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Accounting Today
Accounting Today
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Tariff volatility continues to define global trade, influenced by geopolitical pressures, national security objectives, and broader use of executive authority under U.S. trade statutes.
In 2025, President Trump leveraged the International Emergency Economic Powers Act (IEEPA) to impose tariffs on issues ranging from immigration to political concerns. That legal framework changed on February 20, 2026, when the Supreme Court ruled that IEEPA does not authorize the President to impose tariffs.
The decision did not create automatic refunds, nor did it limit the government’s ability to pursue tariffs under alternative statutory authorities.
Instead, affected importers may pursue duty recovery through administrative and judicial processes. U.S. Customs and Border Protection (CBP) has proposed a new declaration-based refund process within the Automated Commercial Environment (ACE) system, although traditional mechanisms such as protests or litigation may still apply, depending on entry status and final implementation guidance.
On March 6, 2026, CBP disclosed in court filings that it is not currently able to comply with the Court of International Trade’s order to begin issuing refunds of IEEPA tariffs. According to CBP:
Calling it the largest customs refund event ever attempted, CBP stated that manually removing IEEPA duties and issuing refunds on an entry-by-entry basis would require millions of labor hours and extensive system updates, making immediate compliance impractical.
Instead, CBP is proposing a new automated refund process through ACE. Under this approach:
CBP estimates it will need at least 45 days to build this functionality.
Critically for importers, refunds will not be automatic. CBP has indicated that refund requests will be audited, and importers must be prepared to substantiate:
This development reinforces that refund recovery will depend on data quality, documentation discipline, and timing.
The IEEPA ruling did not mark a retreat from tariff enforcement. Shortly after the Supreme Court ruling, the administration invoked Section 122 of the Trade Act of 1974, imposing a temporary tariff of 10% for 150 days. Officials have indicated the rate could increase to 15% and announced that the U.S. Trade Representative will initiate new Section 301 investigations, which could result in additional tariffs based on origin or classification.
Even as one tariff authority is limited, others remain available, signaling continued tariff volatility. Meanwhile, geopolitical risks and disruptions to major shipping lanes in the Middle East add further uncertainty, accelerating the push for diversified sourcing and flexible logistics. Together, these dynamics highlight the need for disciplined compliance and integrated, data-driven trade and supply chain planning.
Tariff exposure will continue to fluctuate as enforcement tools, legal interpretations, and geopolitical pressures change. Now that the IEEPA tariffs have been ruled unconstitutional and implementation guidance remains uncertain, importers should take a measured but proactive approach:
The era of predictable global trade is over. Importers now face a narrow window to pursue potential IEEPA duty recovery while continuing to manage tariff volatility under other statutory authorities.
The Elliott Davis team can assist importers with:
For companies struggling to determine what applies to them or how to address these requirements at scale, timely support can improve recovery outcomes.
Reach out to the Elliott Davis Manufacturing and Distribution team to discuss practical steps to ready your organization for what lies ahead.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
Edit: Originally published on January 14, 2026. Updated to reflect recent developments.
Global trade and supply chain management have entered a new era marked by volatility, sweeping regulatory changes, and rapid technological disruption. Protectionist policies and escalating tariffs have added unprecedented complexity, forcing companies to rethink international trade strategies and adopt innovative, technology-driven solutions for resilience.
For brands and manufacturers, the priority is clear: build agile models that can withstand mounting geopolitical and compliance pressures.
Tariffs remain one of the most unpredictable variables in global trade, driven by international tensions, national security concerns, and executive actions under statutes such as:
That legal framework changed on February 20, 2026, when the Supreme Court ruled that IEEPA does not authorize the President to impose tariffs. As a result, tariffs enacted under IEEPA have been deemed unlawful.
The decision did not create automatic refunds, nor did it limit the government’s ability to pursue tariffs under alternative statutory authorities. Instead, it allows affected importers to seek duty recovery through administrative and judicial processes. U.S. Customs and Border Protection (CBP) has proposed a new declaration-based refund process within the Automated Commercial Environment (ACE) system, although traditional mechanisms such as protests or litigation may still apply, depending on entry status and final implementation guidance.
Modern supply chains were built on three assumptions: globalization, predictable trade routes, and stable regulatory frameworks. All three are now in flux due to:
Brands must rethink their fulfillment models, inventory strategies, and geographic footprint to stay competitive in an increasingly unpredictable environment.
Recent changes in Mexico and Canada have reduced the benefits of cross-border fulfillment. As a result, companies are:
For sectors like apparel that manage tens of thousands of product variations, these decisions are critical to maintaining agility amid tariff and de minimis changes.
Technology is redefining demand. Platforms like TikTok Shop and Shopify have empowered smaller brands to scale rapidly, sometimes selling out inventory overnight when content goes viral. In response, major retailers are acquiring these breakout brands, creating sudden surges that strain traditional supply chains.
AI-driven analytics and predictive tools are amplifying this trend, making real-time forecasting and flexible fulfillment increasingly important for brands to keep pace with unpredictable demand spikes.
Companies are increasingly turning to legal and financial tactics to reduce duty exposure and preserve liquidity. Tariff engineering, such as redesigning products or using different materials to qualify for lower duty rates, offers a way to minimize costs at the classification level.
Meanwhile, Foreign Trade Zones (FTZs) allow businesses to defer duty payments, improve cash flow, and even conduct manufacturing within trade zones to lower tariff obligations. Together, these approaches help businesses reinvest in growth initiatives rather than locking up capital in tariff payments.
The era of predictable global trade is over. Success now hinges on agility—leveraging technology, optimizing fulfillment, and engineering financial resilience. Companies that move quickly will be best positioned to weather the storm and emerge as a stronger competitor.
For more information on what importers should do now, read our related article on IEEPA tariff refunds.
Ready to adapt? Reach out to our Manufacturing and Distribution team to discuss supply chain strategies to prepare for the next disruption.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
After years of building a successful business, selling may be the next major milestone. However, transitioning ownership is rarely simple. What worked for previous leadership may not easily translate to a new buyer, and demonstrating the company’s profitability and future potential requires transparent financials, accurate reporting, and well-documented processes.
At this stage, many company leaders recognize the value of an outside perspective. Preparing for due diligence, identifying value drivers, and crafting a compelling growth narrative all benefit from experienced guidance. That’s where our team steps in. We help manufacturers strengthen their financial and operational foundation and elevate their business profile, enhancing valuation and positioning the company as a strategic, investor-ready opportunity.
When buyers evaluate a business, the first impression often comes from the financials. Clean, current statements, accurate tax filings, and a forecast that supports your valuation are essential. Strong, transparent records build confidence and support your valuation, while gaps or inconsistencies can raise doubts and stall or derail negotiations before they start.
Beyond the numbers, buyers look for operational strength. Addressing inefficiencies and modernizing systems signals stability and scalability. Reliable equipment, streamlined processes, and solid customer and supplier relationships all point to a business that can sustain profitability and continuity after the sale.
Legal and strategic details matter just as much. Contracts, leases, and intellectual property protections should be in order. Retaining key employees and aligning stakeholders on succession plans reduces risk for the buyer. Engaging a team of advisors early that includes tax, legal, and wealth planning can help you model the after-tax impact and choose the right sale strategy.
When it came time to sell a thriving business, the company’s leadership quickly realized that a lack of financial structure was a major obstacle. They had been operating through a single bank account, with no visibility into profitability by segment. Without internal financial leadership and relying solely on a CPA for tax filings, they lacked the insight needed to assess their financial health. When they approached an investment bank to facilitate the sale, they were told to clean up their financials before going to market.
The investment bank referred the company to Elliott Davis for a full financial transformation. Our team brought together specialists in finance transformation, accounting, and transaction advisory, all working together under a single point of contact to facilitate the process. We restructured the accounting system by segment, established month-end close processes, and built a comprehensive reporting package that included multi-year financials and key performance indicators (KPIs). Additionally, we conducted sell-side due diligence, standardized revenue and cost of goods sold (COGS), and identified adjustments to reflect the company’s true earnings potential.
To position the business for sale, we benchmarked profitability, highlighted high-margin areas attractive to private equity, and integrated KPIs into reporting to demonstrate growth potential. Throughout the engagement, we provided hands-on support and strategic guidance. After months of focused effort, the company moved from a financial blind spot to a structured, transparent, and highly marketable business, ready for sale.
For a checklist on what to do before you go to market, check out our related article.
At Elliott Davis, we help business owners prepare for a successful exit well before the sale begins by cleaning up financials, planning for taxes, targeting buyers, and building a transition strategy. Our team identifies risks, recommends value-driving initiatives, aligns the deal with your financial goals, and equips you to handle buyer objections and diligence.
Not sure how your entity type impacts a sale? Understanding the tax consequences of a sale is key to structuring the deal correctly. We break it down here: C corporation | S corporation | partnership
Selling your business is a once-in-a-lifetime decision. Let us help you do it right with a plan built for success.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
