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.
“Over the past year, tariffs have continued to be a significant drag on the construction market,” he told me on Friday. The company has found itself squeezed by the ripple effects of tariffs on key inputs like softwood lumber, as well as by immigration policies that have tightened the labor market.
“We ended 2025 down about 10% in sales from 2024, due in large part to that uncertainty,” he said.
In light of the court’s decision, experts are urging caution. U.S. retailers, importers, and exporters should avoid moving too quickly to adjust pricing strategies. You can read my full interview with Totsch, along with expert advice, here.
Navigating tariffs has been a top concern for CFOs over the past year. According to the Q4 2025 CFO Survey released by Duke University and the Federal Reserve Banks of Richmond and Atlanta, trade policy and tariffs remained among finance chiefs’ top worries. Respondents anticipated price increases of more than 3% in 2026.
Walmart is often viewed as a bellwether for U.S. consumer spending, and its earnings reports are closely watched as an economic signal. The company has periodically faced cost headwinds from tariffs on imported goods.
During Walmart’s Feb. 19 Q4 earnings call, the company said first-quarter operating income growth is expected to be lower than any other quarter in the fiscal year, due in part to expense timing and year-over-year tariff impacts that began in last year’s second quarter.
Following the court’s decision on Friday, Trump signed an order establishing a new 10% global tariff and then, a day later, announced he would increase it to 15%, upending one of his signature trade deals in the process, Fortune reported. While the 10% tariff was set to take effect on Feb. 24, it is unclear if the increased 15% rate will also begin on that date.
For CFOs, tariffs and trade policy will certainly remain central to cost management and pricing decisions in the year ahead.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
John L. "Jack" Sullivan was promoted to CFO, treasurer and EVP at Nucor Corporation (NYSE: NUE), manufacturer of steel and steel products, effective March 1. He will succeed Steve Laxton, who was promoted to president and chief operating officer. Sullivan began his career with Nucor in 2022 as general manager of investor relations and was promoted to his current role in 2025. He previously worked for Duke Energy for 13 years, holding positions across treasury, corporate development and investor relations. Before that, he spent nine years in corporate and investment banking at Bank of America.
Scott Bomar was appointed SVP, CFO and treasurer of YETI Holdings, Inc. (NYSE: YETI), effective Feb. 23. Bomar succeeds Mike McMullen, who will serve in an advisory capacity until May 31. Bomar joins YETI from The Home Depot, Inc., for nearly two decades, most recently serving as SVP of finance. He has also held operational responsibilities including leading Home Depot’s Home Services business unit as well as its retail operations in China. Previously, Bomar served as SVP and CFO of Deluxe Corporation.
Big Deal
Going deeper
"Hoping for a tariff refund? Trump officials say they are waiting for lower courts to provide instructions. ‘They created the situation’" is a Fortune article by Jason Ma.
More than $130 billion in revenue collected under the International Emergency Economic Powers Act tariffs is at stake, Ma writes. A New York Fed study found that U.S. consumers and companies have paid 90% of President Trump’s import taxes. Read more here.
Overheard
"In an AI-driven world of relentless change, the enduring winners won’t be the behemoths alone. They’ll include those nimble, highly specialized players that are adaptive enough to harness the AI basics built by others and, if necessary, can even pull off a business model pivot."
—Igor Pejic, an expert on technology-driven shifts in money and finance, writes in a Fortune opinion piece. He is the author of "Tech Money," a book that uncovers the new rules of investing in the technology age.
