Empty joy? The U.S. Supreme Court rejected the emergency tariffs, but retailers say: don't expect price cuts

The U.S. Supreme Court's rejection of the White House's emergency tariff ruling, while a legal victory for businesses, is unlikely to lead to the price reductions consumers hope for due to complex refund procedures and the subsequent introduction of new tariff policies. According to Reuters, businesses generally plan to use potential tariff refunds to offset previously high operating costs rather than reduce the prices of end products. At the same time, U.S. President Trump has announced the implementation of new temporary tariffs, further undermining market expectations for relief from inflationary pressures. The direct impact of this situation on investors and the market is that the overall effective tariff rate in the U.S. will quickly rebound after a brief decline, and both businesses and consumers will continue to bear the vast majority of the tariff costs. The refusal of retailers to adjust pricing strategies has shattered hopes for a rebound in consumer spending. Moreover, the Supreme Court's ruling did not clarify how the government should refund the approximately $175 billion in tariffs already collected. Importers face a lengthy and bureaucratic refund process, further eliminating the possibility of passing benefits to consumers in the short term. Lengthy Refund Process, Businesses Unwilling to Share Benefits Last week's ruling by the U.S. Supreme Court was a significant victory for over 1,000 businesses, including wholesalers Costco and tire manufacturer Goodyear Tire & Rubber. These companies sued the government, accusing Trump of lacking legal authority under the 1977 International Emergency Economic Powers Act to impose tariffs. However, due to the absence of a refund mechanism, importers and lawyers are caught in a complex bureaucratic process. Interviewed business owners clearly stated they have no plans to lower prices. Eva St. Clair, co-founder of clothing company Princess Awesome, pointed out that the company has absorbed almost all of the tariff costs, so there is no reason for price reductions. The company previously paid $30,000 in tariffs and raised $8,000 through a customer tip jar to maintain operations. Spreetail, based in Nebraska and selling products like Razor scooters on Amazon, has its CEO Josh Ketter stating that the company "has no plans to lower prices." He added that even if they eventually receive a refund, it would only partially offset last year's losses. Spreetail paid about $50 million in tariffs in 2025, and Ketter expects the refund process could take years. Jason Cheung, CEO of toy manufacturer Huntar, also doubts prices will decrease, but he mentioned that they might increase discounts for customers to stimulate purchases. New Tariffs Take Over, Overall Tax Rate Remains High According to CCTV News, in response to the Supreme Court's ruling, Trump quickly imposed a 10% temporary tariff on U.S. imports from all countries and threatened to raise it to 15%. This move is based on a law from 1974 that requires Congress to agree to extend the tariff period after 150 days, a process that could invite additional legal challenges The implementation of new tariffs fills the gap left by the cancellation of old tariffs, keeping the tariff burden heavy. According to data from the Yale Budget Lab, before the emergency tariffs were overturned, the overall average effective tariff rate faced by American consumers reached 16%, the highest level since 1936. After the ruling, the rate briefly dropped to 9.1%, but with the 15% global tariff taking effect on Tuesday, the rate will rise again to 13.7%. Joshua Bailey, Chief Economist for North America and Global Economics at the Economist Intelligence Unit, stated that the overall effective tariff has not significantly decreased compared to last week, and coupled with businesses' reluctance to reverse previous price increases, this ruling is unlikely to provide much relief for households. In response to the new policy, St. Clair of Princess Awesome indicated that she would adjust her procurement arrangements to ensure that goods enter the U.S. only after 150 days. Cost Pass-Through Triggers Dual Pressure on Economy and Sentiment The drastic fluctuations in tariff policy have had a substantial impact on the U.S. consumer market. A study by the New York Federal Reserve Bank on February 12 concluded that American consumers and businesses bear about 90% of the tariff costs. These tariffs, implemented through a series of executive orders, have driven up prices and led to a decline in consumer confidence. High prices and ongoing tariff uncertainty have also directly affected public sentiment. According to a Reuters/Ipsos poll, anger over tariffs has worsened Americans' views on Trump's handling of economic issues. As of mid-February, his approval rating on this issue dropped to 34%, far below the levels during his first term