Automakers and other industry stakeholders are keeping an eye on the potential spillover effects of last week’s Supreme Court ruling striking down many of President Donald Trump’s tariffs.
In a 6-3 decision Friday, the court ruled against the imposition of open-ended reciprocal tariffs Trump installed under the 1977 International Emergency Economic Powers Act. The imposition of such broad tariffs, the Supreme Court ruling emphasized, are a power held only by Congress.
In response, Trump promised to enact a new temporary 10% global tariff under a different authority, Section 122 of the Trade Act of 1974, effective Feb. 24. He later said he would raise the new levy to 15%.
A few critical exceptions make the new tariffs tangential for many automotive imports — but mostly because they are already taxed under different regulations.
The new tariffs will not apply to imports already subject to so-called Section 232 tariffs, which include passenger vehicles, auto parts and steel and aluminum. Products compliant with the United States-Mexico Canada Agreement are also exempt from the new tariffs, according to a White House fact sheet.
In other words, automakers are still expected to pay a levy of 50% on steel and aluminum imports, and a levy of up to 25% on many imported vehicles and auto parts.
Although new vehicles might not be directly affected by Trump’s new levy, there may be impacts for other types of components that weren’t covered under the previous tariffs, including some types of aftermarket or replacement parts.
WardsAuto emailed numerous automakers, trade associations and analysts on Friday and Monday to gauge their reaction to the news. Several did not reply or declined to comment, pointing to little change for the industry given the still-active Section 232 tariffs.
However, a few stakeholders took the opportunity to share how the Supreme Court ruling — and this moment in Trump’s tariff policy — could affect the industry and path forward. Here’s a look at excerpts from eight of those reactions below.
Motor & Equipment Manufacturers Association
“Vehicle suppliers are a foundational part of the U.S. mobility sector, supporting domestic manufacturing, innovation, and jobs in communities nationwide,” said MEMA in an emailed statement. “As the details and provisions of the Court’s decision are implemented, it will be important to provide clarity and predictability for manufacturers of all sizes.”
“MEMA looks forward to continued engagement with the appropriate authorities as the next steps are defined. MEMA will continue advocating for supplier priorities to ensure fairness, clarity, and timely relief. MEMA and its members are committed to advancing policies that strengthen U.S. manufacturing and support a globally competitive and resilient supplier industry.”
Specialty Equipment Market Association
“SEMA hopes this court decision enables the space to establish a transition period where American companies can reshore their operations, diversify their supply chains, and reestablish their domestic manufacturing capabilities,” said the group in an emailed statement. “We encourage President Trump to continue to remove regulatory barriers that hamper the ability of small manufacturers to thrive domestically."
European Automobile Manufacturers' Association
“Regarding the US Supreme Court ruling on the reciprocal tariffs introduced by Trump's administration, we note that the decision does not apply to tariffs imposed on passenger cars, car parts, trucks and truck parts,” said the ACEA in an emailed statement. “These measures therefore remain unchanged at this stage. Nevertheless, given the evolving and unpredictable nature of the situation and the potential for further developments, we will continue to closely monitor changes and assess any possible implications for the auto sector.”
Toyota Motor North America
“The Supreme Court’s ruling on IEEPA-related tariffs does not affect existing tariffs imposed under Section 232,” said TMNA in an emailed statement. “Toyota remains committed to supporting U.S. manufacturing, jobs, and long-term investment while working to improve affordability for customers. We are eager to see a renegotiated USMCA that strengthens North American competitiveness and delivers greater certainty for the industry.”
Ford Motor Co.
“We are studying the effects of the Supreme Court’s decision and assessing its implications,” said Ford in an emailed statement. “We will continue to work with the Administration and Congress on policies that promote a strong and globally competitive U.S. auto sector.”
MichAuto
“While we recognize that other avenues exist for the Administration to again impose these tariffs, we continue to stress that Michigan’s businesses are disproportionately negatively impacted by tariffs, especially in our automotive, manufacturing, and agriculture sectors,” said MichAuto Executive Director Glenn Stevens Jr.
“MichAuto and the Detroit Regional Chamber continue to support the use of tariffs as a means to ensure a level playing field in global economic exchange and will work with federal officials and the U.S. Trade Representative to achieve a balanced approach to international trade. It remains our focus and objective that the governments of the United States, Canada, and Mexico extend the USMCA this year. We are stronger together with our closest trade partners.”
Urban-Brookings Tax Policy Center
“A large share of the tariff burden on US automobile manufacturers comes from the Section 232 tariff on auto parts, rather than the IEEPA tariffs that the Court overturned,” said Tax Policy Center Research Analyst John Wong. “Automobile manufacturers are also burdened by Section 232 steel and aluminum tariffs, which are also not repealed. Section 122 is written so that tariffs under that authority do not apply to automobile parts, steel or aluminum because Section 232 applies.”
