A recent U.S. Supreme Court decision rejected President Donald Trump’s global tariffs, a move that could signal relief for shoppers.
Appliance prices, however, are unlikely to fall right away. For households replacing a broken refrigerator, washer, dryer or range, that means paying today’s prices.
A National Retail Federation study found shoppers could pay between $6.4 billion and $10.9 billion more for household appliances due to tariff-related costs.
Economists and business leaders say several forces continue to influence what shoppers pay at checkout. Here are five reasons you may still pay more for appliances.
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Higher-Cost Inventory
The Supreme Court’s decision does not automatically reset appliance prices. Many products on showroom floors were ordered months ago under higher cost structures and retailers price them based on replacement costs, not what they originally paid.
“The inventories reflect costs, including the tariffs, so retailers risk losing money if they fail to cover the actual costs of the goods,” said Wayne Winegarden, an economist at Pacific Research Institute. “This was also why prices did not respond right away when the tariffs were imposed.”
Pricing Uncertainty
Companies often base prices on broader market expectations, not a single court ruling.
“Markets always require a certain amount of lead time before reacting,” said Javier Palomarez, president and CEO of the United States Hispanic Business Council. “This allows for businesses to react, strategize, make investments and then finally act. However, in this particular case, uncertainty around the tariffs’ future remains the predominant hurdle.”
For shoppers, that delay can mean appliance prices stay elevated while companies wait for clearer signals about trade policy.
Companies Rarely Cut Prices
Even when a cost pressure is removed, companies do not typically cut prices outright. Instead, increases may slow or prices may level off.
“Typically, there is less pressure for prices to increase,” Winegarden said. “Therefore, consumers do not see actual price declines just slower price increases or flat prices.”
Thin Retail Margins
Most appliance sellers are small businesses that do not have the leverage to absorb higher inventory costs.
When expenses rise, those increases are often passed through to shoppers.
“If you are already making razor thin margins, an increase as small as 5-10% per order of inventory can significantly disrupt an operation’s success,” Palomarez said.
For consumers, that makes rapid price cuts less likely, even after a major policy shift.
Ongoing Tariff Uncertainty
After the Supreme Court struck down the tariffs, the administration announced new global tariffs that could remain in place for months. Continued shifts in trade policy add another layer of uncertainty for businesses that are already managing higher costs.
“Markets are likely not to react in a positive light until it becomes absolutely clear that tariffs are out,” Palomarez said.
Until trade policy stabilizes, appliance prices are unlikely to fall.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Trump’s Tariffs Overturned: 5 Reasons You’ll Still Pay More for Appliances
