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What the Supreme Court's tariff ruling could mean for your wallet

14 5
21.02.2026

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Supreme Court axes tariffs

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What the Supreme Court’s tariff ruling could mean for your wallet

GRAND RAPIDS, Mich. (WOOD) — Don’t expect a cheaper grocery bill tomorrow, even after the Supreme Court struck down most of President Trump’s tariffs.

Friday’s ruling from the country’s top court decided that the president did not have the authority to impose tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). Trump called the decision “deeply disappointing” and announced he’d sign an executive order to enact a 10 percent global tariff.

There’s still a lot of uncertainty about what tariffs will look like moving forward, economic expert Paul Isely with the Grand Valley State University Seidman College of Business said, and Trump’s announcement will create a new legal challenge.

The court’s ruling also does not make clear whether the country will be facing a nearly $3 billion-bill to pay the tariffs back.

So while major retailers will likely have to pay lower costs moving forward — and may even be getting some of the tariffs paid back — it will be a bit longer before consumers start seeing a change.

“I don’t think this will change much at all for a little while,” Isely said. “Remember when the tariffs were put on, it took months before they started to affect things, so this isn’t going to be an immediate change for most types of goods.”

Shoppers could start to see lower prices around back-to-school season, he said, but that will depend on how tariffs are reinstated. Trump’s announcement of a 10 percent global tariff could mitigate potential price drops, Isely said.

“We know that tariffs have caused some price increases, but mostly what they’ve done is decrease the profit margins of U.S. firms,” Isely said. “It’s not the foreign countries that appear to be paying this, it’s not U.S. consumers that appear to be paying most of them. Who appears to be paying most of them are businesses, so we expect that this will have a positive effect on small businesses relatively quickly here in the United States.”

States may feel varying impacts depending on their own economies. Michigan, for example, will be less impacted by Friday’s decision than other states, Isely noted, as the court’s ruling does not apply to most of the tariffs placed on the automotive industry, which last year had Ford and GM paying some $5 billion. Plus, much of the state’s trade is with Canada and Mexico, he said, which has lower tariffs due to the United States-Mexico-Canada Agreement, a trade deal Trump signed during his first term.

Isely also noted that Friday’s ruling could impact the country’s relationship with the world.

“It’s going to be very interesting how this plays out in the international world, how they treat the Trump administration, how powerful we are at being able to negotiate with other countries, given this rebuke of a tool that Trump had been using to force some of these negotiations,” he said.

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