Consumer technology and automotive sectors have been cited as having "pulled back" the most on digital ads, but today's U.S. Supreme Court ruling could remove the immediate cost pressures that prompted companies to make those cuts.

The ruling found some of President Donald Trump’s tariffs illegal, but stopped short of saying whether or how the federal government must refund businesses for duties they have paid. The law is intended for use in national emergencies. The shift could have major implications for the global economy. 

The justices ruled 6-3, and conservative Chief Justice John Roberts wrote the majority opinion for the ruling.

The ruling upheld a lower court's decision that Trump's use of this 1977 law exceeded his authority. The law, the International Emergency Economic Powers Act (IEEPA), did not grant Trump the power he claimed to impose tariffs.

Roberts cited a prior Supreme Court ruling, writing that "the president must 'point to clear congressional authorization' to justify his extraordinary assertion of the power to impose tariffs," according to Reuters. 

The ruling removes one primary roadblock to infuse investments in digital advertising.

Time reports that companies that had to pay tariffs might have an opportunity to seek a refund from the Treasury Department, but Justice Brett Kavanaugh, writing in dissent, noted that “refunds of billions of dollars would have significant consequences” for the U.S. economy, and warned that the “process is likely to be a ‘mess.'"

The Court also said nothing about whether -- and if so, how -- the government would return the billions of dollars that it collected from importers, he told Time.

U.S. tariffs implemented in 2025 by the Trump administration have disrupted every industry, but none as much as retail and automotive.

"While the decision provides some near-term relief, it does not eliminate the broader trade policy uncertainty facing retailers and brands," said Emarketer Analyst Zak Stambor. "We expect the ruling to create a modest tailwind for retail sales beginning this year, though that benefit will gradually fade by 2028."

Emarketer revised its forecast on Friday for retail, estimating sales will grow 3.5% to $7.78 trillion this year, roughly $13 billion higher than its previous outlook.

A report published in September 2025 from Emarketer expected retail and automotive to take the biggest hit and cut the most ad spending.

Emarketer across all sectors expected U.S. digital ad spend to reach $338.27 billion this year, representing a 9.5% year-over-year growth. An earlier forecast predicted 11.5% growth in 2025.

The Interactive Advertising Bureau had already forecast that U.S. marketers overall would spend 9.5% more in 2026 compared with 2025 on digital advertising.

The growth, forecast through polling domestic buy-side ad buyers at agencies and brands, is partly due to “major cyclical events” including the midterm elections, Winter Olympics, and the FIFA World Cup. Excluding those events, the IAB said, growth still wavers between 7.1% and 7.8%.

The News/Media Alliance, applauding Friday’s U.S. Supreme Court Ruling, shared its views on how tariffs hurt publishing.

“We support strong trade enforcement to protect U.S. industries and U.S. jobs," Danielle Coffey, president and CEO of the News/Media Alliance, wrote in prepared remarks. She called tariffs "counterproductive and unnecessary."

Further implementation of tariffs would result in the loss of thousands of jobs in the already-stressed U.S. publishing, printing, and paper industries, leading to less quality journalism available to the American people, Coffey wrote.

The U.S. Constitution grants Congress -- not the president -- the authority to issue taxes and tariffs, although Trump turned to a statutory authority by invoking IEEPA to impose the tariffs on nearly every U.S. trading partner without the approval of Congress, according to Reuters.

Trump did impose additional tariffs under other laws that are not at issue in this case, Reuters explained. Based on government data from October to mid-December, those represent about one-third of the revenue from tariffs.