Why you WON’T get a refund after Trump’s tariffs were struck down… but TVs and clothes will be cheaper

It’s unlikely that Americans will get any money back on purchases made under President Donald Trump’s tariffs, despite the Supreme Court’s decision on Friday.

While there’s a strong possibility companies like Target and Wayfair could get money back – ordinary consumers almost certainly would not automatically receive refunds for goods they already bought. 

This is because consumers don’t literally pay tariffs to the government. Importers or shipping companies pay tariffs at the border and then often pass those costs along to retailers and customers through higher prices. 

Households will, however, see significant savings. 

Most economists expected that tariffs would raise prices on imported consumer goods, with those costs often passed on to shoppers. 

Blocking the tariffs can ease – or dampen the future growth of – price increases on everyday items like electronics, appliances, clothing and other imported products.

By curbing tariff-driven price pressures, the decision could help moderate inflation on traded goods – easing financial strain on middle and lower-income families who spend a larger share of income on goods. 

Items that will become more affordable once tariffs are eased include clothing, electronic, furniture, and toys. Food and beverage items such as beer, produce, coffee could also see smaller prices.  

The US Supreme Court ruled 6–3 on Friday that Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful because he lacked authority to impose them without clear Congressional approval. 

That decision strikes down a major part of his tariff regime and could force the government to refund large amounts of duty revenue collected since 2025.

The US stock market reacted mildly after the Supreme Court’s decision on Friday morning. The Dow Jones was up 0.21 percent, Nasdaq was up 0.76 percent, and the S&P 500  jumped 0.46 percent. 

The strike down of these tariffs will likely bring the average tariff rate from 16.8 percent to around 9.5 percent, EY-Parthenon chief economist Gregory Daco told AFP ahead of the ruling. But this could prove to be temporary as the government seeks other ways to reimpose sweeping duties, he added.

Also at stake are tariff revenues for the government, Daco said, estimating a loss in government revenues of around $100 billion to $120 billion.

The justices did not address the degree to which importers can receive refunds. But Kavanaugh warned that this process – as acknowledged during oral arguments – could be a ‘mess.’

Striking down the emergency tariffs ‘would constrain the president’s ambitions to impose across-the-board tariffs on a whim,’ said Erica York of tax policy nonprofit the Tax Foundation.

But it still leaves him other statutes to tap for tariffs, even if they tend to be more limited in scope – or require specific processes such as investigations – York told AFP.