Supreme Court Strikes Down IEEPA Tariffs: What Comes Next for U.S. Manufacturers and Distributors
Supreme Court ends IEEPA tariffs. What changes under Section 122 and what it means for manufacturers, distributors, and logistics operations.
Resources To Help You Stay Ahead
Navigating Trump 2.0
Veryable is your trusted source for information and insights as you navigate the upcoming policy changes and regulatory shifts driving a U.S. Manufacturing Renaissance under the new administration.
What's Ahead For U.S. Industry?
With Donald Trump back in office and unified Republican control of Congress, U.S. industrial policy is already shifting. Tariffs, tax policy, and regulatory priorities are being reworked in ways that will directly impact manufacturing and distribution operations.
Most leaders don’t have time to track every policy announcement or interpret what actually matters. This resource is built to do that for you. It focuses only on confirmed developments that affect cost structures, supply chains, and operating decisions.
Below is a breakdown of the most relevant policy changes to date, along with a clear view of what has actually changed and what it means for U.S. industry.
Reinstitution and Expansion of Tariffs
Tariffs
Reinstitution and Expansion of Tariffs
Since returning to office in January 2025, President Trump has reestablished tariffs as a central tool of U.S. trade policy, using a combination of executive authority and sector-specific actions to reshape import costs and supply chain decisions.
While initial actions in 2025 focused on reactivating and expanding tariff frameworks, 2026 has been defined by a legal reset and the rapid implementation of new tariff authorities. The timeline below reflects all confirmed tariff actions and closely related enforcement developments year-to-date.
Click Here for a full list of country & product specific tariff rates.
2026 Tariff Developments (Past 60 days)
September 18th:
-> President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, creating a new statutory tariff regime tied to Russian energy. The law directs the administration to impose tariffs of up to 100% on goods from qualifying countries that continue purchasing Russian oil or natural gas or facilitate sanctions evasion, while allowing duties of up to 500% on imports from Russia itself. Country-specific rates have not yet been set. Learn more.
September 8th:
-> President Trump signed five proclamations escalating Section 338 measures against Canada. The actions modified which Canadian products are subject to the existing 50% tariffs, effective September 15, and imposed import bans on certain Canadian alcoholic beverages, dairy products, and motor-vehicle products beginning September 29. The Section 338 tariffs apply regardless of USMCA origin and can apply in addition to Section 232 duties. Learn more.
-> Canada’s retaliatory tariffs on approximately $20 billion of U.S. exports took effect, covering products including steel, dairy, agricultural equipment, furniture, electronics, and prepared foods. Learn more.
August 26th:
-> President Trump expanded the 2026 tariff-rate quota for imported lean beef trimmings by 300,000 metric tons, allowing additional imports at the lower in-quota duty rate through three tranches beginning September 1. Learn more.
August 24th:
-> President Trump announced plans to increase U.S. tariffs on Canadian cars, trucks, and automotive parts to 50% beginning January 1, 2027, following the breakdown of U.S.-Canada trade negotiations. Learn more.
August 22nd:
-> The additional 50% Section 338 tariffs announced in July on approximately $20 billion of covered Canadian goods took effect after President Trump temporarily delayed implementation by three days while trade negotiations continued. The tariffs apply to covered goods even when they otherwise qualify for preferential treatment under USMCA. Learn more.
August 13th:
→ President Trump signed a Section 232 proclamation imposing new tariffs on imported drones and drone components, including a 100% tariff on drones weighing more than 25 kilograms, drones with thermal-imaging capabilities, docking stations for those drones, and certain critical components, as well as a 25% tariff on smaller covered drones and other components. Qualifying imports from the EU, Japan, Liechtenstein, S. Korea, Switzerland, and Taiwan are subject to a 15% rate, while qualifying U.K. imports face 10%. The primary tariffs took effect September 3. Learn more.
→ The U.S. Court of International Trade upheld the administration’s authority to eliminate the de minimis tariff exemption for low-value imports from China, Mexico, and Canada, preserving the 2025 action that ended duty-free treatment for qualifying shipments under $800. Learn more.
August 6th:
→ President Trump signed a Section 232 proclamation establishing minimum import prices for polysilicon and key downstream products and imposing an additional 15% tariff on covered polysilicon derivatives. The framework sets minimum prices of $21/kg for polysilicon, $100/kg for ingots and wafers, $0.22/watt for solar cells, and $0.38/watt for solar modules, with the new measures taking effect 12/4/26. Learn more.
July 31st:
→ President Trump imposed a four-year Section 201 safeguard tariff-rate quota on certain imported quartz surface products after the U.S. International Trade Commission determined that increased imports were causing serious injury to domestic producers. The safeguard took effect 8/15, with Canada, Mexico, and several U.S. trade partners excluded. Learn more.
July 23rd:
→ USTR finalized new Section 301 tariffs on most imports from 60 economies over their failure to prohibit or effectively enforce bans on goods produced with forced labor. Effective July 24, 17 trading partners are subject to a 10% tariff, most others are subject to 12.5%, and imports from the EU, Taiwan, Japan, South Korea, and Switzerland receive country-specific treatment that caps total duties at 10% or 12.5%. Products already covered by Section 232 tariffs and specified critical goods are exempt. The new duties took effect as the temporary 10% Section 122 global surcharge expired after its 150-day statutory period. Learn more.
Trade Agreements & Supply Chain Realignment
Trade Policy
Trade Agreements & Supply Chain Realignment
The Trump administration is using trade agreements and frameworks to reshape supply chains, secure investment and purchasing commitments, and expand market access for U.S. goods. Many of these arrangements combine tariff treatment with domestic investment, energy purchases, economic-security commitments, and sector-specific trade provisions.
Active & Recent Trade Agreements (As of September 2026)
USMCA / North America Trade Framework (Under Review)
→ The U.S. declined to extend USMCA in its current form, moving the agreement into annual review while it remains in force. U.S.-Mexico negotiations continue, while U.S.-Canada talks remain stalled following the breakdown of negotiations and subsequent tariff escalation. Learn more.
US–Taiwan Trade Agreement (Finalized February 2026)
→ 15% U.S. tariff treatment confirmed; Taiwan agreed to eliminate or reduce tariffs on nearly all U.S. goods alongside substantial U.S. purchase and investment commitments. Learn more.
US-India Interim Trade Framework (Released February 2026)
-> India committed to eliminate or reduce tariffs across U.S. industrial and agricultural categories, including changes affecting automobiles and motorcycles, while both countries continue work toward a broader bilateral trade agreement. Learn more.
US-Bangladesh Trade Agreement (Signed February 2026)
-> Establishes a 19% U.S. reciprocal tariff framework with preferential treatment for specified products while expanding market access for U.S. industrial, agricultural, automotive, medical, and technology exports. Learn more.
US–Indonesia Agreement on Reciprocal Trade (Finalized February 2026)
→ Indonesia agreed to eliminate or reduce tariffs on approximately 99% of tariff lines covering U.S. industrial and agricultural goods and address non-tariff barriers affecting autos, medical products, remanufactured goods, and other U.S. exports. Learn more.
US–Japan Agreement (Active)
→ Establishes a 15% U.S. tariff framework on nearly all Japanese imports with sector-specific treatment and includes approximately $550B in Japanese investment commitments directed toward U.S. industries. Learn more.
US–EU Framework (In Force)
→ The EU side of the framework took effect July 1, 2026, removing duties on many U.S. industrial goods, providing preferential access for select U.S. agricultural products, and extending duty-free treatment for U.S. lobster.
→ The framework also includes approximately $600B in additional U.S. investment and $750B in U.S. energy purchases through 2028. Learn more.
US–South Korea Strategic Trade & Investment Deal (Active)
→ Establishes a 15% tariff framework and includes a $350B U.S. investment package and $100B in LNG purchases. Implementation details for portions of the investment package remain under negotiation.Learn more.
US–UK Economic Prosperity Deal (Active)
→ Covers autos, steel, and aluminum arrangements; an expanded pharmaceutical agreement provides qualifying U.K.-origin pharmaceuticals, APIs, and medical technologies with preferential tariff treatment. Learn more.
US–Switzerland / Liechtenstein Trade Framework (Active)
→ U.S. tariff treatment on qualifying Swiss and Liechtenstein goods has been reduced to a 15% framework, while Switzerland and Liechtenstein committed to eliminate duties on U.S. industrial goods, seafood, and selected agricultural products and provide additional agricultural market access. Learn more.
US–China Economic & Trade Framework (Updated May 2026)
→ The May 2026 agreement established U.S.-China Boards of Trade and Investment and included commitments addressing critical-mineral supply constraints, an initial purchase of 200 U.S.-made Boeing aircraft, at least $17B annually in U.S. agricultural purchases through 2028, and expanded market access for U.S. beef and poultry. Learn more.
SE Asia Agreements & Frameworks (Malaysia, Cambodia, Thailand, and Vietnam)
→ Malaysia and Cambodia signed reciprocal trade agreements establishing expanded U.S. market access and economic-security commitments, while Thailand and Vietnam remain under framework agreements with negotiations continuing toward final deals. Learn more.
Latin America Trade Agreements (Argentina, Ecuador, Guatemala, and El Salvador)
→ All four countries finalized reciprocal trade agreements in early 2026, expanding market access for U.S. goods and establishing country-specific tariff schedules and commitments covering non-tariff barriers, economic security, and trade enforcement. Learn more.
US–Jordan Agreement on Reciprocal Trade (Signed July 2026)
→ Jordan will maintain duty-free access for almost all U.S. goods while removing additional non-tariff barriers and expanding access for U.S. agricultural products and motor vehicles. The agreement also includes commitments on supply-chain resilience, investment security, export controls, and duty evasion. Learn more.
Other Active Trade Frameworks (North Macedonia & Uzbekistan)
→ North Macedonia agreed to eliminate customs duties on U.S. industrial and agricultural goods under a February 2026 reciprocal-trade framework. Learn more.
→ Uzbekistan announced an early-harvest package in June 2026 to eliminate or reduce tariffs on a broad range of U.S. industrial and agricultural goods while negotiations continue toward a full reciprocal trade and investment agreement. Learn more.
Incentives For Domestic Manufacturing
Incentives
Incentives for Domestic Manufacturing
Federal support for domestic manufacturing now combines broad tax incentives under the One Big Beautiful Bill Act (H.R. 1) with sector-specific investment, funding, and tariff-linked domestic manufacturing programs. Together, these measures reduce the upfront cost of capital investment and support additional U.S. production capacity in strategic industries.
Tariff-Linked Domestic Manufacturing Programs
→ The administration has established investment-linked tariff programs for primary aluminum, drones and drone components, and polysilicon and its derivatives.
→ Companies with approved U.S. onshoring plans can qualify for reduced or waived tariff treatment tied to commitments to build, expand, or refurbish domestic production capacity.
→ Benefits are contingent on meeting approved investment and construction commitments and may be withdrawn if those commitments are not met.
Critical Minerals & Advanced Materials Investment
→ In August 2026, the administration announced more than $2 billion in federal investments across critical-mineral extraction, processing, battery materials, magnets, and other strategic supply chains, including major investments in domestic battery-anode, scandium, graphite, and permanent-magnet production.
→ More than $180M was also committed to mining schools and workforce-development programs supporting the domestic critical-minerals supply chain. Learn more.
Immediate R&D Expensing (Restored)
→ Beginning with tax years after 2024, domestic R&D expenditures can be fully deducted in the year incurred, reversing the prior five-year amortization requirement.
→ Eligible small businesses may elect retroactive treatment for qualifying domestic R&D expenditures incurred in tax years beginning after 2021 and before 2025.
100% Bonus Depreciation (Restored)
->Section 168(k) permanently restores 100% additional first-year depreciation for eligible property acquired after January 19, 2025, including qualified machinery, equipment, and tools.
Qualified Production Property (QPP) Expensing (New Category)
→ Section 168(n) allows up to 100% depreciation for qualifying nonresidential real property used in manufacturing, chemical production, agricultural production, or refining.
→ Treasury and IRS have issued interim guidance covering eligible property and activities, elections, and recapture rules; taxpayers may rely on that guidance while proposed regulations are developed.
EBITDA-Based Interest Deductibility (Restored)
-> Reverts the business interest deduction standard from EBIT back to EBITDA, increasing allowable deductions for capital-intensive manufacturers.
Tax Policy Reforms
Tax Reform
Tax Policy Reforms
Since January 2025, federal tax reform affecting U.S. industry has been driven primarily by the One Big Beautiful Bill Act (H.R. 1), signed into law on July 4, 2025. The law makes significant changes to capital investment, R&D, business financing, pass-through taxation, international tax rules, and estate planning.
Full Expensing for Capital Investment
→ Section 168(k) permanently restores 100% bonus depreciation for qualified machinery, equipment, and other eligible property acquired and placed in service after January 19, 2025.
→ Section 168(n) allows up to 100% depreciation for Qualified Production Property (QPP), including qualifying nonresidential real property used in manufacturing, chemical production, agricultural production, or refining.
→ QPP construction generally must begin after January 19, 2025 and before January 1, 2029, with property placed in service after July 4, 2025 and before January 1, 2031.
Section 179 Expensing Expanded
→ Beginning in 2025, the maximum Section 179 deduction increases to $2.5 million, with the deduction beginning to phase out once qualifying property placed in service exceeds $4 million.
Immediate R&D Expensing Restored
→ Domestic research and experimental expenditures incurred in tax years beginning after 2024 may be deducted in the year incurred, reversing the prior five-year amortization requirement.
→ Eligible small businesses may elect retroactive treatment for qualifying domestic R&D expenditures incurred in tax years beginning after 2021 and before 2025.
EBITDA-Based Interest Deductibility Restored
→ Beginning in 2025, depreciation, amortization, and depletion are again added back when calculating adjusted taxable income under Section 163(j), effectively restoring the EBITDA-based standard for determining business interest deductions.Pass-
Through Deduction Extended and Enhanced
→ Section 199A’s qualified business income deduction was extended beyond its scheduled 2025 expiration.
→ Beginning in 2026, the law expands the income phase-in ranges and introduces a minimum deduction for certain taxpayers with active qualified business income.
International Tax Rules Modified
→ Beginning in 2026, the former GILTI and FDII frameworks are renamed Net CFC Tested Income (NCTI) and Foreign-Derived Deduction Eligible Income (FDDEI), with corresponding changes to their tax treatment.
→ The law also modifies the Base Erosion and Anti-Abuse Tax (BEAT) and other cross-border tax provisions.
Estate & Gift Tax Exemption Increased
→ The federal estate and gift tax basic exclusion amount increases to $15 million per individual in 2026, with inflation adjustments applying in future years.
Regulatory Reforms
Regulatory Reforms
Regulatory Reforms
Since January 2025, federal regulatory policy affecting U.S. industry has changed across labor classification, federal contracting, environmental regulation, corporate disclosure, and project permitting. Several changes are already final and in effect, while others remain in formal rulemaking.
Key Regulatory Developments
Energy & Environmental Policy: Federal GHG Regulations Reduced
→ In February 2026, EPA finalized rescission of the 2009 Endangerment Finding and eliminated federal greenhouse gas emission standards for highway vehicles and engines. The action does not affect standards for traditional air pollutants.
→ In September 2026, EPA finalized a partial repeal of the 2024 Carbon Pollution Standards for fossil fuel-fired power plants, removing the majority of those greenhouse gas requirements. EPA also proposed rescinding the remaining federal power-sector GHG standards, but that broader action is not yet final.
Chemical Manufacturing: Two-Year HON Rule Exemptions Granted
→ In July 2026, President Trump granted certain chemical manufacturing facilities a two-year extension from applicable compliance deadlines under EPA’s 2024 Hazardous Organic NESHAP Rule.
→ During the exemption period, covered facilities remain subject to the emissions and compliance requirements that applied before the 2024 rule.
→ The relief applies only to stationary sources identified in the proclamation.
Industrial Air Permitting: Affirmative Defense Protections Restored
→ In May 2026, EPA withdrew a 2023 rule that had eliminated emergency-related affirmative defense provisions for Title V operating permits.
→ The restored framework allows qualifying facilities to seek protection from civil penalties when emissions exceedances result from certain sudden, unavoidable emergencies or equipment malfunctions.
Labor Classification: DOL Changes Independent Contractor Enforcement
→ In May 2025, the Department of Labor directed investigators not to apply the 2024 independent contractor rule when enforcing the Fair Labor Standards Act, instead relying on longstanding enforcement guidance.
→ In February 2026, DOL formally proposed rescinding the 2024 rule and replacing it with a streamlined economic-realities analysis. The replacement rule has not yet been finalized.
Federal Contractor Compliance: Executive Order 11246 Revoked
→ In January 2025, President Trump revoked Executive Order 11246, and the Department of Labor subsequently ended investigative and enforcement activity under the order.
→ The action ended the affirmative-action requirements imposed through Executive Order 11246 but did not itself repeal separate statutory requirements applicable to federal contractors under other federal laws.
Corporate Reporting: SEC Climate Disclosure Rescission Proposed
→ In March 2025, the SEC ended its defense of the 2024 climate-disclosure rules, which had already been stayed during litigation.
→ In May 2026, the SEC formally proposed rescinding the climate-disclosure rules in their entirety. The rescission remains in the rulemaking process and has not yet been finalized.
Permitting & NEPA: Federal Review Framework Restructured
→ Federal Council on Environmental Quality regulations implementing the National Environmental Policy Act were removed effective April 2025, with the rescission finalized in January 2026. Federal agencies are implementing NEPA through revised agency-specific procedures and the statute itself.
→ Separate federal actions have also directed agencies to streamline permitting and regulatory review for priority domestic production projects, including pharmaceutical manufacturing.
What This Means for Your Operation
Policy changes are starting to show up in day-to-day operations. Input costs are shifting, supply chain decisions are being reshaped, and capital investment is being pulled forward under new conditions. At the same time, demand variability and labor challenges have not gone away.
Most operations are not structured to adjust to this quickly. The challenge is not setting direction, but maintaining consistent execution as conditions change. That requires the ability to adjust capacity, manage labor costs, and maintain throughput without adding unnecessary fixed cost.
The companies that perform well in this environment will be those that can respond to change without overcommitting resources or disrupting operations. Veryable supports this by enabling businesses to build a flexible labor pool that can scale with demand, absorb variability, and maintain execution without relying solely on fixed headcount. Learn more -->
U.S. Manufacturing Today Podcast
Hosted by Veryable’s Head of Reindustrialization & Growth Innovation Matt Horine, the U.S. Manufacturing Today Podcast explores the economic, policy, and operational forces reshaping the U.S. industrial base.
Each episode examines the trends driving America’s reindustrialization, from trade policy and tariffs to supply chain realignment and domestic production investment. The show features conversations with manufacturing leaders and operations professionals navigating these shifts in real time.
New episodes are released every Tuesday at 6 AM CST. Listen on Apple Podcasts, Pocket Casts, Spotify, and YouTube.
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Looking For Specific Guidance?
Amidst policy changes, uncertainty is inevitable. If you need further guidance or have any questions on any of these topics, we've got you covered - our team has over a century of combined experience in the manufacturing and distribution sectors.