By Kolby LaMarche

A small Burlington company has played a pivotal role in a major U.S. Supreme Court decision that has just recently curtailed President Donald Trump’s broad tariff authority, offering some relief to local businesses and potentially billions in refunds nationwide, leaders say. 

On February 20, the high court ruled 6-3 that the president exceeded his powers under the International Emergency Economic Powers Act (IEEPA) when he imposed sweeping “Liberation Day” tariffs on imports from nearly all U.S. trading partners. The decision struck down the tariffs as lacking congressional approval, marking a significant check on executive overreach in trade policy.

At the heart of the case was Terry Precision Cycling, a Burlington-based maker of women’s cycling apparel and gear. 

Founded in the 1980s by Georgena Terry to address fit and performance needs often ignored in mainstream cycling products, the company has built a reputation for innovative jerseys, shorts, bibs and other items designed specifically for women riders. 

With about 20 employees in its downtown Burlington office and additional manufacturing in Washington state, Terry sources materials globally while emphasizing domestic assembly and a commitment to quality that resonates with Vermont’s outdoor-oriented community, according to the company.

The tariffs, enacted last year via executive orders, hit Terry hard. Imported fabrics and components faced steep duties—25 percent on many goods from Mexico and Canada, 20 percent from China, and varying rates elsewhere—adding over $200,000 in unplanned costs in 2025 alone. 

Public projections showed that figure could climb to $1 million or more in 2026 without intervention, forcing price hikes on popular items and threatening the company’s slim margins in a competitive niche market.

CEO Nik Holm described the levies as an “existential threat,” noting the firm lacked the scale of larger corporations to absorb or negotiate around the added expenses. 

Terry joined four other small businesses in a lawsuit filed by the Liberty Justice Center in the U.S. Court of International Trade in April of 2025. 

The plaintiffs argued IEEPA, a 1977 law meant for genuine national emergencies, did not authorize indefinite, unlimited tariffs without legislative input. Vermont joined as one of 12 states supporting the challenge, with Attorney General Charity Clark’s office highlighting the harm to local economies reliant on international supply chains.

Lower courts sided with the plaintiffs: a federal trade court panel invalidated most tariffs in May 2025, and the U.S. Court of Appeals for the Federal Circuit largely upheld that ruling later in the year. The Supreme Court granted review, hearing arguments in November 2025. Justices focused on separation of powers, with several questioning whether the executive could unilaterally reshape trade without Congress.

The February 20 opinion, affirming the lower courts, declared the tariffs unlawful for their “unlimited amount, duration, and scope.” 

The majority stressed that such broad measures require explicit congressional authorization to align with constitutional checks and balances. Dissenters argued for greater presidential flexibility in trade emergencies, but the 6-3 split reflected a clear limit on executive authority.

For Terry Precision Cycling, however, the ruling brings immediate breathing room. Holm called it “welcome news for American small businesses like mine.” The company can now pause further price adjustments and pursue refunds for duties already paid, it says—potentially recovering hundreds of thousands of dollars. 

Vermont officials and business leaders welcomed the outcome. Attorney General Clark praised the ruling as upholding the rule of law, while local groups noted broader benefits for manufacturers, retailers and importers statewide. Joining her, Vermont Treasurer Mike Pieciak posted a video response on social media, hailing the ruling as a victory for small business. 

In response, President Trump imposed a temporary 10 percent global tariff under alternative trade laws and criticized the justices, vowing to continue fighting for his agenda. 

The ruling opens the door to refund processes, likely handled through lower courts, with economists estimating billions could return to affected importers over time.

In addition to tariff concerns, many downtown Burlington businesses have expressed angst in recent years over lowered foot traffic, caused in-part by an increase in downtown crime, as well as delayed or slowed construction and uncertainty over the city’s finances.