President Donald Trump is trying to replace federal revenue lost after the Supreme Court struck down his biggest tariffs last month.
A study released on Friday by congressional Democrats says the administration’s import taxes could cost American households an average of $2,512 in 2026 — up 44% from $1,745 last year.
The increase comes as US consumers are already grappling with the high cost of living and rising energy prices linked to the war in Iran.
“Despite a Supreme Court ruling that much of Trump’s tariff agenda is illegal, the administration refuses to provide relief for families,” said Senator Maggie Hassan of New Hampshire, the top Democrat on the Joint Economic Committee.
“As American families struggle with high costs, the President keeps choosing to impose new tariffs that will push prices even higher.”
The White House rejected the report. Spokesman Kush Desai called it “phony”, saying: “President Trump will continue using tariffs to renegotiate broken trade deals, lower drug prices and secure trillions in investments for the American people.”
Supreme Court ruling forces refunds
Last year Trump invoked the International Emergency Economic Powers Act of 1977 to impose double-digit tariffs on almost every country in the world.
But the Supreme Court ruled on 20 February that the law did not give the president the authority to levy tariffs.
The government must now refund importers who paid the tariffs — a sum expected to total about $175bn.
The administration has since moved quickly to impose new levies. Treasury Secretary Scott Bessent has said the measures would leave tariff revenue in 2026 “virtually unchanged”.
New trade investigations
Trump has already introduced a 10% tariff under Section 122 of the Trade Act of 1974 and may raise it to 15%. However, such tariffs can only last 150 days unless Congress approves an extension, and they are also being challenged in court.
Another option is Section 301 of the same law, which allows tariffs against countries engaged in “unjustifiable” or “discriminatory” trade practices.
Trump used the measure during his first term to impose tariffs on Chinese imports.
On Wednesday, US Trade Representative Jamieson Greer launched an investigation into whether 16 trading partners — including China and the European Union — are overproducing goods and harming US manufacturers.
“The United States will no longer sacrifice its industrial base to other countries exporting their problems with excess capacity and production,” Greer said.
Trade lawyer Ryan Majerus, a former US trade official, said the move was expected but broader than many had anticipated.
“We all knew that’s what they were going to pivot to,” he said. “The challenge is that this is far more sprawling than anyone expected.”
Tariffs and rising prices
Democrats say households ultimately bear the full cost of tariffs.
They cite analysis from the Congressional Budget Office showing importers pass most tariff costs on to consumers, while domestic producers can also raise prices because of reduced foreign competition.
The renewed tariff push comes as the war in Iran drives up petrol and commodity prices ahead of November’s midterm elections, adding to pressure on voters already frustrated by high living costs.