Trump's Tariff Induced Pinch On American Wallets - Here's What Is Likely To Change

US SC Tariff Ruling: The Supreme Court may rule as soon as Friday on whether US president Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA) are constitutional, a decision that could directly affect Americans’ wallets.

In a 6-3 decision, the United States Supreme Court ruled that US President Donald Trump's tariffs imposed on April 2 last year, citing that he exceeded his authority. Further, it noted that the US President required congressional approval to impose taxes on imports

This comes after a dismal US GDP growth of 1.4% in the fourth quarter after rising 4.4% in the preceding period, as per the government's estimate out on Friday.

Also Read: Dow Jones, Nasdaq & S&P 500 React To Trump’s Tariffs Ruling

While US markets buoyed fueled by positive sentiments around global US imposed tariffs being struck down, the US top court ruling will have a direct impact on American wallets.

US Tariff Pain On Consumer Costs

According to several experts, US consumers faced the tariff brunt as result of Trump overextending his authority linked to tariff imposition. In 2025, day-to-day items such as food, electronics, furniture, clothing, and cars turned expensive, with costs surging above $1,000.

This year the hike in costs could surge in the range of $1,300 and $1,700 per household, as per Tax Foundation data.

What Does US Tariff Removal Means For American Households?

As a result of the US apex court striking down the IEEPA tariffs, the financial stress is expected to plummet with savings rising towards $800 mark.

Will Businesses Enterprises Receive Refunds? 

While clarity on whether individual consumers or business entities receive refunds remains blurred, economists are of the view that impacted businesses could receive compensation. The overall expectations are household friendly with experts viewing likely relief in US citizen wallets after the US SC's power check move on Trump.