Three Tariff Policy Shifts, One Year: What Supply Chain Professionals Need to Know
Last Updated August 14, 2026
A tariff is a tax imposed on imported goods. While most people think about tariffs when headlines mention rising prices, professionals responsible for sourcing materials, parts or finished products also need to consider how tariffs affect supplier costs and sourcing decisions. Michigan State University’s online Supply Chain Management certificate programs provide an opportunity to build knowledge in sourcing, procurement and supply chain operations.
In 2026, several U.S. trade policy developments have shown how quickly those calculations can change. A Supreme Court ruling addressed the president’s authority to impose tariffs under one law, a new tariff action involving Canada invoked a provision of a 1930 law, and new pharmaceutical tariffs added considerations for companies evaluating global manufacturing and sourcing strategies.
Here are three developments worth understanding and what they can mean for supply chain professionals.
A Major Tariff Policy Shift
In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. The decision addressed tariffs imposed under that authority on imports from numerous trading partners.
The administration subsequently established a temporary 10% import surcharge under Section 122 of the Trade Act of 1974. The surcharge was set to apply for 150 days beginning February 24, 2026, subject to specified exceptions.
For supply chain professionals, changes in tariff authority can alter the cost assumptions used to evaluate suppliers, sourcing locations and total sourcing costs.
Canada: Another Tariff Authority Enters the Picture
On July 20, 2026, the U.S. announced additional 50% tariffs on nearly $20 billion in imports from Canada under Section 338 of the Tariff Act of 1930. The tariffs were scheduled to take effect 30 days after the announcement.
The action covers certain Canadian motor vehicles, alcoholic beverages and dairy products. For companies evaluating North American sourcing, it reinforces the need to monitor trade policy even among established trading partners and consider tariff exposure alongside supplier, transportation and production costs.
Pharmaceuticals Add Another Planning Challenge
An April 2026 White House proclamation established tariffs on specified patented pharmaceuticals and associated pharmaceutical ingredients. The proclamation cited FDA data showing that approximately 53% of patented pharmaceutical products distributed domestically are produced outside the United States, while approximately 15% of patented active pharmaceutical ingredients, measured by volume, are produced domestically.
The stated tariff is 100% for specified products, with different rates and exemptions based on factors including onshoring plans, trade agreements and other arrangements. Companies with approved onshoring plans are subject to a stated 20% rate, scheduled to increase to 100% on April 2, 2030.
As of the proclamation, generic pharmaceuticals, biosimilars and their associated ingredients were not subject to the Section 232 tariffs, although the administration said the issue would be reassessed.
For organizations dependent on international pharmaceutical manufacturing, the policy highlights the importance of understanding product origins, supplier concentration and sourcing flexibility.
What Tariff Changes Mean for Supply Chain Professionals
Tariff changes can affect far more than trade compliance. They can influence budgets, supplier negotiations, inventory, production planning and procurement strategy, while changing the assumptions behind sourcing decisions. A supplier strategy that works under one tariff structure may not work under another, and contracts or supplier networks may need to be reassessed as conditions change.
For professionals in procurement, operations, logistics and supply chain management, three skills are particularly valuable: evaluating sourcing options based on total cost, managing supplier negotiations as cost structures shift, and maintaining a supplier base that provides flexibility. These areas align with Michigan State University’s online Supply Chain Management certificates, including its Strategic Sourcing program, which addresses sourcing strategies, supplier evaluation and supply base management.
Building Supply Chain Skills Through MSU
For professionals looking to strengthen their ability to navigate changing sourcing and procurement conditions, Michigan State University’s online Supply Chain Management certificate programs provide an opportunity to build practical knowledge while earning a university-issued credential. Options span global supply chain management, strategic sourcing and procurement, allowing professionals to pursue an area that aligns with their responsibilities and career goals.
The 100% online format gives working professionals an opportunity to pursue focused education alongside their existing responsibilities. For those managing sourcing decisions, supplier relationships or broader supply chain strategy, targeted professional development can provide a structured way to strengthen relevant knowledge and decision-making skills.
Making Better Decisions When Conditions Change
Trade policy can change the assumptions behind sourcing and procurement decisions. Recent tariff developments show why supply chain professionals need to evaluate external changes alongside supplier costs, contracts and network strategy.
Supply chain professionals cannot predict every policy change, but they can develop the skills to assess its potential impact and make informed decisions.
Explore Michigan State University’s online Supply Chain Management certificate programs to learn more about opportunities to develop supply chain and procurement knowledge.
Sources Referenced
U.S. Supreme Court: Learning Resources, Inc. v. Trump, Nos. 24-1287 and 25-250
Supreme Court decision addressing whether IEEPA authorizes the president to impose tariffs, February 20, 2026. https://www.supremecourt.gov
The White House: Temporary Import Surcharge
Presidential proclamation establishing the temporary 10% import surcharge under Section 122 of the Trade Act of 1974.
U.S. Trade Representative: Section 338 Tariffs on Canada
July 20, 2026 announcement regarding the additional 50% tariffs on certain Canadian imports.
The White House: Pharmaceuticals and Pharmaceutical Ingredients
April 2, 2026 proclamation concerning tariffs on specified patented pharmaceuticals and associated pharmaceutical ingredients.
The White House: Pharmaceutical Tariff Fact Sheet
Overview of the pharmaceutical tariff policy, including tariff rates and onshoring provisions.
