WASHINGTON — The Supreme Court on Friday invalidated several of former President Donald Trump’s expansive tariffs, a ruling that could lead to refunds for importers hit by the levies. Justices ruled 6-3 that the administration overstepped its authority under Section 232 of the Trade Expansion Act of 1962 when imposing duties on steel, aluminum and other goods from major trading partners including Canada, Mexico and the European Union.

The tariffs, rolled out in 2018, affected billions in imports and sparked retaliation from affected nations. Importers now have 90 days to file claims with the U.S. Court of International Trade for reimbursements, according to court documents. ‘This ends years of uncertainty for businesses,’ said Trade Court Judge Jane Restani in a related filing.

Business groups hailed the decision. The National Association of Manufacturers called it a ‘victory for fair trade,’ estimating potential refunds could top $10 billion. U.S. Chamber of Commerce President Suzanne Clark added that the ruling ‘restores balance to executive power on trade.’

The economy showed fresh signs of weakness alongside the tariff news. The Commerce Department reported fourth-quarter GDP growth at just 1.2% annualized, well below the 2.1% economists polled by Reuters had expected. Consumer spending, which drives two-thirds of the economy, rose only 0.8%, the slowest since early 2024.

Inflation pressures lingered into year-end. The personal consumption expenditures price index climbed 2.7% in the quarter, above the Federal Reserve’s 2% target. Core inflation, excluding food and energy, hit 3.1%, officials said. Fed Chair Jerome Powell noted last week that rate cuts might slow if price data stays elevated.

Wall Street reacted swiftly. The S&P 500 dipped 0.5% Friday, while the dollar strengthened against the euro amid tariff relief. Bond yields rose as investors bet on fewer Fed rate reductions in 2026.

The tariff case stemmed from lawsuits by U.S. Steel Corp. and aluminum importer Novelis Inc., who argued the duties violated congressional intent. Trump’s team had justified them as national security measures, but the court found insufficient evidence tying imports to defense risks.

Broader implications loom. Remaining tariffs on China, imposed under Section 301 for intellectual property theft, face fresh legal scrutiny. Analysts at Goldman Sachs predict up to 20% of those could fall if similar challenges succeed.

Economists tied the weak GDP to fading post-pandemic demand and higher borrowing costs. Exports dropped 1.5% in the quarter, hurt by a strong dollar. Business investment contracted 0.3%, reflecting caution over policy shifts after the November election.

Federal Reserve officials meet next week to assess data. Markets price in a 75% chance of a quarter-point rate cut in March, down from near-certainty before the GDP release, according to CME FedWatch data.

President Joe Biden’s administration welcomed the ruling but stressed ongoing trade enforcement. White House economic adviser Jared Bernstein said duties on adversarial nations would stay ‘where justified.’

Refunds could inject cash into corporate balance sheets just as holiday sales disappointed retailers. Walmart and Target reported softer-than-expected December traffic, blaming price sensitivity.

The decision caps a turbulent week for markets. Earlier, a Labor Department report showed jobless claims at 220,000, steady but pointing to cooling labor demand. Factory activity in the Midwest contracted for a sixth month, per the Chicago PMI.

Trump, campaigning in Iowa, blasted the court as ‘activist judges’ on social media. His allies in Congress vowed legislation to expand tariff powers if he returns to office.

For importers, relief arrives late. Many passed costs to consumers, fueling inflation debates through 2025. Now, with prices sticky and growth faltering, the Fed walks a tightrope.