After Supreme Court ruling, industries still face higher rates

The Supreme Court on Friday ruled that President Donald Trump’s country-specific “reciprocal” tariffs are unconstitutional, delivering a win for many consumer companies facing higher import costs.

But the ruling doesn’t cover all sectors.

The Supreme Court reviewed tariffs enacted under the International Emergency Economic Powers Act of 1977, or IEEPA, which the Trump administration used to justify the sweeping tariff agenda. The act had never before been used by a president to impose tariffs.

In a 6-3 decision, the Supreme Court ruled that IEEPA “does not authorize the President to impose tariffs.”

Still, hours after the ruling, Trump announced a new global 10% tariff, and the Supreme Court’s ruling does not cover tariffs enacted under Section 232 of the Trade Expansion Act of 1962. Those duties are intended to target specific products that threaten national security, and they remain in effect after Friday’s ruling.

Separate from his country-specific rates, Trump has raised tariffs on imports of steel, semiconductors, aluminum and other products deemed to impair national security.

Here are the sectors still facing higher levies even after the Supreme Court decision.

It’s not immediately clear how much the decision will impact the U.S. and global automotive industry. The industry continues to face billions of dollars in tariff costs, depending on where an imported auto part or vehicle originates.

The Trump administration last year broadly implemented 25% tariffs on vehicles and certain auto parts imported into the U.S., citing national security risks. It has since struck independent deals to lower the levies to 10% to 15% with countries such as the United Kingdom and Japan. Others, such as South Korea, have also struck deals for lower rates, but it’s unclear if those changes have actually taken effect.

“With today’s decision out and subsequent developments, there remain many unknowns and important questions still to be answered. This is not a moment to ease up,” said Lenny LaRocca, U.S. automotive lead for consulting firm KPMG. “Automakers should continue planning for multiple scenarios and keep supply chain considerations top of mind as the trade and tariff landscape continues to evolve.”

America’s largest automaker, General Motors, last month said it expects between $3 billion and $4 billion in tariff costs this year, and Ford Motor earlier this month said its net tariff impact is expected to be roughly flat year over year at $2 billion in 2026.

Ford told CNBC in a statement that it is continuing to work with the government on policies that “promote a strong and globally competitive U.S. auto sector.” GM did not immediately respond to a request for comment on the Supreme Court decision.