"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."
The Supreme Court ruled 6-3 that using the International Emergency Economic Powers Act to impose broad tariffs was an overreach, striking down portions of steel, aluminum, and some Chinese import duties for much of 2025. Tariffs have disproportionately hurt small and midsize firms. Trim-Tex, a 250-person maker of drywall and stucco corner beads in Illinois, reported higher input costs, tighter labor from immigration policy shifts, and weaker construction demand. Trim-Tex's CFO reported about a 10% sales decline in 2025 versus 2024. Experts advise caution on rapid price changes, and trade policy remains a top CFO concern per the Q4 2025 survey.
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