The Supreme Court struck down a key part of former President Trump's tariff agenda, ruling he exceeded his authority. This decision could save average American households hundreds of dollars annually by reducing anticipated tariff-related costs by half, but also signals the likely end of his promised $2,000 tariff dividend checks.
On Friday, the Supreme Court delivered a 6-3 decision that significantly curtails former President Trump's tariff policies, finding he exceeded his presidential authority by using the International Emergency Economic Powers Act (IEEPA) to impose tariffs related to trade imbalances and fentanyl smuggling. This ruling is projected to offer substantial financial relief to American consumers. The Yale Budget Lab had previously estimated that, with an average tariff rate of 16.9%, the typical US household would incur an additional $1,300 to $1,700 in costs by 2026. The Supreme Court's decision, by ending these IEEPA tariffs, could halve that anticipated burden, reducing it to approximately $600 to $800 per household. Despite the potential savings, some experts, like Erik Rosica of OEC Group New York, remain skeptical that businesses will pass these savings directly to consumers by lowering prices. Furthermore, the ruling effectively undermines Trump's previous pledge to distribute $2,000 "tariff rebate" checks, as the funds intended for these payments would no longer be available.
