Supreme Court Blocks Trump's Tariffs, Auto Levies Still Stand

The Supreme Court declared this morning that it has invalidated the president's enforcement of extensive tariffs, stating that they constituted an excessive use of his office's power.
The 6-3 decisionrepeals the common tariffs on imported items established through an emergency powers law, although certain taxes on goods such as vehicles and vehicle components continue to apply.
During a press event on Friday afternoon, Trump stated he would bypass the Court's ruling and reinstate the tariffs through alternative methods. He also criticized the Supreme Court justices who opposed him, labeling them "unpatriotic and disloyal to our Constitution."

This narrative is being updated and modified to incorporate recent developments as they happen.

On Friday, February 20, the U.S. Supreme Court invalidated President Trump's broad tariffs, stating that they represented an excessive use of his power. The decision, made by a 6-3 majority, dismissed the Trump administration's claim that the 1970 International Emergency Economic Powers Act (IEEPA) grants the president the authority to impose such tariffs.

President Trump held a press briefing on Friday afternoon, stating that he intended to bypass the Supreme Court's ruling by issuing an executive order that would implement a 10 percent worldwide tariff. He also mentioned that he would initiate inquiries into "unfair trade practices" in other nations, which could result in additional tariffs being applied.

It is yet to be determined if any of these changes will have an impact on car prices, which have been increasing significantly following the introduction of tariffs last year. For example, according to a study reported on byAutomotive News, the sticker prices for vehicles manufactured in Canada increased by almost 10 percent over the last seven months, resulting in a $3991 rise in cost. The prices of cars produced in Japan and Germany also went up, but at a slightly slower pace, still leading to thousands of dollars more in expenses, with increases of $3298 and $2819 respectively.

However, these tariffs were not introduced as part of the IEEPA action, so they are not part of the Supreme Court's decision to cancel that particular group of tariffs. The Supreme Court's judgment also does not reverse duties on steel and aluminum, nor does it impact tariffs that were put in place through other methods outside the Emergency Powers Act. Rather, the majority of current auto industry tariffs are imposed under trade policies referred to as Sections 232 and 301, which apply tariffs due to "national security" concerns and "unfair trade practices."

Car and DriverContacted multiple car manufacturers for their response to the decision. General Motors, Nissan, and Toyota did not provide a statement, whereas Ford said: "We are examining the impact of the Supreme Court's ruling and evaluating its consequences. We will keep collaborating with the Administration and Congress on policies that support a robust and internationally competitive U.S. automotive industry."

Justice Brett Kavanaugh expressed in a dissenting opinion that the Supreme Court's reversal might lead to a "chaotic" effort by companies to seek refunds for tariffs they have already paid. It remains uncertain precisely how this would unfold, but businesses could be aiming to recover billions of dollars in tariff fees that are now considered invalid—many of which were ultimately passed on to consumers.

The introduction of tariffs by the Trump administration caused significant disruption within the automotive sector last year.Both domestic and foreign car manufacturers rushed to actTo handle the 25 percent import taxes on both vehicles and components. Manufacturers, such as Ford, GM, Honda, and Stellantis, sought exemptions for cars produced in Canada and Mexico, but had limited success.

It wasn't until August 2025 that the Trump administration revealed plans to reduce tariffs within the automotive industry—albeit by a small margin. This adjustment allowed manufacturers subject to the 25 percent auto tariff to avoid extra charges on aluminum and steel.

Given the latest updates, it remains uncertain when or if the tariff conditions for the automotive sector will change.

This is an ongoing situation. We will provide updates to the story as additional details emerge.

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