# With Trump’s ‘Reciprocal’ Tariffs Struck Down, Here Are the Industries Still Facing Higher Rates
On February 20, 2026, the Supreme Court ruled that President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad **reciprocal tariffs** exceeded his authority, vacating these measures effective immediately.[2] This decision invalidated the baseline reciprocal tariffs—initially set at least 10% on goods from nearly all countries, effective April 5, 2025—along with related “fentanyl” tariffs on Canada, China, and Mexico.[1][2] While refunds for affected imports are processing, many other tariff actions under different legal authorities persist, keeping costs elevated for key U.S. industries.[1][2]
The ruling slashes the projected U.S. effective tariff rate from a potential 16.9% pre-substitution (had IEEPA held) to about 8.0% post-import shifts, still raising over $1.2 trillion in revenue over a decade before economic offsets.[2] Remaining tariffs, often under Section 232 national security provisions or sanctions-related measures, target strategic sectors. Importers and consumers face ongoing higher rates on critical minerals, energy products, steel, aluminum, and more. Below, we break down the industries still hit hardest.
## Steel and Aluminum: Core Section 232 Tariffs Unscathed
**Steel and aluminum** imports remain under heightened duties from longstanding Section 232 actions, unaffected by the SCOTUS decision.[1] A presidential proclamation modifies Annex II to Executive Order 14257, applying increased rates to goods previously in free trade zones, aluminum content in Chapter 76 articles, steel in Chapter 73, and non-metal content in derivatives.[1] These apply broadly, with no IEEPA linkage.
Post-ruling, effective rates on these metals stay elevated, contributing to the 5.6 percentage point average increase.[2] Countries like those in the EU face 15-20% duties (lowered from prior peaks), while India’s steel exports carry 25% plus an additional 25% secondary tariff (withdrawn in February 2026 after oil purchase curbs).[3][6] U.S. manufacturers in autos, construction, and appliances continue paying premiums, with substitution delays pushing full impacts into 2026.[2]
## Critical Minerals and Polysilicon: National Security Threats Loom
**Processed critical minerals** and **polysilicon derivatives** face TBD rates under Section 232 investigations for national security impairment.[1] Commerce Secretary and USTR negotiations aim for agreements, with a status report due July 13, 2026; initial action on minerals began January 14.[1] These target supply chain vulnerabilities, especially from China.
Solar panel makers, EV battery producers, and semiconductor firms bear the brunt, as polysilicon is vital for photovoltaics and chips. Without exemptions, rates could mirror maximum 15% Section 232 levels, potentially spiking the overall effective rate to 24.1% if expanded.[2] Greenland-related threats (withdrawn January 21, 2026) once pressured EU mineral exports at 10-25%, but core probes persist.[1]
## Energy and Sanctions: Russia-Tied Secondary Tariffs
Russia-related measures dominate energy sectors, with **500% tariffs** threatened under the Sanctioning Russia Act of 2025 on imports from countries selling or buying Russian oil, uranium, natural gas, or petrochemicals—if passed and signed.[1] **Secondary tariffs** on Russian-origin goods or oil-purchasing nations (e.g., 100% on goods, 25-50% on oil derivatives) were threatened from March 2025, with India facing 25% until its February 2026 withdrawal.[1][3]
**Ukraine sanctions** extend 500% to all Russia-origin goods.[1] Oil refiners, chemical plants, and utilities importing affected products see costs soar, amplifying global energy price volatility. Pakistan and Philippines trade deals offer no broad relief here.[1]
## China-Specific and Aircraft Pressures
**China trade deal threats** (100%, January 24, 2026) and **aircraft tariffs** (50%, January 29, 2026) linger as additional measures.[1] Low-value Chinese imports face updated duties per April 8, 2025, executive order, with reciprocal modifications discussed February 2026.[4][5] The SCOTUS ruling cut Chinese effective rates by nearly two-thirds, but aviation and electronics sectors endure residuals.[2]
Boeing rivals and airlines importing components pay more, while dairy/lumber faces 250% threats from March 7, 2025—impacting food processors and builders.[1]
## Digital Services Taxes (DSTs) and Broader Impacts
**DST-targeted tariffs** (TBD rates) threaten all products from imposing countries like France (threatened February 21, 2025).[1] Tech firms and exporters face uncertainty, compounding 10-25% EU rates on select goods through May 2026.[1]
| Industry | Key Tariffs Still in Effect | Affected Countries/Products | Projected Impact |
|———-|—————————–|—————————–|——————|
| **Steel/Aluminum** | Section 232 increases | EU (15-20%), India (25%+25%) | Construction, autos up 5-10% costs[1][2][6] |
| **Critical Minerals/Polysilicon** | Sec. 232 TBD | China derivatives | EVs, solar +15% potential[1][2] |
| **Energy/Petrochem** | 25-500% secondary/sanctions | Russia buyers (India withdrawn) | Fuels, chemicals volatile[1][3] |
| **Aircraft/Electronics** | 50-100% additional | China, global | Airlines, tech premiums[1][4] |
| **Dairy/Lumber** | 250% threatened | Various | Food, housing hikes[1] |
These tariffs sustain an 8.0% effective rate, hitting manufacturing and energy hardest amid substitution lags.[2] Businesses should monitor USTR updates, as trade deals (e.g., Cambodia, October 2025) exempt select partners.[4] While reciprocal blanket hikes end, targeted pressures reshape supply chains into 2026 and beyond.
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Original source: CNBC Business – With Trump’s ‘reciprocal’ tariffs struck down, here are the industries still facing higher rates
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