With Trump's 'reciprocal' tariffs struck down, here are the industries still facing higher rates

• Automotive sector still faces 25% tariffs on vehicles and certain auto parts, with some countries negotiating lower rates of 10-15%; GM expects $2 billion in tariff impact for 2026 while Ford forecasts $3-4 billion in costs
• Furniture industry remains subject to approximately 25% tariffs on items like couches and cabinets, with rates expected to rise to 50% in 2027, contributing to industry bankruptcies including Value City Furniture's parent company
• Aluminum tariffs raised to 50% continue affecting beverage and consumer packaged goods companies like Coca-Cola, PepsiCo, Anheuser-Busch and Molson Coors; pharmaceutical tariffs up to 200% have been threatened but major drugmakers secured three-year exemptions through voluntary price reduction deals

Market Summary: Trump Tariffs After Supreme Court Ruling

Key Developments

The Supreme Court ruled 6-3 that President Trump's country-specific "reciprocal" tariffs under the International Emergency Economic Powers Act (IEEPA) are unconstitutional. However, tariffs imposed under Section 232 of the Trade Expansion Act of 1962—targeting products deemed threats to national security—remain in effect.

Industries Still Facing Tariffs

Automotive: The sector faces continued uncertainty with 25% tariffs on vehicles and auto parts under Section 232, though some countries negotiated lower rates (10-15%). General Motors expects $3-4 billion in tariff costs for 2025, while Ford anticipates $2 billion in net tariff impact for 2026.

Pharmaceuticals: While tariffs haven't yet been implemented, they remain possible under Section 232. Trump previously threatened 200% duties on pharmaceutical imports. Major companies including Pfizer, Merck, Johnson & Johnson, and AstraZeneca negotiated three-year exemptions in December by agreeing to lower prices and increase U.S. manufacturing investment.

Furniture: The industry receives no relief from the ruling, with approximately 25% tariffs on couches, cabinets, and vanities remaining under Section 232. These duties are set to increase to 50% in 2027, particularly pressuring smaller companies and contributing to bankruptcies like Value City Furniture's parent company.

Food & Consumer Packaged Goods: Steel and aluminum tariffs persist under Section 232, with aluminum duties at 50%. This impacts beverage and food manufacturers like Coca-Cola, PepsiCo, Kraft Heinz, and Constellation Brands. Some relief came earlier through exemptions on hundreds of food items and Brazilian pulp.

Market Implications

The ruling provides partial relief but maintains significant cost pressures on manufacturing-intensive sectors, particularly those dependent on imported materials and components.