With Supreme Court rulings striking down Trump's tariffs, the U.S. government could face $130–175+ billion in potential refunds.
What that means:
-Inflation pressure eases
-Consumers regain some purchasing power
-Importers get major cash back → stronger margins
-GDP outlook could improve
-Stocks tend to rally
-Trade flows normalize
Downside:
-Government loses $130–175B+ in revenue
-Refunds mostly go to companies, not guaranteed lower shelf prices
In short:
Tariff refunds = short-term bullish for markets.
It’s essentially a large-scale tax cut for importers.