KATHMANDU: The Supreme Court of the United States on Friday ruled 6-3 against President Donald Trump, striking down his sweeping tariffs on foreign goods, including imported vehicles and auto parts. The court said the president exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
Chief Justice John Roberts wrote that the Constitution grants Congress, not the president, the power to impose tariffs. The ruling invalidates the administration’s use of emergency powers to justify broad import duties on nearly all US trading partners.
The decision delivers a major setback to Trump’s economic policy. The federal government had collected more than $200 billion in tariffs since early 2025. Companies have already filed claims seeking potential refunds, although it remains unclear whether repayments will be ordered.
According to reports, President Trump called the ruling a “disgrace” during a meeting with state governors at the White House. The administration has not issued an official statement.
Impact on the automobile sector
The ruling immediately overturns the 25 percent import tariffs imposed on foreign vehicles and auto components. Automakers including Ford Motor Company, General Motors, Honda and Stellantis had faced higher production and sourcing costs under the tariff regime.
Vehicle prices had risen sharply over the past year, particularly for models assembled in Canada, Japan and Germany. Industry analysts say the decision could ease pricing pressure in the coming months. However, tariffs on steel and aluminum remain in place, meaning full price normalization is unlikely in the short term.
The verdict marks a significant shift in US trade policy and could reshape global auto supply chains going forward.
