The promise of a quick resolution to a legal battle over President Trump’s tariffs hangs over American businesses, large and small, as the Supreme Court weighs the legality of his actions. For Beth Benike, owner of Busy Baby, a Minnesota-based company specializing in baby products, the stakes are particularly high. What began as a solution to a common parenting problem – dropped utensils and messy mealtimes – has become a casualty of shifting trade policies and economic uncertainty. The core question before the court is whether Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when imposing tariffs, a decision that could mean refunds for businesses like Benike’s, but also opens the door to further tariff volatility.
Benike’s story began a decade after her ten years of service in the U.S. Army. Inspired by the challenges of feeding her own child, she developed the Busy Baby Mat, a portable, all-in-one placemat designed to keep babies entertained and contained during meals. “I had the idea for an invention that would stop babies from dropping and throwing everything on the ground [during meals] and provide a clean place for their food when you take them out to the restaurant—kind of keep them busy,” Benike recalled. She launched the business in 2017, initially crafting prototypes by hand. A 2021 appearance on Shark Tank and subsequent deals with major retailers like Target and Walmart propelled Busy Baby to growth, employing five people at its peak.
“Liberation Day” Tariffs and a Supply Chain Disrupted
That momentum stalled abruptly in April 2025, when President Trump announced his “Liberation Day” tariffs. Benike had a container of $160,000 worth of product ready to ship from China. The new tariffs threatened to add an additional $230,000 to the cost, an amount she simply couldn’t afford. “I would have had to come up with that money within the 30 to 45 days it takes for this stuff to get to America,” she said. The product remained stuck in China until Trump later reduced the tariffs, though they remained higher than pre-2025 levels. The delay resulted in two months of lost sales and forced Benike to make challenging choices, including reducing her staff from five to three employees.
“I cashed in my retirement and didn’t pay myself all summer, went through all my family savings to just stay afloat,” Benike explained. She estimates the tariffs caused a loss of at least $500,000 in revenue. The uncertainty surrounding the tariffs has been a constant burden, forcing her to navigate a volatile landscape where costs can change dramatically with little notice. Benike is now planning to join a class action lawsuit to expedite potential refunds, but her primary concern is the possibility of the Trump administration reinstating tariffs through other legal avenues.
The Broader Impact on Small Businesses
Benike’s experience is not isolated. Dan Turner, owner of Turner Hydraulics in Pennsylvania, faced a similar predicament. In early 2025, he ordered a custom component from China for a U.S. Steel mill, anticipating a 25 percent tariff. The announcement of the “Liberation Day” tariffs threatened to increase the cost by $84,000 on a $49,000 item. “We’re just hoping either the ship sinks or somebody comes to their senses before it hits the dock,” Turner reportedly said last year. While the tariffs were later reduced, Turner still incurred a financial hit and has been forced to seek alternative suppliers, even considering options in Denmark, only to be met with new geopolitical uncertainties. His company’s revenue declined by more than 10 percent in 2025.
Hanna Scholz, owner of Bike Friday, a custom bicycle manufacturer in Oregon, has also felt the impact. Despite building her bikes entirely in the United States, Scholz relies on imported components. She saw U.S. Sales drop by approximately 17 percent in 2025. “Chaos is really expensive,” Scholz stated. She was unable to provide raises to employees, cut back on perform hours, and left two vacant positions unfilled due to the economic strain.
The Question of Who Pays for Tariffs
The debate over tariffs extends beyond the immediate financial impact on businesses. A study released by the Kiel Institute for the World Economy in January found that 96 percent of the cost of Trump’s tariffs is borne by American importers and consumers, while foreign exporters absorb only 4 percent. U.S. Tariff revenue reached roughly $24 billion per month in 2025, significantly higher than the $24 billion collected in 2024, according to Reuters. Trump himself has repeatedly claimed that tariffs benefit the U.S. Economy, stating, “We got rich because of tariffs,” during a January meeting with House Republicans. He has also threatened to challenge any Republicans who oppose his tariff policies.
The Supreme Court’s decision, expected soon, could offer some relief to businesses impacted by the tariffs. A ruling against Trump could allow companies like Busy Baby to recoup some of the $50,000 in tariffs Benike has already paid. Though, the long-term outlook remains uncertain, with the possibility of the Trump administration finding alternative ways to impose tariffs. The fundamental issue, as Scholz put it, is a lack of stability. “I do suppose that the Supreme Court actually ruling that this use of trade tariffs was done illegally and is not appropriate—needs to be rolled back—would be a show of clear responsibility that institutions aren’t completely broken.”
As the court deliberates, businesses across the country are bracing for the outcome. The uncertainty surrounding trade policy continues to create a challenging environment for small business owners, forcing them to navigate a complex web of regulations and potential costs. The next step will be the Supreme Court’s ruling, which is expected to set a precedent for the use of presidential authority in trade matters.
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