Supreme Court limits Trump tariffs, but CFOs still face a volatile trade landscape

Sheryl Estrada

Mon, February 23, 2026 at 9:09 PM GMT+9 3 min read

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Good morning. The Supreme Court’s ruling on President Trump’s tariff authority did more than redraw the boundaries of executive power. It also potentially shifted the operating environment for finance chiefs and manufacturers managing sustained trade-policy volatility.

In a 6–3 decision on Friday, the justices ruled that Trump overstepped by using the International Emergency Economic Powers Act to levy tariffs throughout much of 2025, striking down portions of the duties on steel, aluminum, and some Chinese imports. Large firms have been affected by tariffs, but small and midsize businesses have felt the impact disproportionately.

One of them is Trim-Tex, a 250-person, family-owned maker of drywall and stucco corner beads in Illinois. I first spoke with its CFO, Matt Totsch, in February 2025, during a period of heightened tariff volatility. Totsch was concerned about the broader ripple effects of tariffs on trade with countries such as Canada, a major supplier of softwood lumber to the U.S., and the downstream consequences for construction demand.

“Over the past year, tariffs have continued to be a significant drag on the construction market,” he told me on Friday. The company has found itself squeezed by the ripple effects of tariffs on key inputs like softwood lumber, as well as by immigration policies that have tightened the labor market.

“We ended 2025 down about 10% in sales from 2024, due in large part to that uncertainty,” he said.

In light of the court’s decision, experts are urging caution. U.S. retailers, importers, and exporters should avoid moving too quickly to adjust pricing strategies. You can read my full interview with Totsch, along with expert advice, here.

Navigating tariffs has been a top concern for CFOs over the past year. According to the Q4 2025 CFO Survey released by Duke University and the Federal Reserve Banks of Richmond and Atlanta, trade policy and tariffs remained among finance chiefs’ top worries. Respondents anticipated price increases of more than 3% in 2026.

Walmart is often viewed as a bellwether for U.S. consumer spending, and its earnings reports are closely watched as an economic signal. The company has periodically faced cost headwinds from tariffs on imported goods.

During Walmart’s Feb. 19 Q4 earnings call, the company said first-quarter operating income growth is expected to be lower than any other quarter in the fiscal year, due in part to expense timing and year-over-year tariff impacts that began in last year’s second quarter.

Following the court’s decision on Friday, Trump signed an order establishing a new 10% global tariff and then, a day later, announced he would increase it to 15%, upending one of his signature trade deals in the process, Fortune reported. While the 10% tariff was set to take effect on Feb. 24, it is unclear if the increased 15% rate will also begin on that date.

For CFOs, tariffs and trade policy will certainly remain central to cost management and pricing decisions in the year ahead.

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Sheryl Estrada
sheryl.estrada@fortune.com

This story was originally featured on Fortune.com

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