The Westchester Brief | 03.18.26: Tariffs Hit Westchester Small Businesses

The Supreme Court struck down $175 billion in tariffs—and the administration replaced them with a new surcharge the same day. Westchester businesses are caught between rising costs, uncertain refunds, and a county budget that was already running short. Plus: White Plains affordable housing lottery results, a major biotech campus opens in Rye, and minimum wage hits $17 in Westchester.

In This Episode:
0:00 Cold Open: $175 billion in illegal tariffs
0:40 The SCOTUS ruling on IEEPA
1:30 The immediate replacement surcharge
2:30 Westchester small business roundtable
3:30 County budget impact: sales tax shortfall
4:30 Quick Hits: White Plains housing, NYBCe Rye campus, minimum wage
6:30 Closing remarks

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Transcript

SPEAKER_00 0:00

one hundred seventy five billion dollars. That is how much the federal government may have collected in tariffs that the Supreme Court just ruled were illegal. And if you run a small business in Westchester, you have already been paying the price. This is the Westchester Brief. I'm Jim. Let's get into it. On february twentieth, the Supreme Court ruled six to three that the tariffs President Trump imposed under the International Emergency Economic Powers Act were unlawful. Chief Justice Roberts wrote the majority opinion. The court held that the law known as IE EPA does not give the President authority to impose tariffs. That ruling should have been a relief for businesses. But here is what actually happened next. On the same day the decision came down, the administration issued a new proclamation under Section 122 of the Trade Act of 1974, imposing a 10% temporary import surcharge on products from all countries. That surcharge took effect on February 24th and runs for 150 days through July 24th, so the tariffs were struck down and replaced within hours. For Westchester small businesses the legal back and forth in Washington has real consequences on the ground. On February 27th, a roundtable at the Westchester County Center brought together business owners, legal experts, and elected officials to talk about the damage. The picture they painted was stark. Importers who paid IEEE PA tariffs may be entitled to refunds, but the mechanics of getting that money back have not been announced. Neither the Supreme Court's decision nor the executive order revoking the tariffs address the refund process. That question is now before the United States Court of International Trade. Legal experts at the roundtable estimated that$175 billion in refunds could be owed, but businesses should not expect quick resolution. Meanwhile, prices have already been passed through construction materials, consumer goods, restaurant supplies, retail inventory. Westchester businesses across sectors report that they have already raised prices or are planning to the uncertainty itself is a cost when you do not know what the tariff rate will be in 60 days. You cannot plan inventory, negotiate contracts, or set prices with confidence. This connects directly to the county's broader fiscal picture. Westchester's 2026 budget was built against a$197.7 million dollar projected gap, driven in part by tariff related economic uncertainty. Sales tax collections, which fund a significant portion of county services, came in flat through September of 2025,$26.3 million below budget. If consumer spending softens further because of price increases, that gap widens. The county has already cut department budgets by 8%, eliminated 180 positions, and raised property taxes for the first time in seven years. There is not much more room to absorb shocks. The next date to watch is July twenty fourth when the temporary surcharge is set to expire. Whether it actually expires or gets extended or replaced will determine the next chapter of this story for every business owner in the county. Here is what else is happening across Westchester this week. The affordable condominium lottery for 99 Church Street in White Plains held its drawing on Monday, March 17. Sixty eight newly renovated units are available to households earning at or below 100% of area median income. A second building at 6 Cottage Place held its lottery earlier this month with 40 units. Move-ins at both buildings are expected to begin in July. The developer is WBP Development with funding from New York State Homes and Community Renewal, the county, and the city of White Plains. New York Blood Center Enterprises opened a 187,000 square foot campus at 601 Midland Avenue in Rye. The facility houses blood collections, cell therapy manufacturing, and life sciences research through the Lindse F. Kimball Research Institute. It is one of the largest biotech investments in the county in recent years, and the minimum wage in Westchester increased to$17 per hour as of January 1st, matching New York City and Long Island. The rest of the state moved to$16. If you employ hourly workers or manage a small business make sure your payroll reflects the change. That is your Wednesday. Subscribe to the newsletter at ILiveHereWestchester.com for the full rundown every week. I'm Jim and I live here. I'll see you tomorrow