economy
February 20, 2026
With Trump's 'reciprocal' tariffs struck down, here are the industries still facing higher rates
President Donald Trump's "reciprocal" tariffs were deemed unconstitutional by the Supreme Court, but some sector-specific tariffs remain in place.
TL;DR
- The Supreme Court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs, striking down President Trump's country-specific "reciprocal" tariffs.
- Tariffs enacted under Section 232 of the Trade Expansion Act of 1962, related to national security, were not affected by the ruling and remain in place.
- Industries such as automotive, pharmaceuticals, furniture, and food and consumer packaged goods continue to face higher import costs due to Section 232 tariffs.
- The automotive industry faces billions in tariff costs, with companies like GM and Ford projecting significant expenses.
- The pharmaceutical industry faces uncertainty, with potential for high tariffs under Section 232, though some companies have secured temporary exemptions by agreeing to lower prices and invest in U.S. manufacturing.
- Furniture imports are subject to 25% Section 232 duties, expected to rise to 50% in 2027, impacting smaller companies disproportionately.
- Steel and aluminum tariffs under Section 232 continue to affect food and consumer packaged goods companies, increasing manufacturing costs for products like beverages and paper goods.
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