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 (Last 3 months)
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.
-> Canada announced dollar-for-dollar retaliatory tariffs on U.S. goods beginning September 8, targeting sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. 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 take effect 21 days after signing. 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.
July 20th:
→ President Trump signed three proclamations imposing an additional 50% tariff on a broad range of Canadian goods under Section 338 of the Tariff Act of 1930. The tariffs apply even to covered goods otherwise eligible for preferential treatment under USMCA, while products already subject to Section 232 tariffs, energy products, potash, fish, and critical minerals remain exempt. Learn more.
July 15th:
→ USTR finalized a 25% Section 301 tariff on imports from Brazil, subject to specified product exemptions, effective July 22, 2026. Learn more.
June 29th:
→ President Trump temporarily authorized duty-free importation of phosphate fertilizer from Morocco for up to eight months, suspending the collection of certain trade-remedy duties and deposits to address domestic supply concerns. Learn more.
June 1st:
→ President Trump issued a proclamation modifying the Section 232 tariff framework for steel, aluminum, and copper derivative products. The changes, effective June 8th, expanded coverage to additional product categories, adjusted U.S.-content requirements for preferential treatment, and clarified tariff treatment for certain derivative imports while maintaining existing Section 232 tariffs on the underlying metals. Learn more.
Trade Agreements & Supply Chain Realignment
Trade Policy
Trade Agreements & Supply Chain Realignment
The Trump administration is increasingly using bilateral trade agreements to reshape supply chains, secure investment commitments, and reduce reliance on strategic competitors. Many of these frameworks combine tariff policy, domestic investment targets, energy purchasing agreements, and sector-specific trade incentives. Below is a consolidated overview of active trade frameworks and finalized agreements.
Active & Recent Trade Agreements (As of August 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 broke down in August following implementation of new Section 338 tariffs on covered Canadian goods. Learn more.
US–Taiwan Trade Agreement (Finalized February 2026)
→ 15% U.S. tariff rate confirmed; Taiwan to eliminate/lower tariffs on nearly all U.S. goods alongside large purchase/investment commitments. Learn more.
US-India Interim Trade Framework (Released February 2026)
-> Commits India to reduce tariffs across many U.S. industrial and agricultural categories; including significant changes to auto/motorcycle duties. Learn more.
US-Bangladesh Trade Agreement (Signed February 2026)
-> 19% U.S. tariff framework reported; includes concessions for some apparel made with U.S.-origin inputs. Learn more.
US–Japan Agreement (Active)
→ 15% U.S. tariff framework on nearly all Japanese imports with sector-specific treatment; includes major Japan investment commitments. Learn more.
US–EU Framework (In Force)
→ The EU side of the framework came into force on 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 investment in the U.S. and $750B in U.S. energy purchases through 2028.
US–South Korea Strategic Trade & Investment Deal (Active)
→ 15% tariff framework; includes ~$350B U.S. investment and $100B LNG purchases. Learn more.
US–UK Economic Prosperity Deal (Active)
→ Core deal covers autos, steel, and aluminum arrangements; expanded April 2026 pharmaceutical agreement exempts qualifying U.K.-origin pharmaceuticals, APIs, and medical technologies from certain future tariff exposure. Learn more.
US–Switzerland (Implementation Phase)
→ Tariff alignment discussions centered around a ~15% baseline and investment commitments; implementation timing remains uncertain pending final negotiations. 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, a 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.
US-Vietnam Framework (In Negotiation)
→ Maintains ~20% tariffs on most Vietnamese goods; framework discussions include potential preferential access for U.S. exports. Learn more.
Latin America Trade Agreements (Argentina, Ecuador, Guatemala, and El Salvador)
→ All four countries finalized reciprocal trade agreements in early 2026, providing expanded market access for U.S. goods and establishing country-specific tariff schedules and commitments on non-tariff barriers, economic security, and trade enforcement. Learn more.
US–Uzbekistan Early Harvest Framework (Announced June 2026)
→ Uzbekistan committed to eliminate or reduce tariffs on a wide range of U.S. industrial and agricultural goods, while both countries agreed to accelerate talks toward a reciprocal trade and investment agreement. Learn more.
US–Indonesia Agreement on Reciprocal Trade (Finalized February 2026)
→ Indonesia will 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–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.
Incentives For Domestic Manufacturing
Incentives
Incentives For Domestic Manufacturing
The One Big Beautiful Bill Act (H.R. 1) represents a major federal push to accelerate domestic manufacturing and supply chain investment. It centers on tax treatment changes that improve cash flow, shorten payback periods, and increase the attractiveness of U.S.-based production.
What’s New:
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.
Primary Aluminum Onshoring Incentive
→ Companies with approved plans to build, expand, or refurbish U.S. primary aluminum production facilities may import a quantity of primary aluminum corresponding to the project’s anticipated annual output at half the otherwise applicable Section 232 tariff rate. Learn more.
→ Construction must begin by January 20, 2029, and tariff benefits may be withdrawn if participating companies fail to meet their domestic investment commitments
Immediate R&D Expensing (Restored)
→ Beginning in tax year 2025, domestic R&D expenditures can be fully deducted in the year incurred, reversing the prior requirement to amortize over five years.
→ Includes provisions allowing smaller firms to apply this treatment retroactively to recent tax years.
100% Bonus Depreciation (Restored)
->Section 168(k) restores full expensing for qualified machinery, equipment, and tools placed in service after January 19, 2025.
Qualified Production Property (QPP) Expensing (New Category)
→ Section 168(n) introduces full expensing for certain production-related real estate investments, including new facilities and qualified manufacturing improvements.
→ Scope and qualification criteria remain a key detail to monitor as implementation guidance is finalized.
EBITDA-Based Interest Deductibility (Restored)
-> Reverts the business interest deduction standard from EBIT back to EBITDA, increasing allowable deductions for capital-intensive manufacturers.
Why This Matters
These provisions materially change the economics of U.S.-based production:
--> Faster capital recovery: Immediate expensing reduces payback periods on automation, equipment, and facility investments
--> Improved project viability:More projects clear internal hurdle rates due to upfront tax treatment
--> Stronger financing capacity:EBITDA-based deductions increase debt capacity for large-scale industrial investments
--> Stackable with existing incentives: When combined with CHIPS and IRA programs, these provisions significantly increase total available support for domestic production
--> Part of a broader industrial policy stack: When combined with the CHIPS and Science Act and the Inflation Reduction Act, these provisions layer tax incentives on top of direct subsidies and sector-specific programs
Tax Policy Reforms
Tax Reform
Tax Policy Reforms
Since January 2025, federal tax reform impacting U.S. industry has been driven primarily by the passage of H.R.1 – the One Big Beautiful Bill Act, signed into law on July 4, 2025. The legislation builds on the Tax Cuts and Jobs Act (TCJA) and introduces targeted changes aimed at improving capital investment, financing, and domestic production economics. Below are key tax reforms since January 2025.
Full Expensing for Capital Investment (Expanded and Extended)
→ 100% bonus depreciation restored for qualified machinery, equipment, and short-lived assets
→ Section 168(n) introduces expensing for Qualified Production Property (QPP), including new facilities and major production-related improvements
→ Construction must begin before December 31, 2028, and assets must be placed in service before January 1, 2031
Immediate R&D Expensing (Restored)
-> Reinstates full deduction of domestic R&D expenses in the year incurred, reversing the prior amortization requirement
EBITDA-Based Interest Deductibility (Restored)
→ Returns interest deductibility to an EBITDA basis, increasing allowable deductions for capital-intensive businesses
Corporate and Pass-Through Tax Treatment (Stabilized)
→ Maintains the 21% corporate tax rate
→ Extends Section 199A pass-through deduction beyond its original 2025 sunset
International Tax Adjustments (Modified, Not Replaced)
→ Retains and adjusts FDII, GILTI, and BEAT provisions
→ Changes aimed at reducing incentives for profit shifting and supporting domestic investment
Estate Tax Exemption (Extended)
→ Maintains elevated exemption levels established under TCJA, reducing estate tax exposure for closely held businesses
What This Means for U.S. Industry
→ Greater investment certainty
Key TCJA provisions are extended or stabilized, reducing policy risk
→ Improved capital deployment economics
Expensing provisions significantly lower the after-tax cost of equipment, facilities, and automation
→ Stronger balance sheet flexibility
Interest deductibility changes increase financing capacity for expansion
→ Continued emphasis on domestic production
Tax structure increasingly favors U.S.-based investment over offshore alternatives
Regulatory Reforms
Regulatory Reforms
Regulatory Reforms
Following the passage of H.R.1 and the start of President Trump’s second term, federal regulatory posture has shifted toward reduced enforcement, streamlined permitting, and lower compliance burden across several areas impacting U.S. manufacturers and distributors.
Key Regulatory Developments
Chemical Manufacturing: Two-Year HON Rule Exemption Granted
→ In July 2026, President Trump granted certain chemical manufacturing facilities a two-year exemption 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 exemption applies only to stationary sources identified in the proclamation, not to the chemical manufacturing sector broadly. Learn more.
Labor Classification: DOL Halts Enforcement of Independent Contractor Rule
→ In May 2025, the U.S. Department of Labor announced it will not enforce the 2024 independent contractor rule under the Fair Labor Standards Act (FLSA)
→ Reduces near-term federal enforcement risk for companies using 1099 labor
→ The rule itself remains in place and can still be enforced through private litigation or state-level action
Federal Contractor Compliance: Affirmative Action Enforcement Rolled Back
-> The administration rescinded enforcement of affirmative action requirements tied to federal contracting under prior executive authority
→ Reduces compliance obligations for manufacturers and logistics companies operating as federal contractors
Corporate Reporting: Climate Disclosure Requirements Withdrawn
→ The administration has paused or withdrawn several proposed federal disclosure requirements, including climate-related reporting tied to federal contracting
→ Reduces anticipated compliance burden, particularly for small and mid-sized manufacturers
→ Existing statutory requirements, including those under the Corporate Transparency Act, remain in effect
Energy & Environmental Policy: EPA Rescinds Endangerment Finding
→ In February 2026, the EPA finalized rescission of the 2009 EPA Endangerment Finding, which previously served as the legal foundation for federal greenhouse gas regulation
→ Signals a major shift in federal environmental regulatory authority affecting industrial emissions and energy policy
Permitting & Industrial Development: Federal Acceleration Efforts
→ Federal actions have prioritized faster permitting and reduced regulatory friction for domestic energy, critical minerals, and pharmaceutical manufacturing projects
→ Includes efforts to streamline approvals, increase project visibility, and coordinate review timelines
Implications for Manufacturers and Distributors
→ Increased labor flexibility (with caveats)
Reduced federal enforcement pressure makes it easier to utilize independent contractors, though legal risk is not fully eliminated
→ Faster project timelines
Permitting and coordination changes may accelerate timelines for new facilities and industrial expansion
→ Shifting regulatory baseline for energy and emissions
Changes to environmental policy may alter long-term operating cost structures, particularly in energy-intensive industries
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.
Thought Leadership Blog
Resources To Help You Stay Ahead
Gain valuable insights related to upcoming changes under the new administration
Reading the Signals: Why Logistics Feels Early-Cycle Shifts Before Manufacturing
PMI, truckload signals, and inbound volumes point to a logistics-first recovery. Here’s what it means inside warehouses.
Breaking Down January's 52.6% PMI Reading, and Why It Makes Labor Flexibility Mission Critical
A 52.6 PMI signals rising but uneven demand. We explain what that means for operations and labor planning on the floor.
Beyond the GDP Headlines: Why Nonlinear Growth Requires a Flexible Labor Model
GDP is up, but floor activity is uneven. Learn why fixed labor models are your new bottleneck and how to build a scalable labor model for nonlinear growth.
The Implications of a Rebalancing Economy for Capacity and Labor Strategy in 2026
Macro pressures are easing into 2026, but growth will return unevenly. Learn what a rebalancing economy means for capacity and labor strategy.
What Uneven Demand Means for Operational Planning in Manufacturing and Logistics in 2026
Economic growth is holding, but demand is uneven. Learn how this shift is reshaping operational planning and labor strategy for 2026.
The Trade Deficit Is Shrinking. That’s Not a Recession Signal. It’s a Reindustrialization Signal.
A narrowing trade deficit points to reshoring acceleration and uneven demand ahead. Learn how companies can meet the moment while minimizing risk.
Down Cycle Agility: Why It Matters More Than Ever in Today’s Economic Environment and How Veryable Enables It
Learn how on-demand labor helps companies adjust quickly in downturns, protect margins, and maintain output as demand becomes more volatile in a deflationary environment.
October Tariff & Trade Policy Recap: Delayed Pharma Tariffs, Truck Duties Finalized, and New Enforcement Pressures
October’s trade recap: delayed tariffs, tighter enforcement, and new trade deals reshape U.S. manufacturing and supply chains.
Trump 2.0 September Tariff & Trade Recap: Discussing New Tariffs, Plus The Latest Trade Deals and Court Rulings
This article provides a recap of the most important tariff and trade moves in September and what they mean for manufacturers and distributors
A New Normal for Houston Manufacturers & Distributors: Thriving Under Trump 2.0
Houston’s industries face tariffs, oil slowdowns, budget cuts, and labor enforcement. Resilience comes from flexing operations, not waiting for stability.
Trump 2.0 Week 30 In Review: Discussing The China Deadline Extension, The Potential For Even Higher Tariffs on India, and More
U.S. trade and manufacturing take center stage this week as new policies and investments create shifts for businesses and global trade relations.
Trump 2.0 Week 29 In Review: Discussing The Impending Tariffs on Semiconductors and Pharmaceuticals, Escalating Tensions With India, and More
U.S. ramps up tariffs on India, semiconductors, and pharmaceuticals, reshaping trade and boosting domestic manufacturing amid growing global economic tensions.
Trump 2.0 Week 28 In Review: Discussing The New Country-Specific Rates, The New Tariffs on Copper & Transshipped Goods, and More
Significant shifts in U.S. trade policy, including fresh tariffs and key international deals, present both risks and opportunities for manufacturers and distributors nationwide.
Trump 2.0 Week 27 In Review: New Trade Deals with Japan & Indonesia, Stalled Talks with Canada & India, and Tense Negotiations with the EU
New trade deals, tariff hikes, and a $50B reshoring move—discover what this week’s global trade updates mean for U.S. manufacturers.
Breaking Down The ‘One Big Beautiful Bill’ and What It Means For Manufacturers and Distributors
Discover how the One Big Beautiful Bill transforms U.S. manufacturing, logistics, and supply chains—and how Veryable helps businesses capitalize on it.
How Veryable Addresses The Top 5 Challenges Highlighted in the NAM's Q2 2025 Survey
In this article, we’ll explore the top 5 challenges from the survey and how businesses can address them with Veryable’s on-demand labor model.
Hidden Inefficiencies in American Manufacturing and How It Impacts Capacity & Consumer Prices
There are hidden inefficiencies in American manufacturing that give us a feeling of "constraint" when the reality is that we have the ability to get so much more out of what we already have.
Trump’s New Tariff on Imported Vehicles: Details, Implications, and How Veryable Can Help
In this article, we’ll break down the details and implications of this new vehicle tariff, and discuss how leveraging Veryable can provide a competitive advantage at this moment in time.
The Reshoring Reckoning: Why American Manufacturing Can’t Afford to Wait This One Out
As tariffs and reshoring reshape global trade, American Manufacturing faces a pivotal moment. This article explores why operations clinging to rigid workforce models will falter while those embracing operational agility with Veryable will thrive.
Section 232 Tariffs: What They Are, Implications for Manufacturers & Distributors, & How Veryable Can Help
In this article, we’ll discuss the restoration of the Section 232 Tariffs, the implications for the U.S. manufacturing sector, and how Veryable can help businesses navigate & capitalize on these changes.
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.