After the Supreme Court ruling, industries continue to face higher rates

The Supreme Court ruled Friday that President Donald Trump’s “reciprocal” tariffs on each country are unconstitutional, delivering a win for many consumer companies facing higher import costs.

But the ruling does not include all sectors.

The Supreme Court reviewed tariffs passed under the International Emergency Economic Powers Act of 1977, or IEEPA, which the Trump administration used to justify its sweeping tariff agenda. No president has ever used this law to impose customs duties.

In a 6-3 decision, the Supreme Court ruled that IEEPA “does not authorize the President to impose tariffs.”

However, the Supreme Court’s ruling does not cover tariffs enacted under Section 232 of the Trade Expansion Act of 1962. These duties are intended to target specific products that threaten national security, and remain in effect after Friday’s ruling.

Separately from his own rates, Trump raised tariffs on imports of steel, semiconductors, aluminum and other products deemed harmful to national security.

Here are the sectors that continue to face higher fees even after the Supreme Court decision.

It is not immediately clear how much impact the decision will have on the U.S. and global auto industry. The industry still faces billions of dollars in tariff costs, depending on where imported auto parts or vehicles originate.

Last year, the Trump administration implemented widespread 25% tariffs on vehicles and some auto parts imported into the United States, citing national security risks. Since then, it has entered into independent agreements to reduce fees to 10% to 15% with countries such as the United Kingdom and Japan. Other countries, such as South Korea, have also struck deals to cut interest rates, but it is unclear whether these changes have already taken effect.

The largest automobile company in America, GMIt said last month that it expects tariff costs of between $3 and $4 billion this year ford motor The net impact of the tariffs is expected to be roughly flat year-on-year at $2 billion in 2026, she said earlier this month.

Neither Ford nor GM immediately responded to a request for comment on the Supreme Court’s decision and whether it changes those expectations.

The pharmaceutical industry faces a lot of uncertainty regarding tariffs. Trump has repeatedly threatened to impose tariffs on drug imports, though they have not yet taken effect, in part due to deals negotiated for several years between the administration and drugmakers.

However, if this changes, pharmaceutical tariffs will still be covered under Section 232.

The administration proposed imposing customs tariffs on the industry that may eventually reach 250%. Last July, Trump threatened to impose 200% tariffs on drugs, and the administration has already opened a Section 232 investigation into drugs to investigate the impact of imports on national security.

The tariff threats are a move to push drug companies to manufacture in the United States rather than abroad.

In December, multiple companies signed a deal with Trump to voluntarily lower their prices in exchange for a three-year exemption from any drug tariffs — as long as they invest more in U.S. manufacturing. That deal included major players such as Merck, Bristol Myers Squibb, Novartis And more.

The furniture industry saw little relief from Friday’s Supreme Court ruling.

Last fall, items like sofas, kitchen cabinets, sinks and other were hit with higher tariffs under Section 232. The roughly 25% tariffs will remain in effect now that the IEEPA tariffs have been deemed unconstitutional.

The furniture industry is already facing greater uncertainty, with tariffs expected to rise by 25% to 50% in 2027, as well as broader pressures from rising interest rates and inflation.

Small businesses are the hardest hit, with fewer resources to work with, while larger companies face bankruptcy, such as Value City Furniture’s parent company, American Signature Furniture, which went out of business late last year.

Under Section 232, steel and aluminum imports into the United States are still subject to tariffs.

With aluminum tariffs rising, companies love… coca cola, PepsiCo, Keurig Dr Pepper and Reynolds It will continue to face higher costs associated with manufacturing its products.

Trump raised tariffs on aluminum to 50% last year.

However, some key definitions of the sector had been rolled back, even before Friday’s ruling.

In November, Trump issued an executive order exempting several hundred agricultural products, including bananas, coffee and spices, from tariffs. In September, he similarly eliminated a 10% tariff on Brazilian pulp, a key ingredient in paper towels, diapers and toilet paper.

— CNBC’s Mike Wayland, Anika Kim Constantinou, Gabrielle Vonrugge and Amelia Lucas contributed to this report.