With the Supreme Court’s recent decision limiting President Donald Trump’s authority to impose tariffs, one must consider the implications for consumer pricing. “Nothing,” stated Stephanie Roth. That is due to the fact that Trump possesses additional tariff mechanisms at his disposal. The Supreme Court observed that additional avenues are still accessible to Trump, including the statutes that allowed the administration to impose substantial tariffs on steel, aluminum, and various imports — all of which continue to be effective. Many of the tariffs that the Supreme Court has overturned can indeed be substituted with alternative tariffs.
On Friday, Trump declared his intention to implement a 10% global tariff on imports, utilizing Section 122 of the 1974 Trade Act, an authority that remains intact following the high court’s ruling. Even if the administration is ultimately obligated to reimburse companies that paid the overturned tariffs—a matter still in question—it does not imply that consumers will receive refunds for the increased prices they encountered for sneakers, furniture, or other goods that became more costly due to the policies implemented during Trump’s administration.
“Companies are highly unlikely to start trimming their prices as a result,” Roth stated. “Walmart will not issue a reimbursement for the 15% tariff on sneakers purchased from them four months prior.” Analysts do not anticipate the Supreme Court ruling to significantly alter consumer prices — particularly given Trump’s explicit indication that he will not back down. “Firms consistently exhibit hesitance when it comes to reducing prices. Now Trump has given them a perfect excuse not to,” said Scott Lincicome. According to the conservative-leaning Tax Foundation, the tariffs implemented by Trump resulted in an additional $1,000 in tax expenses for the average US household in 2025.
However, the outlook continues to be uncertain. Officials from the Trump administration have yet to determine their strategy for reconstructing the tariff agenda. The effective tariff rate was approximately 10% prior to the Supreme Court’s ruling and now stands at about 4.5%, according to Erica York. That could increase to over 10% if Trump implements Section 122 tariffs at 10% worldwide without exemptions for the 150-day period. However, she observed that numerous companies absorbed Trump’s tariffs and largely refrained from transferring the majority of the tariff expenses to consumers. Even with a decline in the effective tax rate, it is improbable that consumer prices will decrease as a result of the ruling on Friday. “There won’t be a dramatic overnight change in prices,” York stated.