Supreme Court Rules Trump Tariffs Illegal, Potential $175 Billion Refunds Loom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Source: CNBC
- Supreme Court Ruling: The U.S. Supreme Court's 6-3 decision declaring Trump's unilateral tariffs illegal could obligate the government to refund over $175 billion to importers, impacting a wide range of businesses and highlighting significant legal flaws in Trump's policies.
- Refund Estimates: The $175 billion refund estimate from the Penn-Wharton Budget Model is based on tariffs collected since their imposition, reflecting the potential fiscal implications of Trump's tariff policies on the federal budget.
- Legal Challenges: Multiple importers have initiated lawsuits seeking refunds, citing lower court rulings that deemed Trump's tariffs illegal, which may lead to substantial legal challenges and refund requests for the government, increasing policy uncertainty.
- Economic Impact: Economists estimate that the illegal IEEPA-related tariffs constitute about 60% of all tariffs imposed to date, indicating a significant drop in tariff rates from 9.5% to 5%, which could have profound effects on U.S. trade and consumer prices, potentially generating uncertainty in future trade agreements.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 124.870
Low
119.00
Averages
125.75
High
136.00
Current: 124.870
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Inflation Pressures: The December core PCE price index increased by 3.0% year-over-year, surpassing expectations of 2.9%, which may impact the Fed's monetary policy and limit its ability to cut rates, thereby affecting market liquidity.
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See More
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- Positive Industry Response: Footwear industry representatives noted that removing tariffs would allow the sector to redirect billions toward innovation and job creation, alleviating cost pressures and fostering ongoing collaboration with policymakers to ensure trade policies adapt to the global marketplace.
See More
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