The U.S. Supreme Court dealt a significant blow to President Donald Trump's economic agenda, ruling that his sweeping tariffs are not legally permitted under current law.The decision immediately sparked strong reactions from bot h sides of the political aisle, with Trump vowing to implement new tariff measures while Democrats celebrated the court's rejection of what they called an illegal tax on American consumers. Supreme Court strikes down Trump's sweeping tariffs in major ruling"Foreign companies that have been ripping us off for years are ecstatic, they are so happy and they're dancing in the streets but they won't be dancing for long," Trump said.Senate Majority Leader Chuck Schumer responded by saying the ruling vindicated Democratic opposition to the policy."Trump's tariff tax was illegal and the courts agreed. Let's call these tariffs what they are, a tax on the American people."President Trump has already announced plans to sign a new executive order implementing a 10% global tariff in response to the Supreme Court's decision.The ruling opens the door for companies that paid the now-invalidated tariffs to seek refunds from the Treasury Department. Hundreds of businesses have already filed lawsuits seeking compensation, though the court did not directly address the refund issue in its decision.Local businesses feel the impact:The potential for refunds represents a significant development for small to mid-size businesses like Diamond Discs International in Milwaukee, which has been grappling with the financial burden of the tariffs.Company President Ugo Nwagbaraocha, who opposed the tariffs from the beginning, welcomed the Supreme Court's decision. Diamond Disc International supplies cutting tools to professional contractors nationwide."We have one of the nation's largest inventories of professional grade diamond disc cutting tools used to cut concrete, brick, block, road construction," Nwagbaraocha said.The company president estimates his business paid hundreds of thousands of dollars in tariffs during 2025 alone, representing cost increases of 30% or more. Those expenses were largely absorbed by the company, with only minor price increases passed on to customers."All the above," Nwagbaraocha said when asked whether his company directly paid tariffs or faced increased costs from suppliers hit by the duties.Last August, Nwagbaraocha participated in a roundtable discussion with Senator Tammy Baldwin about the impact and uncertainty Trump's tariffs would have on his businesses, which also include utility safety equipment."I think it was the right decision," Nwagbaraocha said of the Supreme Court ruling."Congress at the very least should weigh in on these things, you know, and from a business stand, from an economic standpoint, it's the right decision also," Nwagbaraocha said.The business owner supports the possibility of refunds for companies that paid the import duties."I think it's the right thing to do to look at how do we return these funds back to these small businesses," Nwagbaraocha said.Public opinion and economic impactA majority of Americans - 56% - said in a national Marquette poll this month that tariffs hurt the economy. https://law.marquette.edu/poll/2026/02/05/new-marquette-law-school-national-survey-finds-63-say-u-s-supreme-court-should-limit-trumps-tariff-authority/The nonpartisan Tax Foundation estimates the tariffs struck down by the court cost households an additional $1,000. https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/This story was reported on-air by Charles Benson and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.Its about time to watch on your time. Stream local news and weather 24/7 by searching for TMJ4 on your device.Available for download on Roku, Apple TV, Amazon Fire TV, and more.Report a typo or error ...read more read less