The news: The US Supreme Court ruled Friday that President Donald Trump doesn’t have the emergency authority under the International Emergency Economic Powers Act (IEEPA) to impose most of his administration’s tariffs, per NBC News. The ruling was 6-3.

• Overturned tariffs include country-by-country “reciprocal” duties and a 25% levy targeting imports from Canada, Mexico, and China.
• That includes tariffs affecting major manufacturers of semiconductors, PCs, and consumer electronics, such as Nvidia, Dell, and Apple.

Trump pledged to continue pursuing global tariffs under other trade acts.

Looking back: Before the ruling, the Trump administration’s trade policies were positioned to reshape technology and AI ecosystems, as well as advertising and retail sectors. Nearly two-thirds (29%) of all goods that entered the US were subject to the IEEPA tariffs as of November, per a New York Times analysis of Census Bureau trade data.

Because AI development is hardware-intensive, and because hardware companies are reliant on the global supply chain for manufacturing and development, even modest cost increases add up quickly in the sector. The policy environment translated into:

• Higher capital expenditures for AI data centers and cloud infrastructure.
• Increased hardware costs for enterprises and consumers.
• Pressures to shift operations or sourcing to domestic locations to avoid tariff exposure.

Uncertain economic and trade conditions put pressure on consumer spending and pushed some companies to delay products or scale back investments. For example, laptop maker Framework temporarily paused US laptop sales over tariffs impacts, and Nintendo delayed preorders for the Switch 2.

Implications for the tech industry: While the direct impact of the overturned tariffs will be gradual, easing cost pressures should stabilize pricing across import-heavy categories like semiconductors, networking equipment, and consumer electronics.

The Supreme Court didn’t clarify whether previously collected IEEPA-based duties will be refunded to importers, per The Associated Press. In the case that refunds are issued, companies may use potential cost relief to defend or gain market share. In higher-margin segments, savings could support profitability and long-term AI investment.

As pressures ease, tech vendors are more likely to hold pricing steady rather than push further increases, especially in competitive segments like PCs, smartphones, and cloud services.

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