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Woldenberg: The Supreme Court was skeptical of that reading of the law
11/6/2025, 12:10:19 PM
Economic Summary
- The IEPA tariff authority is contested as lacking legal basis; opponents say it effectively allows the president to levy taxes on imports without congressional approval, raising constitutional and regulatory concerns.
- The speaker's company reported zero IEPA tariff expense in 2024, expects nearly $14 million in cash outlays in 2025, and anticipates that cost could roughly double the following year, creating acute liquidity pressure.
- Because domestic production is not economically viable for this company, tariffs cannot realistically drive immediate onshoring; instead the firm will ration inventory and cut discretionary spending to preserve cash.
- If firms recover paid tariffs via refunds, that cash infusion could be redeployed into hiring, capital expenditures, and business expansion, producing a stimulative effect across many small and mid-sized businesses.
Bullish
- Tariffs could incentivize onshoring and protect American jobs and domestic production.
- Tariffs may produce government revenue that proponents argue supports domestic industry policy.
Bearish
- IEPA-imposed tariffs act like an unexpected tax on imports, raising costs for domestic businesses.
- Tariffs will materially reduce cash flow for affected firms, forcing cuts to inventory and investment.
- Onshoring is not economically viable for some manufacturers, so tariffs instead punish operations and employment.
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