Crutchfield Asks Supreme Court for Tariff Chaos Relief

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Crutchfield tells Supreme Court of Tariff Issues

One of the largest car audio retailers, Crutchfield, filed a brief with the Supreme Court, asking for relief from the ups and downs of tariffs, which are preventing its business from being able to plan ahead, it said.  

The ‘chaos and uncertainty resulting from wild gyrations in the tariffs make rational business planning impossible,’ said the brief, which was filed last Friday, according to CBS19 News.

Crutchfield imports approximately 60 percent of the goods it sells.  It said much of its merchandise is not available from US suppliers, so it must be imported.

The Crutchfield brief was filed in support of a group of US retailers in the case of Learning Resources v. Trump, challenging Trump’s tariff authority.  On November 5, the Supreme Court will hear oral arguments on the case. President Trump said the case is so important that he might attend the hearing.

The brief said, “If tariffs can be imposed, increased, decreased, suspended or altered, not through the deliberate legislative process in which both chambers of Congress must agree and the President must sign the legislation, but instead through the changing whim of a single person, then Crutchfield cannot plan for the short term, let alone the long run, because it cannot possibly predict what the household electronics it sells will cost,” according to CBS19 News.

Crutchfield said it must make decisions on the quantities of products to order months in advance. If the President has authority to change tariffs on a dime, this can harm retailers who have already made irrevocable decisions on ordering, sourcing and pricing.

The US has collected nearly $90 billion in tariffs.  The US is estimated to bring in $4 trillion in tariffs over the next decade, said CBS19 citing the Congressional Budget Office,

On the other hand, in a Fox News interview on Sunday, Trump said that if the Supreme Court determines the tariffs are unconstitutional, “the U.S. will struggle economically for years,” according to Fox Business.

Simply put, the Supreme Court will decide whether a 1977 law called the International Emergency Economic Powers Act (IEEPA), gives the President authority to impose tariffs on imports. Lower courts have ruled against the President’s power to levy such tariffs. The Trump administration said it can impose them as they are in response to US trade deficits, which it calls a “national emergency.”

Source: CBS 19 News

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7 Comments

  1. As an American manufacturer of 29 years, my business is booming. My sales are up over 40% this year. I’m expanding from 42,000 ft2 to 102,000 ft2 and hiring 40 more employees next year. It’s time to put America first.

  2. Crutchfield doesn’t import anything, their suppliers do. Maybe if Crutchfield hasn’t supported all of the manufacturers that make things in China instead of the United States we would not be in this issue today. Who supports Crutchfield anyway. They simply took business out of the independent dealers mouth over the years.

    1. What a dumb thing to say. If these could be made in the US it would cost so much more to produce. Car amps at $1,000.00 to $2,000.00 per amp retail. Do you really think American workers will work for peanuts. Get real. iPhones would cost $3,000.00.

      1. Not actually the case. Foxcon is building here now. Inabout 3 years when these 20,000 acre buildhouses are open and opperational they will have about 50 employees. AI and robotics will keep the prices the same. The Iphone is now $1500.00 for the top model. It can be made here for that price. US labor is going specialized as AI will take most of the jobs over the next 25 years. Tshirts can stay in China. Appliances and electronics will largly come back.

    2. Crutchfield drives more business to independent brick and mortar stores than just about every manufacturer does. You sir obviously have no idea what you are talking about.

    3. I encourage everyone who thinks these tariffs are such a great idea to get some money and build and qualify a big factory so you can reap the rewards of this policy.

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