| 0:00.0 | Breaking news, the Supreme Court just delivered a major ruling that could impact inflation, |
| 0:05.3 | construction costs, and the broader economy. I'm Kathy Fedke, and this is Real Estate News for investors. |
| 0:13.8 | This is Real Estate News with Kathy Fedke. |
| 0:18.4 | In a six to three decision, the Supreme Court ruled that President Donald Trump did not |
| 0:23.4 | have the authority to impose certain tariffs using a 1977 emergency law, known as the International |
| 0:30.3 | Emergency Economic Powers Act, or IEPA. Chief Justice John Roberts wrote the majority opinion. He said the law does not give a president the power to unilaterally impose broad tariffs. The Constitution gives Congress the power to set tariffs. The court said that power cannot be expanded without clear authorization. The ruling strikes down many of the tariffs imposed under that |
| 0:55.4 | emergency law that includes country-by-country reciprocal tariffs, which ranged as high as 34% on |
| 1:02.4 | some imports, as well as a 25% tariff on certain goods from Canada, China, and Mexico that had been |
| 1:09.6 | tied to fentanyl enforcement. However, not all tariffs |
| 1:13.3 | are affected. Tariffs on steel and aluminum remain in place because they were imposed under different |
| 1:19.3 | laws. For real estate investors, this matters. Tariffs increase the cost of imported goods. That |
| 1:25.8 | includes building materials, appliances, fixtures, |
| 1:29.2 | and even some components used in HVAC systems and electrical equipment. When material costs rise, |
| 1:36.0 | construction costs rise. When construction costs rise, new housing supply tends to slow down. |
| 1:42.0 | Over the past year, tariffs under this emergency authority |
| 1:45.7 | generated about $130 billion in revenue. That's according to U.S. customs data. Now businesses |
| 1:52.5 | that paid those tariffs may seek refunds from the Treasury Department. Hundreds of companies |
| 1:58.1 | have already filed lawsuits. If refunds are issued, that could return |
| 2:02.6 | billions of dollars back into the private sector. The court did not specify how refunds work, |
| 2:09.0 | but the financial impact could be significant. From an investor standpoint, there are a few key |
| 2:14.7 | takeaways. First, this ruling may reduce some inflationary pressure if certain import costs fall. |
| 2:21.0 | Second, it could modestly improve builder margins if material prices ease. And third, it reinforces something important for markets, clarity. |
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