economy
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.