Potential local impact of Supreme Court tariff ruling

CHATTANOOGA, Tenn. (WDEF)- Earlier Friday , the Supreme Court ruled that President Donald Trump’s sweeping tariffs were unconstitutional.

This has sparked a strong response from the President, as he plans to use other methods to impose them.

However, how will this impact our area?

Here in the Chattanooga area, we have heard from some companies who have previously stated the tariffs were positive for them.

One of those companies was Novonix, a graphite manufacturer here in Chattanooga.

They previously stated that tariffs on graphite from China, the world’s largest manufacturer of that material used in electric vehicle batteries, would help increase production at their plant here.

We reached out to them Friday for a comment on this ruling, but have not heard back.

Dr. Howard Wall, the chair of the UTC Regional Center for Economic Research, says that other industries will be watching the coming actions of the President closely.

Dr. Wall said,  It’s a it’s an odd mix of industries that like tariffs because some of them get protected, but most industries are harmed by tariffs because the raw materials and intermediate goods that they used to make things become more expensive. So certainly auto manufacturers and most manufacturers who use parts to make things are better off with low tariffs.”

Even with the dramatic back-and-forth between the Supreme Court and President Trump on Friday, consumers shouldn’t expect much changes to their spending.

Dr. Wall said,  “The consumer probably won’t really notice that much of a change because the tariffs that were repealed have replaced by other tariffs, albeit a little lower, so it gets lost in the shuffle I think.”