Industry news
Heard, Not Decided: What the Supreme Court's November 5 Tariff Hearing Means for Wholesale Toy Buyers
On November 5, the U.S. Supreme Court heard oral arguments on whether IEEPA properly supports reciprocal and fentanyl-related tariffs, with educational toy company Learning Resources among the lead petitioners. No ruling was issued and tariffs remain in effect during review. For wholesale buyers, the signal is to keep costing at current duties, preserve duty records for any future refund, and keep 2027 assortments flexible for either outcome.
In brief
What you’ll learn
No ruling was issued on November 5; the tariffs remain in effect during Supreme Court review, so wholesale buyers should keep costing at current duties and preserve duty records for any future refund.
Overview
On November 5, the U.S. Supreme Court heard oral arguments on whether the president properly used the International Emergency Economic Powers Act (IEEPA) to impose reciprocal and fentanyl-related tariffs on trading nations around the world. One of the case's lead petitioners is Learning Resources, an educational toy company affected by the tariffs. No ruling was issued at the hearing — and for wholesale toy buyers, that distinction is the point: the tariffs remain in effect while the case is reviewed.
What the Court heard
According to The Toy Association's summary, the justices pressed both sides on three questions: do tariffs qualify as "taxes" under IEEPA, how much power should a president have to set tariffs without approval from Congress, and if the tariffs are struck down, how would refunds work? The summary reports a divided tone: some conservative justices signaled support for broad presidential authority for national security emergencies, while others joined liberal justices in questioning whether these "emergency" tariffs would give the president too much unchecked power over taxation and trade.
One exchange matters most for record-keeping. U.S. Trade Representative Jamie Greer confirmed during oral arguments that the government is prepared to issue refunds if the Court invalidates the tariffs. Readiness to refund, however, is not a refund process: how any refunds would work is currently unknown and would be worked out following a ruling.
Why this case reaches beyond one hearing day
The case centers on whether emergency powers meant for national-security situations can be used to impose broad trade tariffs on countries around the world. That is why a toy company leads it: toys are a high-volume, import-dependent category in which a tariff decision changes landed costs across an entire assortment, not just a single line.
The hearing also follows, but must not be confused with, the October 30 U.S.-China understanding that eased the feared tariff jump without yet formalizing a cut. A political understanding can change the direction of negotiations; only a court ruling, or a formal government notice, can change the legal basis on which duties are collected. The Toy Association expects a decision before the New Year, while cautioning that the outcome is unclear.
What happens under each outcome
If the Court upholds the tariffs, IEEPA authority would be reaffirmed, and both the fentanyl and reciprocal tariffs would remain in place. If it strikes them down, in whole or in part, the path is messier: the Administration may be required to issue refunds to affected importers, creating logistical and administrative complexity. At the same time, the White House could reinstate tariffs using alternative legal authorities, including the Trade Act of 1974 and the Trade Expansion Act of 1962, or recharacterize the tariffs as "licensing fees" or "embargoes," which are expressly permitted under that law. The Toy Association's assessment is blunt: tariffs will remain an ongoing tool in the Administration's trade policy, no matter the outcome.
What wholesale buyers should do now
First, do not reprice on the hearing. Tariffs remain in effect during review, so orders should still be costed at the duties actually being collected, not at a hoped-for refund or a future rate. Second, make any future refund claimable: confirm who is the importer of record on each shipment, keep duty payment records with the order file, and ask suppliers or import partners in writing how a refund, if one is ordered, would flow back through the chain. Third, keep 2027 assortments flexible across both branches: ranges built around proven play patterns — light-up, bubble, and sensory formats in several giftable expressions — are easier to adjust than a deep bet on one design if a line's duty treatment changes. Watch for the ruling itself, then any implementing notice with rates, dates, and refund mechanics.
HundredPower, a Hong Kong-headquartered toy and novelty gift exporter founded in 1992, with its own factory in Shenzhen and a catalogue of more than 15,000 SKUs across party favors, light-up toys, and bubble toys, works with wholesale buyers building seasonal assortments around proven play patterns.
Common buyer questions
Frequently asked questions
Did the Supreme Court rule on tariffs on November 5?
No. November 5 was oral argument only; no ruling was issued and the outcome remains unclear.
Do the tariffs change immediately because of the hearing?
No. The tariffs remain in effect during Supreme Court review. Buyers should continue to cost orders at the duties actually being collected until a ruling or a formal notice changes them.
If the tariffs are struck down, will buyers automatically get their money back?
Not automatically. The government confirmed it is prepared to issue refunds if the tariffs are invalidated, but the mechanics are unknown and would be worked out after a ruling — and alternative authorities could reinstate tariffs in another form.
Put the guide to work
Send a clearer toy sourcing brief.
Share the product, expected quantity, target market, packaging, destination and open questions. The HundredPower sourcing team will review the project context before the next quotation step.