In a significant decision on the limits of presidential authority, the U.S. Supreme Court Feb. 20 invalidated the broad tariffs the Trump administration enacted through a series of 2025 executive orders.
In the 6–3 ruling, the Court determined that the tariffs exceeded the powers Congress granted the president under the 1977 International Emergency Economic Powers Act, which allowed the regulation of commerce during national emergencies caused by foreign threats.
Soon after the ruling, the administration issued a new executive order imposing a 10 percent tariff for 150 days, through July 24, 2026, this time citing authority under the Trade Act of 1974. The following day, the administration announced the tariff would instead be set at 15 percent. Any extension beyond the 150 days would require approval from Congress.
According to the White House Fact Sheet issued after the announcement of the new tariffs, passenger vehicles, certain light trucks, certain medium and heavy-duty vehicles, buses and their parts are exempt from the new duty.
The court decision also did not invalidate the tariffs on imported vehicles, steel and aluminum, which were applied under Section 232 of the Trade Expansion Act of 1962.
Tariffs up to 25 percent remain in place on imported aftermarket auto parts.
