Mar 20, 2026
Americans feeling the pressure of rising prices and economic uncertainty shouldn’t hold out hope that recent headlines about tariffs will result in lower prices, some businesses say.
Despite the Supreme Court striking down President Donald Trump’s emergency tariffs on Feb. 20, the White House quickly responded by enacting a broad-based 10% tariff, by other means, on global goods for at least 150 days.
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And even though the ruling was a win for businesses subject to the illegal tariffs — reportedly worth an estimated $175 billion — the court didn’t say how the government should pay back the funds. That uncertainty, along with news of new tariffs, prompted some small businesses to warn consumers lower prices won’t be coming soon.
“We absorbed almost all of the cost of the tariffs; we don’t think there’s a reason to, like, pay anybody back,” Eva St. Clair, co-owner of clothing company Princess Awesome, told Reuters in an article published Feb. 24 (1).
A study released by the Federal Reserve Bank of New York on Feb. 12 found that about 90% of the economic burden of tariffs in 2025 were shouldered by American consumers and businesses (2).
“If we ever get refunds, it will only partially make up for the losses this past year,” Josh Ketter, CEO of fulfillment and logistics firm Spreetail, told Reuters. He added his company had “no planned price changes.”
Sticky prices
A big problem for many small businesses is timing — there’s no telling how long it might take for refunds to be doled out.
Ketter’s company paid around $50 million in tariffs last year, according to Reuters, but he expects the refund process to take years. Some small businesses might not survive that long, and may be less flexible when it comes to pricing.
One business leader doubted prices would drop, but suggested sales might be a short-term option.
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“We may run higher discounts to our customers though to get buying going again,” Jason Cheung, head of toy maker Huntar, told Reuters.
Another reason consumers may be unlikely to see lower prices after the tariff ruling, experts told NPR, is due to “sticky prices” — the idea that prices change more slowly than the underlying factors that go into pricing goods (3). Companies may also keep prices higher if it seems that consumers will continue to pay those higher prices.
According to the Yale Budget Lab, before the emergency tariffs were struck down, consumers faced an overall average effective tariff rate of 14.3% (4). After the Supreme Court ruling, the rate briefly fell to 7.3%. But following the latest tariffs, effective Feb. 24, the rate increased to 10.5%, at least for 150 days.
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How consumers can cope
With ongoing uncertainty around tariffs, there are ways you can plan to save on what you need to buy this year.
When it comes to food costs, there are several ways to keep your spending in check. An easy place to start is aiming to eat out less, while making meal planning a priority. Meal planning is an effective way to save money because you can tailor a grocery list based solely on the meals you plan to eat, eliminating both waste and impulse buying.
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Buying store brands, taking advantage of discount days and coupon apps, and buying expensive items in bulk when they’re on sale can also help you trim your food bill.
If you’re in the market for electronics, Consumer Reports recommends shopping for older models that are still on the market but may be priced considerably lower than the newest machines, or consider buying a refurbished model (5). Brands such as Apple, Samsung, LG and even BestBuy certify refurbished products they resell, and may offer new warranties.
You can also research when new models of the product you’re looking to buy will be released and time your purchase accordingly. Deals can also be had during popular sales times, such as Black Friday and Cyber Monday.
If you want to save cash on clothing items, you can keep an eye out for sales, or wait until the end of the season when stores are trying to clear inventory. For example, if your winter clothes and outerwear are likely to need replacing next year, see what deals are available before spring hits.
Thrifting and consignment shopping are also good options, and you can save a lot on wardrobe items. Consider peer-to-peer selling options such as apps like Depop, or online thrift stores. For a truly affordable and fun way to refresh your wardrobe, consider organizing a clothing swap with friends and family, which can result in free clothing and the opportunity to socialize while clearing out your closet.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Reuters (1); Federal Reserve Bank of New York (2); NPR (3); Yale Budget Lab (4); Consumer Reports (5)
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
