The U.S. Supreme Court on Friday ruled that U.S. President Donald Trump‘s sweeping tariffs were illegal because he lacked authority to impose them under the International Emergency Economic Powers Act (IEEPA).

The strike down of Trump’s tariffs now raises questions over what happens to the reciprocal tariff deals that are in place, as well as how handle potential refunds to importers.

“Today’s Supreme Court decision marks an important step toward creating a more predictable and competitive environment for American businesses and consumers,” said Matt Priest, president and chief executive officer of the Footwear Distributors and Retailers of America (FDRA). “By removing these widespread tariffs, the footwear industry can redirect billions of dollars toward innovation, job creation, and affordability for families across the country.”

Priest said the ruling “provides relief at a time when cost pressures have been significant, and it opens the door for continued collaboration between industry leaders and polcy makers to ensure trade policy reflects today’s global marketplace.”

The FDRA’s CEO said the trade organization looks forward to “working with the Trump Administration and Congress to build on this progress and create a framework that benefits consumers, retailers, and manufacturers alike.”

The National Retail Federation’s David French, executive vice president of government relations, said: “The Supreme Court’s announcement today regarding tariffs provides much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity. Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families.”

French said NRF is urging the “lower court to ensure a seamless process to refund the tariffs to U.S. importers.” He noted that the refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”

The Retail Industry Leaders Association’s president and chief executive officer Brian Dodge said the decision to use IEEPA to impose broad tariffs opens the door for the Administration to engage industry more closely on trade policy to create the stability and predictability that American retailers and consumers need. He added that while the nation’s retailers support the Administration goal to grow the economy, create jobs and protection national security, what’s needed is the inclusion of industry stakeholders to work together to “chart a trade agenda that considers the needs of everyday Americans while also protecting America’s long-term interests.”

Meanwhile, the We Pay the Tariffs coalition of over 800 small businesses has launched a national sign-on letter that calls on the Trump Administration and Congress to deliver “full, fast and automatic” tariff refunds.

The coalition’s executive director Dan Anthony said the Supreme Court decision represents a “tremendous victory for America’s small businesses” that have born the crushing weight of the tariffs.

“They’ve taken out loans just to keep their doors open. They’ve frozen hiring, canceled expansion plans, and watched their life savings drain away to pay tariff bills that weren’t in any budget or business plan. Today, the Supreme Court has validated what we’ve been saying all along: these tariffs were unlawful from the start,” Anthony said.

Anthony added that small businesses are worried that the Administration will respond to the defeat by simply reimposing the same tariff policy through other means.