CEOs who opposed Trump’s tariffs remain silent after Supreme Court ruling: ‘There’s no upside in speaking up’

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  • In today’s CEO Daily: Diane Brady outlines what lies ahead for CEOs following the Supreme Court’s decision to strike down Trump’s tariffs.
  • The big leadership story: Trump’s immigration crackdown poses risks of labor shortages in key industries.
  • The markets: Declines in Europe as markets react to further tariffs-related chaos.
  • Plus: All the news and watercooler chat from .

Good morning. Now that [the president] used his emergency powers to impose tariffs, what’s next? After all, the U.S. president responded by immediately [invoking] Section 122 of the 1974 Trade Act. And the court [weighed in] on how leaders can recoup the money they paid under a policy deemed illegal. For the moment, at least, America’s protectionist strategy remains in place. So what’s next for leaders?

Bring in the lawyers. Companies need to track every customs duty directly tied to tariffs imposed under the International Emergency Economic Powers Act, which accounts for roughly half of all tariffs. U.S. Trade Representative Jamieson Greer said determining how refunds will be paid is [a task]. Companies will have to not only document that they paid but also calculate the costs they may incur to recover those payments: One manufacturer told me on Friday that he’s not convinced his company will pursue a remedy, as the duties impacted a relatively small portion of his supply chain.

The silence continues. While many CEOs have been reluctant to criticize Trump’s tariffs publicly, they’ve been vocal in their behind-the-scenes complaints. At [an event] a year ago, for example, more than two-thirds of CEOs said they believed the tariffs were illegal, harmful, and would be passed along to customers through higher costs. While the Supreme Court decision may have [challenged] the president’s [authority], it has done little to ease their concerns. “There is no upside in speaking out” against this president, one CEO said when I called him on Friday night. “You do what’s right internally, which includes staying off his radar.”

Protectionism is here to stay. Beyond exploring other policy avenues for imposing tariffs, President Trump has shifted the dynamics of global trade. Tariffs beget more tariffs, and other leaders are feeling pressure to forge new alliances and build up their own infrastructure to keep jobs at home. The administration has said it expects trading partners [to uphold agreements] they forged as tariffs were mounting. Don’t shelve those reshoring plans.

Keep an eye on Costco. As my colleague Phil Wahba points out, Costco’s decision to sue the Trump Administration over Liberation Day tariffs not only positioned it well for refunds but also reinforced its [stance]. Instead of staying silent on a move that many saw as illegal at the time—and which the Supreme Court later confirmed—Costco framed the action as a business decision that impacted its ability to create an optimal selection of merchandise at the best price. Clear communication kept the focus on customers.

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