Court voids parts of Trump's IEEPA tariffs; GM expects $500M refund
- General Motors raised its 2026 guidance after booking a $500 million benefit tied to refunds from Trump tariffs the Supreme Court struck down. - The court’s February 20 ruling said the International Emergency Economic Powers Act did not authorize those tariffs, voiding “reciprocal” and “fentanyl” duties. - Trump shifted to Section 122 tariffs capped at 15% for 150 days, leaving broader trade costs in place. (piie.com)
General Motors raised its 2026 outlook after booking a roughly $500 million benefit from refunds tied to Trump tariffs the Supreme Court struck down. (cnbc.com) GM said adjusted first-quarter earnings were $3.70 a share, ahead of the $2.62 analysts expected, on $43.62 billion in revenue. (cnbc.com) The automaker lifted its 2026 adjusted earnings guidance to $13.5 billion to $15.5 billion, or $11.50 to $13.50 a share, up by $500 million. (cnbc.com) The legal fight turns on the International Emergency Economic Powers Act, a sanctions law Trump used to impose “reciprocal” and “fentanyl” tariffs on imports from most countries. (gtlaw.com) On February 20, 2026, the Supreme Court ruled 6-3 that IEEPA does not authorize presidential tariffs, in Trump v. V.O.S. Selections and Learning Resources, Inc. v. Trump. (gtlaw.com) That decision did not erase every Trump tariff. Duties imposed under Section 232 on autos, steel, aluminum, semiconductors and lumber, and Section 301 tariffs on China, remained in effect. (gtlaw.com) GM said those other levies still leave it facing $2.5 billion to $3.5 billion in gross tariff costs this year, down from its earlier $3 billion to $4 billion estimate. (cnbc.com) Within hours of the ruling, Trump turned to Section 122 of the Trade Act of 1974, first announcing 10% global tariffs and then raising them to the law’s 15% ceiling. (piie.com) (hklaw.com) Section 122 tariffs expire after 150 days unless Congress extends them, which is why businesses still face a short clock and shifting rules. (piie.com) (commonslibrary.parliament.uk) The House of Commons Library said that legal switch left uncertainty over how current U.S. tariffs interact with deals already struck, including the U.K.-U.S. Economic Prosperity Deal. (commonslibrary.parliament.uk) For GM, the court ruling produced an immediate accounting gain. For importers still paying other tariffs, the bigger question is what survives after the 150-day Section 122 window runs out. (cnbc.com) (piie.com)
