Supreme Court’s tariff ruling could be good news for device pricing

Since taking office, President Donald Trump has been aggressively imposing tariffs on other countries, just as he said he would during his campaign run in 2024. As expected, companies are choosing not to absorb the expenses and are instead passing the costs down to consumers. This comes in the form of increased prices for everyday products, like phones, tablets, computers, and so on. However, a new ruling may be a sign that some relief could be on the way.

According to NBC News, the Supreme Court has ruled on the sweeping tariffs Trump imposed under the International Emergency Economic Powers Act (IEEPA). In a 6-3 split decision, the Supreme Court found that Trump overstepped his authority when he used the IEEPA — a law meant for national emergencies — to implement tariffs. The ruling invalidates most of the tariffs Trump imposed, but not all of them.

For example, the tariffs placed on aluminum and steel were applied using different laws, so these tariffs are still intact. However, this does affect Trump’s country-by-country or “reciprocal” tariffs, like the 34% tariff on China and the 10% baseline tariff on other countries. It also neutralizes the 25% tariff placed on some goods from Canada, China, and Mexico for what Trump’s administration says is the failure to curb the flow of fentanyl.

“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope,” Chief Justice John Roberts wrote, who voted with the majority. However, Roberts states that the Trump administration “points to no statute” in which Congress has previously said that the language in IEEPA could apply to tariffs.

As a result of the decision, companies that were forced to pay the tariffs are able to seek a refund from the Treasury Department. The outlet states that hundreds of companies have already started suing to get their money back. “The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers,” Justice Brett Kavanaugh said in a dissenting opinion.

It’s possible that companies could start lowering the prices of their products now that these tariffs have been invalidated. However, even if that does happen, it may not last for long. Trump could choose to reimpose tariffs using different laws. In reaction to the ruling, Trump reportedly called it a “disgrace,” according to NBC’s source. Reportedly, Trump also said he had a backup plan.