In a landmark ruling on 20 February, the US Supreme Court declared that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unconstitutional. The decision has been widely welcomed by the business and professional events sector, particularly by the Exhibitions & Conferences Alliance (ECA), which represents the public policy interests of the US business and professional events industry.
The Court ruled 6-3 against tariffs introduced by President Donald Trump, stating that the IEEPA “does not authorise the president to impose tariffs.” The judgment marks a significant development in US trade policy and is expected to have far-reaching implications for industries affected by import duties.
ECA Welcomes Relief for the Events Industry
In its official statement, the Exhibitions & Conferences Alliance described the ruling as “welcome news” for the entire business and professional events ecosystem.
According to ECA, the tariffs implemented under IEEPA created increased costs and operational uncertainty for event organisers, suppliers, venues, exhibitors, and attendees. The Alliance emphasized that the financial burden was particularly severe for small businesses, which account for 99% of companies in the events industry and approximately 80% of event exhibitors across the United States.
“These tariffs have placed unnecessary strain on our industry,” the statement noted, highlighting how higher import costs directly impacted exhibition materials, technology equipment, staging infrastructure, and other essential event supplies.
Impact on Small Businesses and Exhibitors
Small and medium-sized enterprises (SMEs) form the backbone of the US events industry. Many rely on imported goods such as custom-built exhibition stands, lighting systems, audiovisual equipment, and promotional materials. Increased tariffs translated into higher production costs, squeezing profit margins and limiting participation in trade shows and conferences.
Event exhibitors, in particular, faced elevated costs for booth construction and logistics. For many smaller firms, this meant scaling down their presence at exhibitions or withdrawing altogether, ultimately affecting industry growth and innovation.
By declaring the IEEPA tariffs unconstitutional, the Supreme Court has provided clarity and potential financial relief to thousands of businesses that depend on predictable trade conditions.
Legal Background of the Case
The central issue before the Court was whether the International Emergency Economic Powers Act granted the president authority to impose tariffs without explicit congressional approval. In its majority opinion, the Supreme Court concluded that the Act does not provide such authority.
The 6-3 ruling firmly rejected the argument that emergency economic powers extend to the unilateral imposition of tariffs. The justices had previously heard arguments regarding the legality of these tariffs in November before issuing their decision.
President Trump defended the tariffs as being within his rights, maintaining that he possessed the authority to set trade duties and expressing frustration over waiting for the Court’s ruling.
Trade Policy Uncertainty and Industry Competitiveness
Beyond immediate financial costs, ECA stressed that uncertainty surrounding trade policy has long-term implications for the competitiveness of the US business events industry.
Trade shows and international conferences rely heavily on global supply chains and cross-border participation. Tariffs can deter international exhibitors and attendees, increase logistics expenses, and complicate procurement processes for organisers.
The ruling is expected to reduce volatility and restore confidence among international partners, vendors, and stakeholders in the US events sector.
ECA Calls for Pro-Trade Policies
Following the decision, the Exhibitions & Conferences Alliance urged policymakers to adopt trade policies that prioritize affordability, predictability, and global competitiveness.
ECA advocated for:
- Stronger commitments to free trade agreements
- Elimination of tariffs and subsidies
- Reduction of non-tariff barriers with US trading partners
The Alliance emphasized that a stable and open trade environment is essential for maintaining the United States’ leadership in hosting global exhibitions, conventions, and professional gatherings.
Broader Economic Implications
The Supreme Court’s ruling may influence future presidential actions related to economic emergency powers. By clarifying the limits of executive authority under IEEPA, the Court has reinforced congressional oversight in matters of trade policy.
For the broader economy, the decision could signal a shift toward more structured and legislatively approved trade measures, reducing the likelihood of abrupt tariff changes that disrupt industries.
In sectors like business events—where long-term planning, international coordination, and complex logistics are critical—predictable policy frameworks are especially important.
Industry Outlook Following the Ruling
Industry stakeholders are now assessing how quickly tariff-related cost pressures may ease. Event organisers anticipate improved budgeting accuracy, while exhibitors and suppliers expect more stable pricing structures.
As global exhibitions and conferences continue to play a crucial role in driving innovation, investment, and business networking, reduced trade barriers could stimulate renewed growth and international participation.
For the US business and professional events industry, the Supreme Court’s decision represents not only legal clarity but also a potential turning point toward more competitive and affordable operations.
With policymakers now under pressure to implement balanced trade reforms, industry leaders remain hopeful that future measures will strengthen the United States’ position as a premier destination for international exhibitions and conferences.
