It’s been a year since the fabled “Liberation Day” when President Donald Trump took the podium and shocked the world with monster tariffs.
More recently, the Supreme Court stepped in and struck down the tariffs the administration launched under emergency powers. You might think that means immediate relief is coming to the checkout aisle. I hate to be the bearer of bad news, but that’s a financial myth. Your wallet is still taking a beating.
Politicians love to claim that foreign countries pay these import taxes. The president himself has repeatedly made this claim, stating on social media and at rallies that China and other countries would be paying the tariffs, not Americans.
As we pointed out a while back in “Trump Said China Would Pay Tariffs; Now He Says Walmart Should,” that’s simply not true.
When the government slaps a tariff on imported goods, the exporter doesn’t eat the cost; importers here in America do. It’s American importers who pay the U.S. government. Then they pass at least part of that bill down the supply chain until it lands squarely in your lap.
Here’s what the Tax Foundation recently said:
“Altogether, Trump tariffs were the largest US tax increase as a percent of GDP in more than 30 years and amounted to an average tax increase per US household of $1,000 in 2025 and $1,300 in 2026, primarily driven by the now-illegal IEEPA tariffs.”
Numbers don’t lie. If you want a deep dive into how this functions, our reporting in “Here’s How Much Tariffs Cost Americans Last Year — and What to Expect in 2026” breaks down the math.
And if you think the Supreme Court’s decision means that money is coming back, think again. Here’s why you’re still paying for global trade wars.
1. The new stopgap tariff
Washington moves quickly when it wants to. As soon as the Supreme Court struck down the old tariffs, the administration pivoted to a different legal avenue known as Section 122 of the Trade Act of 1974.
It immediately slapped a new 10% global tariff on imports. The name of the tax changed, but the reality didn’t. You’re still paying a premium just for the privilege of buying everyday goods.
2. Prices are already baked in
Over the past year, companies big and small rolled out price increases to cover the cost of the original tariffs. Now that those specific emergency tariffs were ruled illegal, do you really think corporations are rushing to lower their retail prices?
They aren’t. They’re enjoying the wider profit margins while you keep paying the inflated sticker price.
3. The refund illusion
You might hear talk about the government refunding billions of dollars in illegally collected tariffs. Don’t expect a check in the mail.
The refund process is a messy legal battle among major corporations, importers, and U.S. Customs and Border Protection (CBP). Companies are fighting to get their money back, but there is no mechanism forcing them to pass those refunds down to you.
You paid the higher price at the register, but in most cases, the corporation will keep the refund.
4. Other tariffs survived the chopping block
The Supreme Court ruling only applied to tariffs imposed under one specific emergency law. The administration’s other aggressive trade barriers are still very much alive.
Whether you’re buying electronics, vehicles, or appliances, the components inside them are still taxed. Manufacturers are still passing those exact component costs right back to you.
5. Retaliatory tariffs are still hurting the job market
Trade wars aren’t fought in a vacuum. When the U.S. taxes foreign goods, those countries punch back by taxing goods they buy from America. This continues to hurt domestic farmers and manufacturers who rely on selling their products overseas.
Back in 2018, CBS News said businesses and industries were warning that these policies would crimp sales and hurt profits. The uncertainty surrounding these shifting policies forces businesses to freeze hiring or hold back on investments.
So you aren’t just paying more at the store; you’re operating in a fragile job market.
How to protect yourself right now
You can’t control what happens in the courts, but you can control how you spend. Shop by unit price, compare generic alternatives, and learn more in “How to Buy in Bulk and Save Money Right Now.”
If you know you need an appliance, start hunting for discounts. You have to be ruthless with your budget because right now, no one else is looking out for your wallet.
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