Goldman: Don't expect consumer prices to fall after tariffs ruling

Don't expect prices at the store to fall just because the Supreme Court struck down President Donald Trump's tariffs. At best, companies may slow the pace of future price hikes on goods that get tariff relief, but they're unlikely to cut prices outright, economists at Goldman Sachs wrote: "We would not expect companies to lower prices in response to tariff reductions nearly as quickly as they increased them in response to tariff increases." Goldman estimates tariff passthrough has already lifted core Personal Consumption Expenditures, the Federal Reserve's preferred inflation gauge, by about 0.7% through January and expects only an additional 0.1% increase over the rest of 2026.

Friday's 6-3 ruling scrapped tariffs imposed under the International Emergency Economic Powers Act; the White House then announced a 10% Section 122 tariff and raised it to 15% the next day.

United States

tariffs, supreme court, goldman sachs, consumer prices, tariff passthrough, core pce, inflation, section 122, price hikes, white house