The Supreme Court Strikes Down Trump's Tariffs, Though Some Levies on the Auto Sector Remain
Car and Driver
February 20, 2026
AI-Generated Deep Dive Summary
The U.S. Supreme Court ruled 6-3 that President Trump exceeded his authority by imposing widespread tariffs under the 1970 International Emergency Economic Powers Act (IEEPA). The decision invalidated most of the tariffs on foreign goods, though some levies on cars and car parts remain in place. In response, Trump vowed to circumvent the Court's ruling by signing a new executive order re-imposing global tariffs and directing investigations into "unfair trade practices" that could lead to additional tariffs.
The automotive industry was hit hard by Trump's tariffs, with sticker prices for vehicles assembled in Canada spiking nearly 10% over seven months—adding an average of $3,991 per vehicle. Similarly, cars from Japan and Germany saw price increases of around $3,298 and $2,819, respectively. While these specific tariffs weren't tied to IEEPA, their continuation under other legal frameworks remains uncertain. The Court's ruling doesn't overturn tariffs on steel and aluminum, leaving the auto sector in a state of limbo.
The decision also raises questions about potential refunds for companies that paid invalidated tariffs. Brett Kavanaugh,
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Originally published on Car and Driver on 2/20/2026