Supreme Court Overturns Trump's Import Duties | How It Affects Car Imports

In a landmark 6-3 decision issued on February 20, 2026, the United States Supreme Court ruled that President Donald Trump violated federal law when he unilaterally imposed sweeping tariffs on imports from countries across the globe. Chief Justice John Roberts, writing for the majority, held that the emergency powers statute the administration relied upon does not authorize the president to impose tariffs — delivering one of the most significant legal rebukes of the administration's economic agenda to date, and one with wide-ranging consequences for international trade, logistics, and vehicle importers worldwide.

For our clients shipping vehicles across the globe, this is the most significant regulatory shift in over a year.

What the Supreme Court Decided

The Court's majority opinion was direct and unambiguous. "We claim no special competence in matters of economics or foreign affairs," Chief Justice Roberts wrote. "We claim only, as we must, the limited role assigned to us by Article III of the Constitution. Fulfilling that role, we hold that IEEPA does not authorize the President to impose tariffs."

The ruling was 6-3, with the three dissenting justices — Clarence Thomas, Samuel Alito, and Brett Kavanaugh — arguing that the tariffs were legally permissible under the statute. The majority, however, found that the administration had asserted powers the law simply does not grant. Roberts noted that the administration had claimed "extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope," but had pointed to no statute that authorized such authority under IEEPA.

Background: What Were the IEEPA Tariffs?

At the center of this case is the International Emergency Economic Powers Act, a 1977 statute designed to give presidents emergency authority to regulate foreign transactions during periods of national crisis. Trump is the first president in IEEPA's nearly 50-year history to attempt to invoke it to impose tariffs.

Beginning in early 2025, the Trump administration used IEEPA to impose sweeping import duties on goods from nearly every U.S. trading partner. The so-called "reciprocal" tariffs raised duties on key trading partners across Europe, Asia, and the Americas. Separate IEEPA-based tariffs of 25% were imposed on goods from Canada and Mexico, justified in part as a response to drug trafficking concerns.

IEEPA does not explicitly mention tariffs. Instead, it allows the president to "regulate … importation" of foreign property during a declared national emergency triggered by an "unusual and extraordinary" threat. The Trump administration argued that language empowers the president to impose tariffs. Critics across the political spectrum challenged that interpretation, and both a federal trade court and a federal appeals court agreed the tariffs exceeded the law's authority before the Supreme Court took up the case.

The Legal Framework: Why the Court Ruled Against the Tariffs

The Court's decision turned on constitutional structure and the limits of executive authority. The majority found that the Constitution "very clearly" gives Congress the power to impose taxes, which include tariffs. "The Framers did not vest any part of the taxing power in the Executive Branch," Roberts wrote.

The ruling also drew on the "major questions doctrine" — a legal principle the Court has applied in recent years to strike down other sweeping unilateral executive actions. The Court found that the administration could not claim such a transformative, economy-reshaping power without clear and explicit authorization from Congress — authorization that IEEPA, by its text, simply does not provide.

The Impact on International Car Trade

This ruling immediately removes the "emergency" surcharge layers that had inflated the cost of importing and exporting vehicles. Here is how it breaks down by vehicle category:

Classic & Collector Cars: Collectors can expect immediate relief from the 10–25% "Reciprocal" duties that affected classic imports from the UK, EU, and Japan. Shipping a vintage Porsche from Stuttgart or a Defender from London just became more affordable.

Modern Vehicles & SUVs: The 25% "Border/Fentanyl" tariffs on vehicles arriving from Mexico and Canada — major hubs for modern SUV and truck production — are now voided.

China Trade: While Section 301 duties remain, the additional 10% IEEPA "Fentanyl" surcharge on all Chinese-origin automotive parts and vehicles is removed.

Key Countries Affected

The following IEEPA-based duty rates are no longer enforceable:

• Mexico & Canada: 25% "Border" Tariffs — Removed

• UK, Germany, France: 10%–15% Reciprocal Caps — Removed

• Japan & South Korea: 15% Reciprocal Rates — Removed

• India & Brazil: 25%–50% Geopolitical Surcharges — Removed

It is important to note that this ruling does not eliminate all U.S. tariffs. Sector-specific tariffs on steel and aluminum — imposed under separate legal authority — remain in effect. Section 301 duties on Chinese goods also remain. The administration has indicated it intends to pursue alternative legal pathways to maintain some form of tariff framework, so businesses should not assume that all rates return immediately to pre-2025 levels.

Potential Refunds

If you have imported a vehicle or parts since February 2025, you may be entitled to a refund of the IEEPA duties paid. While there is potential for refunds in the future, we expect the administration to fight the ruling, and the administration has indicated it may seek to re-impose these rates using alternative statutes (such as Section 232).

There is currently no guidance from US Customs on when and how refunds will be processed. As soon as there is official guidance, we will provide an update. Many importers have already filed suit seeking refunds, and the lower courts will need to work through what that process looks like — it is likely to take time.

What This Means for Vehicle Exporters and Auction Buyers

For U.S. vehicle exporters shipping cars and trucks to international buyers — including auction buyers in Europe, the Gulf, West Africa, Australia, and beyond — the ruling may also affect how trading partners respond. Countries that had imposed retaliatory measures in response to U.S. IEEPA tariffs may now revisit those positions, potentially easing friction in two-way automotive trade.

Collector car buyers sourcing vehicles through platforms such as Bring-A-Trailer, RM Sotheby's, Mecum, or Gooding & Company should continue to consult with qualified import specialists. Country-specific import regulations, duties levied under authorities other than IEEPA, VAT, and compliance requirements remain in place and vary significantly by destination. Freight costs, insurance, and pre-shipment compliance requirements are unaffected by this ruling.

A Note on What Comes Next

Trade policy in the current environment continues to evolve at a pace that makes any point-in-time assessment provisional. The administration has signaled it will seek to use other statutory authorities to preserve elements of its tariff agenda, and Congress may also act. Businesses engaged in international trade are strongly encouraged to work with qualified trade and customs advisors to assess the implications specific to their operations.

Disclaimer: This article is intended for informational purposes only and does not constitute legal, financial, or regulatory advice. Trade regulations, tariff structures, and import requirements change frequently and vary by country, product, and applicable law. West Coast Shipping strongly recommends that importers, exporters, and businesses engaged in cross-border trade consult qualified legal counsel and licensed customs brokers for guidance specific to their circumstances. All regulatory claims in this article reflect reporting as of February 20, 2026, and are subject to change.

How West Coast Shipping Helps You Navigate Changing Trade Conditions

At West Coast Shipping, we've been helping individuals, dealers, collectors, and businesses move vehicles across borders for decades. We understand that trade policy shifts — sometimes dramatically and without much notice — and we've built our services around helping clients adapt.

Whether you're shipping a recently acquired auction vehicle from the U.S. to Europe, relocating a classic car to the UAE or Australia, or managing regular commercial vehicle exports to West Africa or Asia, our team brings current working knowledge of international logistics, documentation requirements, and port procedures to every shipment.

We don't offer legal or customs advice, but we do work alongside the trusted customs brokers and trade professionals our clients need to get their vehicles from point A to point B — accurately documented, properly insured, and delivered with as little friction as possible.

Plan Your International Vehicle Shipment with Expert Support

If you have questions about shipping a vehicle internationally in light of these changing trade conditions, contact our team for a quote or consultation. We're here to help you move forward with confidence.