Tariff ruling update: What you should know

By Dani Sheehan. 

Tariffs remain part of the operating environment, even as the legal justification behind them evolves. What does this mean for your business? 

In a recent 6-3 decision, the Supreme Court of the United States ruled that the president exceeded his authority by imposing sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA). At the time this was written, the Court found that while the law allows economic action during national emergencies, it does not explicitly authorize broad tariff programs which require Congressional approval under the Constitution. 

Shortly after the ruling, the administration clarified that tariffs were not eliminated, only the use of IEEPA for that purpose. Existing tariffs remain in place, and a new 10% global tariff was immediately announced under Section 122 of the Trade Act of 1974.  

For the roofing industry, we want to explore how trade policy uncertainty amidst this latest ruling continues to shape pricing, contracts and planning decisions as we move through 2026. 

How this affects the roofing industry 

The Supreme Court decision narrowed the legal pathway used to justify certain tariffs, but it did not remove tariff authority altogether. We asked Trent Cotney of Adams and Reese LLP, how this might affect the industry in the coming months. He replied, sharing: 

The Supreme Court’s recent ruling was not unanticipated and impacts the current tariff structure under the International Emergency Economic Powers Act (IEEPA). Roofing contractors should recognize that the Administration will propose alternative means to support a tariff program through sections contained in the Trade Act of 1974, Trade Expansion Act of 1962 or Tariff Act of 1930. The ruling does inject uncertainty into the extent and amount of tariffs and the impact of tariffs that were already assessed under the IEEPA. Regardless, from a legal perspective, we encourage contractors to include price acceleration provisions in their contract to account for tariff activity. 

Construction is especially sensitive to trade policy because so many commonly used materials rely on imported inputs. The rising uncertainty in the wake of this ruling requires us to be cautious about assuming near-term price relief. Even if certain tariffs are refunded, the timeline is vague, and pricing rarely comes down quickly, especially once inventory, supplier contracts and freight costs are already set. 

Why this moment still matters 

While continued tariff activity may feel like more of the same, there is constructive movement for the roofing industry: 

• Trade policy is now more clearly tied to defined statutory authority, rather than emergency powers 
• That clarity can lead to more predictable decision-making over time 
• Contractors who understand where tariffs can and cannot come from are better positioned to manage risk 

What you can do 

1 – Build protection into contracts  

Proactive contract language is one of the most effective tools contractors can have. Including price escalation or acceleration clauses allow contractors to adjust pricing when material costs change due to tariffs or other external factors, helping protect margins on longer-term projects. 

2 – Continue planning for cost variability 

Tariffs are only one factor influencing roofing costs, alongside labor availability, freight, insurance and compliance requirements. Smart contractors will continue to carry contingencies in bids, lock pricing where possible and avoid over-committing on long lead-time materials without flexibility. 

3 – Communicate clearly with customers 

This ruling provides a helpful framework for customer conversations. You can explain that: 

• Pricing volatility is driven by global trade dynamics 
• Legal clarity helps planning but there is still risk 
• Your role includes managing uncertainty on behalf of your customer