It’s impossible to read or watch any business news these days without seeing stories about tariff policy - and now there’s a new development that businesses need to consider.

On February 20, 2026, the U.S. Supreme Court ruled in Learning Resources, Inc. v. Trump that the president did not have authority under the International Emergency Economic Powers Act (IEEPA) to unilaterally impose broad tariffs on imports; a legal basis that underpinned a large portion of the tariffs businesses have been coping with over the past year.

This decision invalidates many of the “emergency” tariffs that had applied to goods from China, Mexico, Canada, and other major trading partners - and could lead to billions in potential refunds for importers, even as some new levies have been proposed under different statutory authority.

While the full implications of the ruling (especially around refunds and replacement tariff schemes) are still playing out, what’s already clear is this: tariff policy remains unpredictable and potentially disruptive for supply chains and materials management. That uncertainty underscores why businesses must act now to prepare and adapt.

Import tariffs - which are taxes on incoming goods - can quickly raise a business’ costs, disrupt their supply chains, and impact their ability to compete. Pair that with rapidly evolving legal and policy developments, and continued political volatility and unexpected changes - and it’s easy for impacted companies to be unsure of how best to react. Especially when the immediate impacts are procurement delays, inflated prices, and pressure on profit margins.

How Tariffs and Policy Changes Can Impact Your Business

Some of the main ways that increased tariffs can impact a business’ operational efficiency and profitability are:

• Increased Costs: Tariffs raise the cost of imported goods, reducing margins and forcing companies to pass price increases along to customers. Uncertainty and abrupt changes make things even worse.
• Supply Chain Disruptions: Shifting sourcing strategies to avoid tariffs can cause delays and introduce logistical complexities or quality issues. And it may be impossible to make a change in the first place.
• Retaliatory Measures: In global trade disputes, one country’s tariffs may provoke retaliatory tariffs from another, escalating risk for export-driven businesses.
• Reduced Market Access: Tariff-induced price increases may shrink demand in both domestic and international markets, limiting sales and future growth opportunities.

And now, with tariff legality itself being contested and reconfigured by high courts and trade authorities, businesses face both continued volatility and new strategic openings.

A Proactive Approach to Mitigation — Why It Still Matters

Even in light of recent legal developments, uncertainty in tariff policy will continue to affect materials management, possibly for months or even years as governments, courts, and regulators sort out refunds, replacement tariff schemes, and treaty interpretations.

It is more important than ever before to take a proactive approach to the issue, acting to prepare your business as best as possible for however tariff policy evolves, as all signs point to this fight not being over.

This makes a proactive approach to managing tariffs and supply chain risk more important than ever. While there’s no set blueprint for exactly what tariff policies will be temporary or which will become permanent - even if they’re no longer legally called tariffs - there are some key mitigation strategies that impacted businesses should be considering immediately.

Minimizing the Impact

The biggest key for businesses looking to prepare for and mitigate the potential impact of tariffs is to embrace a strategic materials management approach. Tactics like supplier diversification, inventory optimization, and predictive analytics can help businesses stay agile, control costs, and maintain operational resilience. All of which are critical when it comes to the unpredictability of the current tariff policy environment.

Here are several effective strategies to consider:

Shipping Terms and Country of Origin Awareness - Understanding international shipping terms and the true country of origin can help organizations avoid unnecessary tariff exposure. Taking advantage of preferential trade agreements or sourcing from alternative regions can also reduce duties.

To manage this, businesses should start by simply asking vendors about their supply chain flexibility. Those that can source from multiple regions are better equipped to mitigate high tariffs. For example, European steel may offer better quality and tariff rates.

On the shipping side, always analyze shipping data and make it a point to engage with vendors that have flexible and/or regional sourcing capabilities. Pre-identify at-risk products and plan to make adjustments as needed.

Advanced Procurement Techniques - Techniques such as strategic sourcing, long-term contracts, and forward buying can reduce vulnerability to tariff changes. Bulk purchasing or sourcing from tariff-friendly regions also helps lower per-unit costs.

Diversification is always a good strategy, but in this case, it’s extra important as reducing reliance on a single source country can minimize risk during tariff fluctuations, like the recent legal reversal of emergency tariff authority. In addition, techniques like “pull forward” sourcing - i.e., ordering goods well in advance of need - can help businesses stay agile, better manage pricing changes, and mitigate future impacts. The only concern is that if the business isn’t making informed decisions based on scenario planning and inventory capacity assessments, then excess inventory and/or mismatched forecasts may become an even bigger problem to deal with.

Inventory Stockpiling - Buying critical materials in advance can lock in lower prices and insulate businesses from short-term tariff fluctuations. This is one of the most common strategies used - and we’ve already seen some companies put resources behind this strategy. The benefit is obvious - the ability to have more inventory on hand that is tariff-free, creating better stability and limiting disruptions. It’s a useful mitigation strategy - especially when tariff rates are in flux or when it’s unclear whether duties will be upheld, phased out, or replaced.

But stockpiling, naturally, comes with some challenges as well. In order to use this mitigation strategy a business needs two things: the ability to make an upfront investment, and sufficient storage capacity. In order to be sure this strategy can be successful, businesses should re-evaluate their storage practices and operational efficiencies. Make sure that the infrastructure you already have can handle additional inventory, or look at what you’d need in order to handle additional storage (and whatever the future might bring).

Supplier Relationship Management - Strong supplier relationships are essential in times of trade uncertainty. By fostering open communication and negotiating flexible terms, businesses can share costs, identify alternative sourcing options, and prepare for sudden policy shifts.

Creating a stronger connection aids companies in gaining the latest data, enabling them to make better sourcing and shipping decisions, and to be better prepared for changes in regulations and requirements. That said, much like any relationship, it takes up resources and time to make these connections - and over-reliance on a small group of suppliers and partners can severely limit a business’ agility - something that might be needed as costs increase.

Contract Manufacturing and Co-Packing - Shifting production to countries with favorable trade agreements or lower tariff exposure can reduce costs and increase supply chain flexibility. It’s easy to see what the risks are here, though. Depending on third parties can increase quality and reliability risks - and a transition to contract manufacturing could mean overhauling the entire supply chain, and potentially negating the cost savings you’d be making from avoiding the full impact of the tariff.

Tariff Classification Management - Misclassified products can lead to unnecessary costs. That’s true at any time, but is especially critical when tariffs are volatile. By conducting audits and optimizing tariff schedule classifications, companies can uncover opportunities to reclassify goods under lower-duty categories.

The continued adjustments and complexity of the tariff situation - and the impending court battles, however, means that success requires constant attention to the changes and adjustments in policy, so classifications remain accurate.

Government Incentives and Trade Programs - Programs like duty drawback schemes, free trade zones, and tax credits can provide financial relief and reduce reliance on imported materials. What exactly do these programs entail and which company is eligible for what is - like the tariffs themselves - in a constant state of flux. That said, there are always programs aimed at encouraging domestic production and sourcing. Working with tax and trade experts whose job it is to stay on top of the recent changes and identify relevant programs for their clients is a must. Especially if it can offset an increase in the cost of doing business.

Embracing the Disruption

No one wants unpredictability in their business, but when it comes to tariff policy and trade regulation right now, a lack of stability is the new normal. The Supreme Court ruling that struck down tariffs - and the potential for refunds and replacement levies - is just the latest example of how quickly the landscape can shift.

That uncertainty, however, also presents an opportunity to rethink and strengthen materials management strategies. By adopting a multi-pronged mitigation approach that incorporates improvements to an organization’s sourcing, procurement, and logistics operations, businesses can not only protect their bottom line in the face of tariffs, but also improve supply chain resilience, flexibility and competitive positioning.

No matter what trade policies are ultimately put in place, a strategic and proactive approach to materials management will leave your business stronger and better prepared for whatever comes next.

Blake Peebles is a veteran sales engineer with over a decade of experience driving B2B growth in the industrial storage and workspace solutions sector. Known for his ability to build strong dealer networks, he has consistently exceeded revenue goals across multi-state territories. Currently at Dexco, Blake supports customers and dealers across the Midwest, combining technical expertise with hands-on support. A former “salesperson of the year” at Burroughs Corporation, he has a strong track record of increasing sales, launching new products, and leading customer-focused innovation.