the Supreme Court of the United States On Friday, she blocked major tariffs imposed by President Donald Trump, a move that could lower costs for American families next year. However, the ruling also makes it unlikely that Trump will be able to move forward with his plan to send $2,000 “tariff dividends” checks.
The court’s decision could ease financial pressure on families
As reported by CNBC, according to John Rico, associate director of policy analysis at the Budget Lab. Before the decision, the average tariff rate was 16.9%. According to the Budget Lab at Yale University, this rate would have cost the typical American family between $1,300 and $1,700 more in 2026.
In a 6-3 ruling, the court said Trump exceeded his authority by using… International Emergency Economic Powers Act (IEEPA) To impose tariffs linked to trade imbalances and fentanyl smuggling. While some definitions remain in place, ending IEEPA-based measures could reduce the projected burden on households by about half to approximately $600 to $800.
Read also: What is IEEPA? The law is at the heart of Trump’s Emancipation Day definitions
“I was actually shocked that the number was not a little higher than the financial burden on the average American family of $1,000,” Eric Ruzicka, a sales supervisor at OEC Group New York, a global shipping company, told The Post.
He added: “I agree that a reversal effect would halve it – but again, that will only happen if people cut their prices.”
Ruzicka expressed doubt that companies, especially clothing retailers and sellers of expensive goods such as furniture, would lower prices so quickly.
Even if companies decide to lower prices, consumers may notice only minor changes to everyday goods. For example, shoppers may choose a paper cup that costs 20 cents less than another option, forcing companies to compete more aggressively.
Some companies have already absorbed part of Tariff costs In recent months, based on consumer and producer price data. As a result, price drops may not be as significant as shoppers expect.
Ruzicka estimated it could take three to six months before customers see noticeable price differences in stores.
The $2,000 customs dividend plan is facing a major setback
The ruling also casts doubt on Trump’s promise to send $2,000 checks to low- and middle-income Americans funded by tariff revenues.
Ruzicka told The Post that the decision likely means there won’t be enough money to cover those payments, though he noted that “nothing is off the table.” Some tariffs remain in place, but the revenues generated from them will not be enough to compensate for the income lost from the repealed measures.
According to the Committee for a Responsible Federal Budget, sending $2,000 checks could cost as much as $600 billion, which is twice the revenue previously expected from all of Trump’s tariffs, including those that have now been rescinded.
Businesses are bracing for uncertainty amid policy shifts
There is also the issue of inventory that has already been produced or shipped under previous tariff rates. The goods currently in warehouses or on boats were acquired when high tariffs were still in effect.
According to the newspaper, some companies may rush to increase production or refill warehouses while prices are lower.
“We saw last year as soon as some tariffs were dropped, let’s just say it was on furniture, everyone scrambled to restock their warehouses,” Ruzicka said.
“They will put in as much water as they can and then find warehouse space where they need it to make sure they have stock at a lower rate,” he added.
At the same time, many business leaders are wary and concerned that the administration may impose new tariffs under a different trade or national security law. On Friday, Trump promised to impose a new law Global tariff 10%which increases uncertainty.
