CMB Stock News Of The Day š°šļøšļøšš
- Yung Goonie
- 5 days ago
- 1 min read
āSupreme Court of the United States Tariff Ruling Offers Limited Relief for AutomakersāšØ
The Supreme Courtās latest decision striking down a portion of President Trumpās tariffs delivered only partial relief to U.S. automakers ā and far from a full reset.
The ruling specifically targets tariffs imposed under the International Emergency Economic Powers Act (IEEPA), not those enacted under Section 232. That distinction matters. The 25% tariffs on automobiles and auto parts ā implemented under Section 232 ā remain firmly in place.
Still, major automakers such as Ford Motor Company, General Motors, and Stellantis arenāt entirely unaffected. IEEPA tariffs had applied to certain machinery, lower-cost raw materials, and select components that contribute to overall production expenses.
According to the Center for Automotive Research, IEEPA-related tariffs amount to roughly $250 per vehicle for Detroitās Big Three ā totaling about $902 million in added costs. While thatās significantly smaller than the estimated $4,240 per vehicle impact tied to Section 232 tariffs, itās still a meaningful expense in a margin-sensitive industry.
The marketās reaction reflected that nuance.
Auto stocks posted only modest gains compared to retailers, signaling cautious optimism rather than outright celebration.
For automakers, this ruling trims costs at the edges ā but the larger tariff burden remains intact.
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