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The wait may soon be over for business leaders anticipating a Supreme Court ruling on President Trump’s tariffs.
The high court recently said it expects to issue opinions today, Tuesday and Wednesday, and one of them could be on whether Trump exceeded his authority by invoking the International Emergency Economic Powers Act without Congress’s approval to impose tariffs on virtually every country around the world.
Executives have tried to offset tariffs by pushing back on suppliers that attempt to pass along the costs or moving to new ones. Some have also raised prices. If the court overturns the tariffs, business margins may improve and brands may review pricing plans. But a decision against the tariffs would bring more questions, such as whether the Trump administration will rely on other authorities to deploy levies on a similar scale and whether businesses would get their money back.
Ahead of the decision, we spoke with finance chiefs to hear their thoughts on the case. Here’s what they said:
Ethan Allen CFO Matt McNulty
The tariffs under consideration by the court represent about 40% of Ethan Allen’s exposure, which if overturned would amount to an annual savings of around $8 million, Ethan Allen executives said last month. For instance, if the tariffs are deemed illegal, that would reduce manufacturing costs tied to a 10% tariff on goods from Honduras, where the furniture maker sources some of its wood products, McNulty told us.
But Ethan Allen isn’t holding back on purchases while waiting for a decision, mainly because unknowns will likely linger. “If they’re invalidated, what is the plan?” the CFO said, noting that possibilities include additional levies. “It’s anyone’s guess right now.”
Hasbro CFO Gina Goetter
An end to the tariffs could help Hasbro, but the company isn’t counting on an immediate positive impact if that happens, said Goetter, who is also the company’s chief operating officer. The toymaker typically starts planning inventory for the holidays, a big sales period for Hasbro, midway through the year, with most retailers rolling products out starting in August, she said.
“So if there were to be a reversal, if there were to be some sort of reduction in tariffs, there could be some impact in ’26, but the benefit will really, you’ll see that in 2027,” she said. So for now, Hasbro’s financial plan doesn’t account for any tariff unwinding or refund, according to Goetter.
“We’re assuming that, you know, for planning purposes, it sticks with us,” she said.
Levi Strauss CFO Harmit Singh
Levi Strauss raised prices last month in response to tariffs and plans additional increases this month. The apparel maker’s executives say there is still more room to raise prices on newer and higher-end items.
If the Supreme Court overturns the levies, Levi Strauss would look at whether to hold or even reduce some prices, said Singh, who is also the company’s chief growth officer. “It’s definitely a lever we can look at,” he said of pricing. “If there’s a change in the tariff structure, we look at the options with the consumer at the forefront of all that discussion.”
—Jennifer Williams
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