Q&A of the Day – Impact of the SCOTUS Tariff Ruling

According to Yale’s Budget Lab: Before the IEEPA tariffs were struck down, the overall average effective tariff rate for imports was 19.6%. Immediately following the SCOTUS ruling, the rate fell to 9.1%. After the 10% across-the-board tariffs were imposed Friday night, the rate rose to the level of 13.0% for at least the next 150 days. Complicating matters, on Saturday President Trump announced the tariff rate would 15%. Adjusting for that adjustment, the net effective rate should be 14.95%. Therefore, the net effective impact in real-time is that approximately 24% of imposed tariffs were eliminated by Friday’s Supreme Court ruling.