Supreme Court to Weigh in on Trump’s Tariffs

Welcome to MoneyNerd — your weekly shortcut to how the latest news and trends shape your financial life. We’re here to keep you informed, confident and ready for whatever the economy throws your way.

The fate of many of President Donald Trump’s tariffs remains uncertain, but clarity may arrive soon. The Supreme Court is expected to hand down a ruling as early as this month in a case challenging the legal justification the Trump administration used to impose tariffs. 

The ruling was widely anticipated on Friday, but didn’t arrive.

In 2025, Trump unilaterally imposed sweeping “reciprocal” tariffs on imports from countries worldwide, citing the 1977 International Emergency Economic Powers Act (IEEPA), which allows the president to regulate certain economic activity during national emergencies. Trump says the tariffs are meant to counter what he describes as unfair trade practices and to pressure trading partners into negotiating more favorable terms for the U.S.

Several private companies and 12 states sued, arguing that IEEPA did not give the president authority to enact broad tariff policy without congressional approval. Federal district courts agreed.

The Trump administration appealed, and on Nov. 5, the Supreme Court heard oral arguments in Learning Resources, Inc. v. Trump, a case consolidating the key questions in the lower-court cases. During arguments, several justices appeared skeptical of the administration’s interpretation of IEEPA. 

If the Supreme Court upholds the lower court’s ruling to strike down the tariffs, then most of Trump’s second-term tariffs would be null and void, resulting in lower costs for importers. Over time, shipping could become faster and retailers would likely have more item availability, which could lower prices for goods like electronics, apparel, auto parts and furniture. 

But don’t expect price relief immediately — it’ll take time for companies to work through inventory purchased while the tariffs were in effect and complete new contracts with production and shipping partners. And in some cases, companies could keep savings as profit, which would mean prices stay elevated. 

If the Supreme Court strikes down the lower court’s ruling, then tariffs would remain in place. Tariffs have resulted in higher prices on everyday items since companies tend to pass added costs of importing on to consumers. Before the reciprocal tariffs kicked in, many businesses stockpiled goods to hold prices steady. However, those reserves may be running low, which could lead to higher retail prices. 

The ruling would also signal that the IEEPA allows the president broad authority over trade during a declared emergency, which means Trump or future presidents may further reshape U.S. trade policy without Congress. 

- Anna Helhoski

The labor market continued its cooling trend in December, according to the latest jobs report from the Bureau of Labor Statistics, released Friday. Job openings came in at 50,000 in December, below expectations of 55,000, according to Morningstar, an investing firm. 

The unemployment rate changed little in December, registering at 4.4%, compared to 4.5% in November. 

Elizabeth Renter, senior economist at NerdWallet, says the labor market is cooler than in recent years, but the data shows it’s also not in “imminent danger” — at least not yet. “Over the course of the past year, discomfort has no doubt grown for workers. Wage growth has moderated and firms aren’t hiring much,” Renter says.   

New entrants to the labor force are the most affected by a labor market that’s been cooled by slower hiring rather than higher layoffs. The data shows employment among prime age workers, ages 25-54, is more stable than for their younger counterparts. 

“In other words, if you were employed when this stretch of labor market cooling began, you were better positioned than those who were just finishing their education — even if it feels like you’re stuck now,” Renter says.  

The Fed will release its next rate decision after its Jan. 28-29 meeting. Based on recent data, Renter says that a pause is likely. “And if the current trajectory of the economy remains in play, no dramatic cuts on the horizon,” she adds. “Dramatic cuts to the target interest rate are typically only warranted when the labor market is taking a nose dive. And as of right now, that doesn’t seem to be in the cards.” 

- A.H.

If “save more for retirement” is one of your resolutions this year, we’ve got you covered. We recommend saving at least 15% of your pre-tax income for retirement each year. Whether you’re on track or not quite, one (or all) of these tips could help you make progress.

Use our retirement calculator to see if you’re on track.

- Taryn Phaneuf

NerdWallet’s annual Best-of Awards were released this week — announcing more than 50 winners across six major categories of financial products and services, from insurance to checking accounts to travel rewards. 

I’m not here to tell you who won, though. You can check that out for yourself. I’m here to give a behind-the-scenes peek at how we got here.

It begins with our team of more than 80 writers and editors, category experts focused year-round on maintaining our deep library of product reviews, ratings and recommendations. Our editorial team operates independently from our business teams, and NerdWallet partners (you can see a list here) and non-partners alike are given star ratings using a single set of methodologies (you can find those here). 

That never-ending work is the bedrock that the annual awards are based on. 

For the 2026 awards, teams began meeting last summer to winnow down a list of more than 900 eligible products across all categories. 

I talked to Caitlin Mims, an editor who managed the process for the Credit Cards team. She walked me through the process of choosing a winner in the “Best Credit Card for Dining” category. 

“There are so many cards that offer 3% back on dining,” she says. “A couple offer 4% back on dining, but they either have high annual fees or come with some restrictions.”

The winner (spoiler ahead) came out ahead in large part because of its versatility. “One of the reasons that we really like the Capital One Savor for dining is because it also offers rewards on groceries and on entertainment,” Mims says. “So, whether you prefer eating in or going out and having a night out, you can just use one card for that.” 

Rosalie Murphy, a lead writer, led the process for choosing winners for categories focused on small business owners — an audience that can range from “a one-person consultant or a hairstylist, on the small end, to somebody with 25 employees,” Murphy says. 

Whereas consumers may want all the bells and whistles on a credit card, businesses often want to keep it simple. “Most of what we hear from business owners is, ‘I want something that I don't have to think about, because I have so many other balls to keep in the air at any given time,’” Murphy says. 

When it came to selecting a winner for the “Best Small Business Credit Card” category, the team selected the Chase Ink Business Unlimited, which Murphy describes as a “a very straightforward cashback card with no annual fee, but it's a real workhorse.”

 -  Rick VanderKnyff

Your MoneyNerd team: Courtney Neidel, Anna Helhoski, Rick VanderKnyff.

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