What high court ruling means for L.A.'s economy

The Supreme Court's decision Friday to strike down the majority of tariffs imposed by President Trump could provide some relief to L.A.’s trade-reliant economy — but only if they are not reimposed again through other means.

- BY LAURENCE DARMIENTO

GEORGE WALKER IV Associated Press

PEOPLE WAIT to see President Trump at a rally at Coosa Steel Corp. in Rome, Ga., on Thursday.

The court’s 6-3 ruling that Trump didn’t have the authority to impose tariffs under the International Emergency Economic Powers Act rolled back levies that have upended international trade.

“We've seen that the tariffs have a significant impact on our supply chain, on our manufacturers and especially on our port logistics and trade sector,” said Stephen Cheung, chief executive of the nonprofit Los Angeles County Economic Development Corp.

“I think this decision will have a significant impact on the Los Angeles economy. However, it’s going to take a long time to unravel, so we'll see specifically how everything is going to pan out,” he said.

The tariffs dealt a blow to a large swath of businesses in Southern California and across the state, including farmers, automakers, home builders, tech companies and apparel retailers.

MGA Entertainment, the Chatsworth maker of Bratz dolls, said a little more than half of its products are made in China, while hardware and lumber seller Anawalt in Malibu said the majority of its lumber comes from Canada and nearly all of its steel products are made in China.

After the high court’s decision, Trump, citing other legal authority, imposed a 10% global tariff by executive action and said he would pursue additional levies, including a possible 30% tariff on foreign cars.