland, facing significant cost pressures from a strong Swiss franc and surging gold prices, as well as a 15% tariff on Swiss goods imported into the U.S. under a recent trade agreement between the two countries. Nearly all the industry’s top brands raised prices after the tariffs were imposed.