Tariff ruling creates uncertainty for Long Island businesses, consumers

Amy Tedesco, who sells prom dresses and other evening wear at her Plainview boutique, has seen a steady decline in customers since the Trump administration imposed tariffs on most imported goods last year.

Tedesco, who has owned Outrageous Boutique on Manetto Hill Road since 2011, specializes in prom dresses, most of which are made in China. Import taxes have raised prices from $400 per dress, on average, a year ago, to between $600 and $700. They've also limited the selection of gowns in stores because retailers are buying fewer of them at wholesale, she said.

After the U.S. Supreme Court struck down President Donald Trump's far-reaching global tariffs on Friday, Tedesco said, "That's good for us.”

Tariffs are "definitely hurting the sales of the whole entire community of prom because people are turning to buying online and buying cheaper quality now,” she said.

Trade consultants and economists said it was only natural that business owners and consumers on Long Island would feel relief at the prospect of lower import taxes — and therefore, lower retail prices. But the experts warned that price cutting won't happen overnight. 

The 6-3 decision by the nation’s highest court has created “a quagmire” with many unanswered questions, said Thomas A. Cook, managing director of Blue Tiger International Trade Consultants in East Moriches.

“This isn’t over," he said.

Trump imposes new tariffs

Cook and others told Newsday the Supreme Court's ruling only impacts the tariffs imposed by Trump using the 1977 International Emergency Economic Powers Act, or IEEPA. The court said the president exceeded his authority.

Hours after the ruling, at 6:39 p.m., Trump announced on Truth Social that he had signed an order imposing a 10% tariff on all imported goods for up to 150 days. Earlier Friday he justified his action citing Section 122 of the Trade Act of 1974. 

Trump has championed tariffs for decades, accusing foreign countries of dumping cheap products into the U.S. market, which has led to the closure of U.S. factories. He also has used tariffs as a negotiating tool to get countries to acquiesce to U.S. foreign policy.

After the Supreme Court ruling, U.S. companies theoretically are owed refunds of the tariffs they paid, But the court deferred to the U.S. Court of International Trade to determine whether refunds should be paid and what the amount should be.

“The federal government, the Treasury Department, will fight any attempt to force paying refunds,” said Cook, the trade consultant.

'Tariffs aren’t going away'

Bedgear, a Farmingdale-based provider of pillows, mattresses, sheets and other bedding, will file for a refund next week of the “millions of dollars that we’ve paid in tariffs,” said chief executive Eugene Alletto, adding his staff began collecting the necessary documents three months ago.

Alletto said he anticipated the Supreme Court would nullify some of Trump’s tariffs and that the president would respond by imposing new ones.

“Tariffs aren’t going away, and as a company, we’re well positioned to navigate the disruption, the ambiguity,” Alletto said. Bedgear opened a factory in Ontario to continue supplying the Canadian market after trade tensions soared between the United States and its northern neighbor.

Bedgear has more than 70 employees at his headquarters on Sea Lane and is looking to hire 15 more. The company also has several hundred workers each at factories in South Carolina and Utah, where bedding is assembled from fabrics and components made domestically and overseas.

Since Trump returned to the White House a year ago, Bedgear has reduced its imports from Asia.

"We were getting out of China," Alletto said. "If that fabric can be manufactured in another part of the world that has a friendlier relationship with the U.S. and Donald Trump, it's to our advantage."

In Uniondale, the financial services firm Asset Enhancement Solutions LLC helps businesses secure financing. Asset Enhancement recently assisted companies in New York City to raise cash by selling $20 million in tariff-refund claims to hedge funds.

Neil Seiden, the firm's president, said it's anyone's guess how long it will take for the refunds to be paid.

"The administration can make this easy or difficult. The process could take years," he said.

Consumer prices won't fall immediately

The Supreme Court ruling should lead to lower prices for Long Islanders, but probably not return them to pre-pandemic levels, according to economist John A. Rizzo, a Stony Brook University professor.

He predicted the tariffs impacted by the court decision would fall but remain "historically high” compared with tariffs under former Presidents Joe Biden and Barack Obama.

The Tax Foundation, a nonpartisan think-tank in Washington, estimated Trump's tariffs increased the average tax burden of U.S. households by about $1,000 in 2025.

"That would have risen to $1,300 this year,” said Alex Durante, senior economist at the foundation.

For businesses, the tariffs increased not just costs, but also uncertainty with some deciding to pay the tax initially and then having to pass along some of the expense to customers. "This has been quite onerous for them,” he told Newsday.

Trade groups, others hail decision

Business trade groups hailed the Supreme Court decision, with some urging that refunds be issued to businesses.

“Tariffs are nothing more than a tax that ultimately impacts employers, workers and consumers alike,” said Heather Mulligan, chief executive of the Business Council of New York State. “Our economy is stronger when we pursue free trade with clear but necessary guardrails,” she said in a statement, referring to the United States, Mexico and Canada Free Trade Agreement, which faces reauthorization later this year.

David French, executive vice president of the National Retail Federation in Washington, said in a statement the court decision “provides much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity. Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families. We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers,” he said.

New York Attorney General Letitia James was one of a dozen state attorneys general who argued in an April 2025 lawsuit that the Trump administration violated the International Emergency Economic Powers Act by imposing the tariffs.

The Court of International Trade ruled in favor of the attorneys general in May 2025, while the U.S. Court of Appeals affirmed in August that the Trump administration did not have the authority to impose tariffs under the IEEPA.

James said on Friday, "The Supreme Court has agreed that this administration has no authority to impose massive new taxes on a whim. This is a critical victory for the rule of law and our economy."

Gov. Kathy Hochul, a Democrat, lauded the court's action, calling tariffs "an unlawful backdoor tax" on consumers and businesses, "raising prices on everything from groceries to building materials."

Ed Cox, state Republican Committee chairman, declined to comment.