Auto Tariffs Remain in Place as Supreme Court Rules Against Trump
The U.S. Supreme Court has decided President Donald Trump exceeded his authority by using the International Emergency Economic Powers Act to levy tariffs on imported goods.
The ruling does not apply to a 25% tariff on imported vehicles and auto parts that Trump enacted under Section 232 of the Trade Expansion Act. However, an October analysis by PwC found the government had to that point collected more than $8 billion from the auto industry in tariffs that were invalidated by the Supreme Court’s decision.
Government sources say more than $133 billion has been collected from all tariffs enacted under the IEEPA. The companies that paid them are likely to join those that have already brought lawsuits seeking refunds in hopes that the tariffs would be reversed.
Past presidents have used emergency powers to enact sanctions and embargoes. The power to levy tariffs, duties and other forms of taxation has traditionally belonged to the U.S. Congress.
“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope,” Chief Justice John Roberts wrote in the 6-3 majority’s decision, but “points to no statute” linking the IEEPA to tariffs, so “we hold that IEEPA does not authorize the president to impose tariffs.”
