The Supreme Court hit the brakes on President Trump’s tariff agenda on Friday, which could potentially save Americans hundreds of dollars this year – though it appears unlikely the president will be able follow through on his pledge to send out $2,000 tariff dividend checks.
Based on the average tariff rate of 16.9% that was in effect prior to the ruling, the average US household was expected to shell out an additional $1,300 to $1,700 in 2026, according to the Yale Budget Lab.
But in the 6-3 decision, the Supreme Court found that Trump exceeded his presidential authority by using the International Emergency Economic Powers Act (IEEPA) to impose a batch of high tariffs related to trade imbalances and fentanyl smuggling.
Though some other tariffs will remain in place, the end of IEEPA tariffs could cut the anticipated burden on consumers in 2026 by about half, to roughly $600 to $800, John Ricco, associated director of policy analysis at the Budget Lab, told CNBC.
The exact value of the potential savings was up for debate among experts.
“I’m actually shocked that the number wasn’t a little higher on the financial burden to the average American household than $1,000,” Erik Rosica, sales supervisor at OEC Group New York, a global freight forwarding company, told The Post.
“I do agree that the impact of reversing them would hopefully halve it – but again, that’s only if people lower their prices,” Rosica told The Post.
He voiced skepticism businesses will actually cut their prices, however. Firms might adjust prices on smaller items but will be tempted to keep higher rates in place, Rosica explained.
Meanwhile, Friday’s Supreme Court ruling appears to undermine Trump’s promise to send out “tariff rebate” checks by this year’s midterm elections.
The decision means there just won’t be funds to pay for the checks, Rosica said, though he added that “nothing’s off the table.”
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
