The economic situation has been tenuous at best and during President Trump’s second term, even more frightful with his focus on a tariff war with most of the world. The Supreme Court on Friday struck down those tariffs which Trump enacted through executive order. The vote was 6-3 and generally the justices ruled that Trump exceeded the powers given to him by Congress under a 1977 law providing the President the authority to regulate commerce during national emergencies that are due to foreign threats.

What is still undecided is what should happen to all of the money paid as tariffs already, an estimated $200 billion.

Tariffs are a tax that is put on goods imported into the country. It could be raw materials or finished products.

In a report it was estimated that 90% or more of the tariff’s cost was paid by US firms and consumers with the average tariff in 2025 going from 2.6% to 13%. Corporations are unlikely to eat all of that cost, so it is then passed along to consumers in the form of paying for the tariffs directly or by increased prices.

In a recent order, it was increased by a little over $5 for me, about 10% of the pre-tax price of the item which was a toy. Retailers have had to raise their prices to consumers with many making statements they would be doing so.

There are numerous lawsuits against the government and Trump administration by corporations to recoup the money paid for tariffs, it’s unknown how this Supreme Court decision will impact that.

It’s also unknown if consumers will see any relief in prices due to this decision. It’s not common for corporations to lower prices once they have been raised, so it’s possible the increase retail prices will remain, especially in a continuing uncertain economic outlook.