- The Supreme Court announced this morning that it has struck down the president’s sweeping tariffs, which he said exceeded the powers of his office.
- The 6-3 decision ends widespread tariffs on foreign goods, including those targeting cars and auto parts imported from other countries.
- This is a development story. We will update it as soon as we get more information.
The United States Supreme Court struck down President Trump’s sweeping tariffs, which he said exceeded his authority. The 6-3 vote rejected the Trump administration’s argument that the 1970 International Emergency Economic Powers Act (IEEPA) gives the office of the president the power to impose such widespread tariffs.
The decision opens the door to saving thousands of dollars on car prices, which began rising dramatically in response to the tariffs’ introduction. This is evident, for example, from a study reported by Automotive Newssticker prices for Canadian-assembled vehicles rose nearly 10 percent over the past seven months, equating to a $3,991 increase in costs. Prices for cars built in Japan and Germany rose at a slightly slower pace, but still meant thousands of dollars in higher prices, netting $3,298 and $2,819, respectively.
Justice Brett Kavanaugh wrote in a dissent that the court’s decision could result in a “messy” refund by companies. It’s not clear exactly what that would look like, though companies could try to claw back billions of dollars in now-voided tariffs, much of which has been passed on to consumers.
The introduction of the Trump administration’s tariffs last year sent shockwaves through the auto industry. Both domestic and foreign automakers rushed to enforce 25 percent import taxes on both vehicles and parts. Manufacturers such as Ford, GM, Honda and Stellantis fought for exemptions on cars assembled in Canada and Mexico with little success.
It wasn’t until August 2025 that the Trump administration announced it would ease tariffs on the auto sector – albeit only slightly. The change meant that manufacturers paying the 25 percent auto tariff were exempt from paying additional tariffs on aluminum and steel.
This is a development story. We will update the story as more information becomes available.
After a brief stint as a detailer for a local dealer group in college, he knew he needed a more permanent way to drive all the new cars he couldn’t afford, and decided to pursue a career in automotive writing. By chasing down his college professors at the University of Wisconsin-Milwaukee, he was able to travel across Wisconsin in search of stories about the automotive world before landing his dream job at Car and driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf.
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