Tariff Fight Continues
One of the latest developments in the Trump administration’s tariff push is the possibility of raising import duties on European cars from 15% to 25%, a move that could severely affect brands without U.S. manufacturing, including Audi. But while tariff debates continue, a federal trade court has blocked the administration’s new 10% global tariffs, ruling them unlawful, according to Automotive News.
For context, the new tariffs do not apply to imported cars and auto parts, which are already subject to separate duties under Section 232. The fresh 10% tariffs, imposed under Section 122 of the Trade Act of 1974, were introduced in February 2026 after the Supreme Court ruled the administration’s International Emergency Economic Powers Act (IEEPA)-based tariffs illegal. For now, the court’s block applies only to the two companies that sued and the state of Washington.
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The Legal Problem
The court stated that the administration exceeded the authority granted under Section 122 in imposing the 10% global tariffs, as the provision is intended for temporary emergency measures tied to a serious “balance-of-payments deficit,” not general trade deficits. Under this provision, import duties can only be raised to 15% and may remain in effect for only 150 days unless extended by Congress.
While this may not directly affect the car industry, the ruling could help reduce the risk of additional blanket tariffs being piled on top of existing automotive duties. Several brands, including Hyundai, have also expressed concerns over the challenges posed by tariffs, which may not immediately affect customers but could have long-term consequences for automakers.
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Billions in Refunds
Still, U.S. automakers like Ford, General Motors, and Stellantis are reportedly set to receive around $2.3 billion in tariff refunds, which are specifically tied to the overturned IEEPA tariffs. Across multiple industries, importers could reportedly receive almost $170 billion in refunds.
While the refund process is reportedly beginning to “heat up,” automakers that import vehicles into the U.S. will still have to navigate Section 232 tariffs. Those duties have also added pressure on brands to build more vehicles stateside, but setting up U.S. manufacturing is costly, time-consuming, and risky given how quickly tariff policies can change after elections or court rulings. For now, some automakers may simply have to absorb the hit.
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