Courts keep striking down tariffs. Why aren't prices dropping too?

A federal court ruled on May 7 that a 10% tariff imposed by President Donald Trump under Section 122 of the Trade Act of 1974 was unlawful, though the administration plans to appeal. Consumer prices remain unlikely to drop due to ongoing geopolitical tensions and alternative tariff strategies, including Section 301 investigations, which could maintain or even increase tariff levels by year-end." "article": " A U.S. federal court on May 7 struck down President Donald Trump’s 10% tariff imposed in February under Section 122 of the Trade Act of 1974, ruling it unlawful. The Court of International Trade’s 2-1 decision prohibits the administration from collecting these tariffs from Washington state and two suing companies, though the levies will stay in place for most importers during the appeals process. U.S. Trade Representative Jamieson Greer confirmed the administration will appeal, arguing Trump’s trade protection policies remain unchanged despite legal setbacks. The ruling follows the Supreme Court’s February decision declaring Trump’s earlier tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), illegal. While some importers are now eligible for court-ordered refunds, economists like Boston College’s Brian Bethune doubt the appeal will succeed, calling it a low-probability legal gambit. Bethune noted that past IEEPA tariffs were also struck down, suggesting the administration’s current approach lacks legal foundation. The administration retains other options to enforce tariffs, including Section 301 of the 1974 Trade Act, which allows tariffs in response to foreign trade barriers. Greer has already launched Section 301 investigations into several countries and the European Union. Analysts at Kearney Foresight warn these investigations could result in tariff rates matching or exceeding 2025 levels by year-end, offsetting any price reductions from the recent court ruling. Consumer prices are unlikely to fall soon due to ongoing conflicts, such as the Iran war, which disrupt global supply chains. Even if the Section 122 tariffs are fully overturned, alternative measures could keep trade costs high. The appeals process and investigations may take months, leaving uncertainty over whether tariff burdens will ease, stay the same, or worsen for American importers and consumers.