Supreme Court Nixes Trump Tariffs: What It Means For New Jersey

President Donald Trump’s controversial global tariffs have been dealt a major blow by the U.S. Supreme Court – and it’s good news for New Jersey businesses, the state’s new governor claims.

On Friday, the Supreme Court ruled 6-3 to strike down Trump’s far-reaching “reciprocal” tariffs. READ MORE: Supreme Court Rules On Trump's Sweeping Tariffs

The Constitution gives Congress the power to levy tariffs. But the Trump administration argued that a 1977 law allowing the president to regulate importation during emergencies also allows him to set tariffs. Other presidents have used the law dozens of times, often to impose sanctions – but Trump was the first president to invoke it for import taxes.

The White House has argued that tariffs have been an “effective tool for achieving economic and strategic objectives” and will promote “fair trade” in the United States for the first time in decades.

As of December, federal data shows that the Treasury Department had collected more than $133 billion from the tariffs. Meanwhile, a recent Yale report found that the tariffs led to the average U.S. family losing $1,751 dollars last year.

In 2025, Trump proposed giving most Americans at least $2,000 from tariff revenue collected by his administration. No such checks have been issued as of February.

• See Related: Trump Proposes $2K Tariff Dividend: Who Would Qualify In NJ?

New Jersey Gov. Mikie Sherrill commented on Friday’s Supreme Court decision, saying she was “thrilled that folks and businesses will start to see the relief they deserve.”

“Donald Trump and his rich friends are the only people benefiting from this economy, while his tariffs are crushing small businesses and costing average families $1,700 every year,” Sherrill said.

According to the New Jersey Business & Industry Association (NJBIA), there is no question that Garden State employers have been impacted by the tariffs. And while there has always been an understanding that while some manufacturers might benefit in the long-term, it was also expected that there would be short-term pain in the form of increased costs.

“Shifting federal tariff policies often creates a lack of predictability and certainty for New Jersey businesses,” NJBIA president Michele Siekerka said. “And that uncertainty can cause businesses to freeze investments, stop hiring, and, in some cases, pivot to less favorable, cost-burdened operations.”

“Today’s ruling could potentially alleviate some of those cost pressures for those impacted,” Siekerka added. “We hope that this pause can bring about more conversation and collaboration between industry and lawmakers to strengthen our national economy, but without putting our employers in peril.”

Here are some industries in New Jersey that might be impacted by Friday’s court decision:

PHARMACEUTICALS

New Jersey is home to 14 of the top 20 pharmaceutical companies in the world, according to Choose New Jersey, and nearly 3,000 life sciences companies, according to the BioPharmGuy blog. More than 118,000 people work in the industry, according to Choose New Jersey.

Trump announced 100 percent tariffs on imported branded pharmaceuticals last year. The announcement came as several companies announced layoffs in New Jersey in a sector already set to lose nearly 2,200 positions into 2026, according to state Department of Labor records.

>> Read More: NJ Pharmaceutical Companies To Lay Off Thousands, New Tariffs Announced

CARGO AND PORTS

New Jersey and New York have one of the busiest cargo ports on the East Coast, which processes millions of tons of goods destined for store shelves throughout the region. Long-range projections from the Port Authority of New York and New Jersey show cargo volumes doubling or tripling by 2050 compared to 2019.

Furniture, followed by plastics and other similar articles, were the top two imported types of goods through the port in 2024. Vehicles and parts were followed by wood pulp as the two highest ranking exports.

>> Read More: NJ Port Economy Braces For Potential Impacts Of Trump Tariffs

MALLS

Simon Property Group – the nation’s largest mall owner – recently predicted that the Trump administration’s tariffs could push more retailers into bankruptcy this year.

The company said tariffs are “clearly having an effect on retailers” during a fourth-quarter earnings call last week, NJ Advance Media reported.

Simon Property Group owns The Mall at Short Hills, The Mills at Jersey Gardens, Menlo Park Mall and Rockaway Townsquare.

>> Read More: Popular Store Closing 'Soon' At Ailing Mall In North Jersey

WINE AND ALCOHOL

Trump has suggested imposing a 200 percent tariff on European wine, champagne and spirits. The president threatened to roll out the tariffs last year after the European Union said it was considering a 50 percent tariff on American whiskey in response to Trump’s steel and aluminum tariffs.

Trump argued that the increased tariff would boost the wine and champagne industry in the United States. New Jersey is home to dozens of wineries and vineyards spanning the state. New Jersey ranks 7th in wine consumption, according to a 2023 analysis by Vine Pair. In per capita consumption, New Jersey ranks 12th, with the average person consuming more than half a gallon of wine each year.

>> Read More: Some Wine, Alcohol Products Could Soon Cost More In NJ (Here's Why)

COFFEE

Another possible Garden State industry that will likely be impacted by Friday’s court decision? Coffee.

Last year, a business owner in North Jersey said that U.S. coffee importers, roasters, cafés and customers will be the ones who will pay the price from Trump’s new tariffs.

“Tariffs are paid by U.S. importers, and the cost trickles all the way down to you,” Paper Plane Coffee Co. founder and co-owner Jonathan Echeverry said.

“These decisions directly affect small farmers, exporters, importers and roasters,” Echeverry said. “Many of us already work on thin margins, trying to balance fair sourcing with quality and accessibility. And when the government imposes large tariffs with little clarity or coordination, the people who suffer most are the ones with least leverage.”

>> Read More: Trump Tariffs Will Cost Coffee Drinkers, NJ Business Owner Says

SHOES, IPHONES AND BANANAS

About 99 percent of all shoes sold in the United States are imported, with the majority coming from China and Vietnam. About 2.4 billion pairs of shoes a year — enough for seven pairs a person — are imported into the United States every year, according to the Footwear Distributors and Retailers of America an industry trade group.

Top-line iPhones could cost about $2,300 if Apple passes the full brunt of the tariffs on to consumers, according to projections from Rosenblatt Securities, Reuters reported. Even the cheapest iPhone 16 model could increase to $1,142, up 43 percent from the $799 U.S. launch price.

A significant amount of fruits and vegetables — especially tropical fruits and out-of-season produce — come from trading partners. Mexico is the largest of the trading partners for these foods, including 88 percent of the avocados eaten in the United States. The United States is also the top importer of bananas, with 40 percent coming from Guatemala.

• Read More: Tariffs May Make These 10 Things Pricier In NJ
• Read More: New Trump Tariffs And NJ: What Products Could Cost More Locally?

This article contains reporting from the Associated Press

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