Supreme Court limits Trump tariffs, yet CFOs still navigate a volatile trade landscape
Good morning. The Supreme Court’s decision regarding President Trump’s tariff powers not only redefined the limits of executive authority but also potentially altered the business landscape for finance leaders and manufacturers dealing with ongoing trade policy uncertainty.
In on Friday, the Supreme Court determined that Trump exceeded his authority by utilizing the International Emergency Economic Powers Act to impose tariffs for much of 2025, nullifying parts of the duties on steel, aluminum, and certain Chinese imports. While large corporations have experienced the effects of tariffs, small and midsize businesses have.
One such company is Trim-Tex, a family-owned manufacturer of drywall and stucco corner beads in Illinois with 250 employees. I initially spoke with its CFO, Matt Totsch,, during a time of increased tariff instability. Totsch expressed concerns about the wider cascading effects of tariffs on trade with nations like Canada, a primary U.S. supplier of softwood lumber, and the subsequent impact on construction demand.
“Over the past year, tariffs have continued to be a significant drag on the construction market,” . The company has experienced pressure from the cascading effects of tariffs on essential materials such as softwood lumber, in addition to immigration policies that have constrained the labor pool.
“We finished 2025 with approximately a 10% decline in sales compared to 2024, largely because of that uncertainty,” he stated.
Given the court’s ruling, specialists are advising prudence. American retailers, importers, and exporters should refrain from hastily modifying their pricing approaches. You can access my complete interview with Totsch, plus expert recommendations, .
Managing tariff challenges has been a primary concern for CFOs throughout the past year. Based on the Q4 2025 issued by Duke University and the Federal Reserve Banks of Richmond and Atlanta, trade policy and tariffs continued to rank as major concerns among finance leaders. Survey participants expected price hikes exceeding 3% in 2026.
is frequently regarded as an indicator of American consumer expenditure, and its financial results are closely monitored as an economic barometer. The corporation has periodically encountered cost pressures from tariffs on foreign merchandise.
During Walmart’s Feb. 19 Q4 earnings call, the company indicated that first-quarter operating income growth is projected to be weaker than any other quarter in the fiscal year, partly because of expense timing and year-over-year tariff effects that started in the second quarter of last year.
After the court’s ruling on Friday, Trump issued an order creating a new 10% worldwide tariff and subsequently, one day later, declared he would raise it to 15%, overturning one of his key trade agreements in the process, . Although the 10% tariff was on Feb. 24, uncertainty remains about whether the elevated 15% rate will also take effect on that date.
For CFOs, tariffs and trade policy will undoubtedly continue to be fundamental to cost control and pricing strategies in the coming year.
Sheryl Estrada