What to Know
The Supreme Court ruled on Feb. 20 that many of the tariffs imposed by President Donald Trump in 2025 are unconstitutional and invalid.
The court opinion states that Trump overstepped his jurisdiction, since the power to tax lies in the power of Congress, not the president. Trump justified a number of tariffs by using the International Emergency Economic Powers Act (IEEPA), a 49-year-old law that allows a president to regulate economic transactions in a state of national emergency.
Trump declared a national emergency due to drug influx creating a "public health crisis" in which the Supreme Court ruled that the President cannot use IEEPA during peacetime.
Not all tariffs are gone– only the ones imposed under IEEPA, which include a 15 percent tax on goods from EU countries or a 20 percent tax on imports from Vietnam. Tariffs on metals, auto parts and wood remain.
After the IEEPA Supreme Court ruling, Trump imposed another 15 percent flat rate tariff under the Section 122 Authority of the Trade Act of 1974, which only lasts 150 days.
When will people see prices drop?
Just because the Supreme Court struck down a fraction of tariffs, doesn't mean consumers will see prices go down. But also, prices will not rise significantly.
According to the Yale Budget Lab, before the IEEPA tariffs were struck down, consumers faced an average tariff rate of 16 percent. After the court ruling, the rate fell down to 9 percent.
Then, after Trump imposed the new 15 percent flat rate, the rate rose to the current average of nearly 14 percent.
Yale estimates a 0.6 percent increase in consumer prices with an average of $800 loss per household, with the current state of tariff rates (IEEPA eliminated, Section 122 added).
Will consumers get refunds?
If there are any refunds, it's likely consumers will not see them. Rebates will go back to individual businesses and those companies can decide if they want to offer a refund to customers (which is unlikely).
Programs are in place for businesses to appeal the taxes they've paid at borders.
What does this mean for the future?
The Supreme Court ruling sets the tone for future tariffs made under IEEPA– which cannot happen unless the U.S. is in a national emergency.
However, based on the fact that Trump imposed the 15 percent flat rate tariff right after his IEEPA tariffs were overturned, means he is not afraid to implement more in the future.
Currently, the commodities hit the hardest by the tariffs are metals, electrical equipment, vehicles and computers, according the Yale Budget Lab. If the 15 percent flat rate tariff lasts longer than 150 days, apparel, leather products, and textiles may see price increases.
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Ella Gonzales; Fort Worth Star-Telegram; (TNS) | ©2026 Fort Worth Star-Telegram. Visit star-telegram.com. Distributed by Tribune Content Agency, LLC.
