After Supreme Court ruling, industries still face higher rates
Supreme Court during a rainstorm in Washington, February 20, 2026.
Annabelle Gordon | Bloomberg | Getty Images
The Supreme Court on Friday ruled that President Donald Trump’s country-specific “reciprocal” tariffs are unconstitutional and have benefited many consumer companies facing higher import costs.
However, the decision does not cover all sectors.
The Supreme Court reviewed tariffs enacted under the 1977 International Emergency Economic Powers Act, or IEEPA, which the Trump administration used to justify its sweeping tariff agenda. The law had never before been used by a president to impose tariffs.
The Supreme Court ruled 6-3. reigned He said IEEPA “does not give the President the authority to impose tariffs.”
Still, the Supreme Court’s decision does not apply to tariffs enacted under Section 232 of the Trade Expansion Act of 1962. These taxes target specific products that threaten national security and remain in effect after Friday’s decision.
In addition to country-specific rates, Trump also increased tariffs on imports of steel, semiconductors, aluminum and other products deemed harmful to national security.
Here are the sectors that still face high taxes even after the Supreme Court decision.
automobiles
It is not yet clear how much the decision will affect the US and the global automotive industry. The industry continues Depending on where an imported auto part or vehicle comes from, you face tariff costs in the billions of dollars.
The Trump administration last year imposed across-the-board 25% tariffs on vehicles and certain auto parts imported into the United States, citing national security risks. It has since made independent agreements with countries such as the United Kingdom and Japan to reduce taxes to 10% to 15%. Others, such as South Korea, have also struck deals for lower rates, but it is unclear whether these changes are actually effective.
America’s largest automaker, General EnginesLast month, he announced that customs duty costs were expected to be between 3 billion and 4 billion dollars this year, and Ford Motor Earlier this month, it said the net tariff impact is expected to remain roughly flat on an annual basis at $2 billion in 2026.
Neither Ford nor GM immediately responded to a request for comment on the Supreme Court decision and whether it changes those estimates.
medicines
The pharmaceutical industry faces many uncertainties regarding tariffs. Trump has repeatedly threatened tariffs on pharmaceutical imports; but these have not yet taken effect, in part due to multi-year agreements negotiated between the administration and drug manufacturers.
However, if this changes, drug tariffs would still fall under Section 232.
The administration started to impose customs duties on the sector eventually reaching 250%. Last July, Trump threatened a 200 percent tariff on drugs, and the administration has already launched a Section 232 investigation into drugs to investigate the impact of imports on national security.
Tariff threats are a move that pushes pharmaceutical companies to produce in the United States rather than abroad.
In December, several companies signed a deal with Trump to voluntarily lower their prices in exchange for a three-year exemption from any drug taxes as long as they invest more in U.S. manufacturing. This deal involved major players such as Merck, Bristol Myers Squibb, Novartis and more.
Furniture
furniture industry There was little relief from Friday’s Supreme Court decision.
Last fall, higher tariffs were imposed under Section 232 on items like couches, kitchen cabinets, makeup and more. Since IEEPA tariffs were deemed unconstitutional, taxes of approximately 25% will remain in effect.
The furniture industry is already facing greater uncertainty; The 25% tariff is expected to rise to 50% in 2027, with broader pressures from higher interest rates and inflation.
While smaller companies with fewer resources are hit the hardest, larger companies are facing bankruptcy, such as Value City Furniture’s parent company, American Signature Furniture, which went bankrupt late last year.
Food and consumer packaged goods
Under Section 232, tariffs still apply to steel and aluminum imports into the United States.
Companies with higher aluminum tariffs Coca Cola, PepsiCo, Keurig Dr Pepper And Reynolds will continue to face higher costs associated with manufacturing its products.
Trump increased aluminum tariffs to 50% last year.
Still, some key tariffs on the sector were rolled back even before Friday’s decision.
In November, Trump issued an executive order exempting hundreds of agricultural products from tariffs, including bananas, coffee and spices. In September, it similarly canceled a 10% tariff on Brazilian pulp, a key component of paper towels, diapers and toilet paper.
— CNBC’s Mike Wayland, Annika Kim Constantino, Gabrielle Fonrouge and Amelia Lucas contributed to this report.
