Supreme Court Kills Trump's Tariffs, But He's Already Planning His Comeback

$175 billion. That's how much the U.S. government might owe companies in tariff refunds after the Supreme Court delivered a stunning blow to Trump's trade agenda on Friday.

In a 6-3 decision, the Court ruled that Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs was essentially an illegal tax on imports—something presidents simply cannot do.

The Legal Earthquake That Shook Trade Policy

The ruling dismantled what had been the cornerstone of Trump's second-term foreign policy. But within hours, Trump fired back at a Friday afternoon press conference, vowing to use an untested provision called Section 122 to reimpose his 10 percent universal tariff.

This isn't just political theater. The Court's decision represents a fundamental clash between executive power and constitutional limits—with real consequences for your wallet and the broader economy.

What This Means for Your Bottom Line

Don't expect immediate relief at checkout. Just as prices took time to rise when Trump first imposed tariffs, the economic effects of this ruling will unfold gradually. Some prices may not fall at all.

But the long-term impact could be substantial. Economists estimate the Court's decision could save the average American household around $1,000 annually while boosting the economy through reduced unemployment and faster growth.

The catch? Not all tariffs are gone. Steel and aluminum tariffs remain in place, and Trump has already telegraphed his next moves.

Trump's Plan B: Limited but Not Powerless

Section 122 isn't nearly as powerful as IEEPA. It comes with caps on both tariff levels and duration. But it's not Trump's only option—he has other trade tools at his disposal.

The bigger question might be what happens to the money already collected. Companies like Costco have already sued for refunds, and more lawsuits are inevitable. The potential tab for taxpayers could reach that staggering $175 billion figure.

The Broader Battle Over Executive Power

This case illuminates a deeper tension in American governance: How much power should presidents have to reshape the economy unilaterally? The Supreme Court's answer—at least when it comes to tariffs—is "less than you think."

For businesses, the ruling creates both opportunities and uncertainties. Import-dependent companies might see cost relief, but the threat of new tariffs under different legal authorities keeps everyone guessing.

Consumers, meanwhile, find themselves caught in the middle of a high-stakes game of legal and political chess.