ANALYSIS: Tariff Headwinds for Companies Will Continue in 2026

Tariffs regularly impact company operations and supply chains—but the nature of President Donald Trump’s tariffs and the numerous delays and revisions to their implementation have sparked widespread uncertainty. Companies have adapted in various ways to the tariffs, including updating force majeure and change-of-law contract clauses and proactively assessing their suppliers to renegotiate contracts. The uncertainty has also been reflected in companies’ 8-K filings this year.

Trump used a 1970s law never before used to levy tariffs as the basis for his authority to levy them. As a result, they’ve been the subject of litigation that the US Supreme Court agreed to hear on an expedited basis.

No matter which way the court rules, tariff uncertainty will remain high next year. Companies are likely to continue facing substantial operational challenges, including contract complexity, as a result of tariffs, which will be reflected in 8-K filings next year.

New Tariffs Have Broader Impacts

The scope and impact of tariffs in Trump’s first term were comparatively limited. Those tariffs covered a narrow range of products, and Trump used well-established legal bases to implement them.

Trump announced safeguard tariffs in 2018 on solar panels and washing machines under section 201 of the Trade Act (codified at 19 U.S.C. § 2253). Importantly, section 201 provisions expressly allow the levying of tariffs. Such safeguard actions are temporary and targeted, limiting their impact both on individual businesses and the economy as a whole.

Also in his first term, Trump announced tariffs on steel, aluminum, cars, uranium, titanium sponge, and transformers. He used a national security provision in section 232 of the Trade Expansion Act that allows tariffs on imports of goods that are a threat to national security.

Trump’s second-term tariff program is much broader than his tariff actions in his first term. Second-term tariffs are being applied—using a novel legal regime—to almost everything from almost everywhere. Trump used the International Emergency Economic Powers Act (IEEPA), to invoke, for example, a blanket 10% tariff on all imports, across products ranging from steel to movies and pharmaceuticals.

These so-called reciprocal tariffs under IEEPA will create an environment of uncertainty for companies due to supply chain disruptions and altered spending plans for both businesses and consumers trying to navigate sweeping tariffs.

Legal Challenges to Tariffs

Unlike other tariff bases, IEEPA doesn’t make any reference to tariffs, and its use to levy tariffs has been subject to litigation to determine whether tariffs using IEEPA are legal. As a result, Trump’s 2025 tariffs are facing many legal challenges. Even if the challengers were to prevail in every case, companies would likely not see much relief for quite some time after the rulings.

The most prominent legal challenge to the tariffs comes from Learning Resources v. Trump. The Supreme Court heard oral arguments for the case on Nov. 5 after agreeing to hear it on an expedited schedule. The justices appeared to agree with the petitioners—a family-owned business that creates and sells educational toys and products for children—that the IEEPA doesn’t authorize Trump to impose tariffs.

If the Supreme Court allows reciprocal tariffs to remain in place, companies will need to adjust their operations to cope with the resulting supply chain disruptions.

Companies Bear the Brunt of Tariff Costs

Regardless of how the courts resolve the legal challenges to Trump’s tariff measures, it’s very likely that rapid changes to tariff measures will continue into 2026.

SEC registrants are required to file a Form 8-K to disclose material corporate events or changes. From Jan. 20 to Oct. 31, 414 company filings mentioned tariffs as a material event or change. (Duplicates have been removed from the search results.)

Almost immediately after Trump announced reciprocal tariffs on over 100 countries on April 2—"Liberation Day"—the number of 8-K filings mentioning tariffs shot up.

Since then, the number of Form 8-K filings mentioning tariffs has remained considerably higher than during Trump’s first term and under the Biden administration.

Company 8-K disclosures on Trump’s 2025 tariffs often mirror concerns about higher prices, increased compliance costs, and higher risk of default on debt. These types of material changes will remain heightened if tariff uncertainty continues.

Even if the Supreme Court rules in favor of the petitioners in Learning Resources and the tariffs get revoked, it may not be the salve companies need. There will likely be delays or complications relating to refunds—if they’re issued at all. Importers will need to have their right to claim a refund preserved, and Customs and Border Protection will need to evaluate all such claims before determining which, if any, are eligible.

Trump also has a tariff toolbox at his disposal to levy other types of tariffs. If the high court rules that IEEPA doesn’t authorize Trump to impose tariffs, he will likely rely on another authority to impose tariffs, like sections 201 and 301 of the Trade Act. Thus, even in the absence of IEEPA tariffs, tariff measures will continue to materially impact businesses in 2026.

Access additional analyses from our Bloomberg Law 2026 series here, covering trends in Litigation, Transactions & Contracts, Artificial Intelligence, Regulatory & Compliance, and the Practice of Law.

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