In a 6-3 decision that reshapes the limits of executive trade authority, the U.S. Supreme Court ruled that President Donald Trump exceeded federal law when he imposed sweeping “emergency” tariffs under the International Emergency Economic Powers Act (IEEPA). The Court determined that IEEPA does not grant the president unilateral authority to impose broad-based tariffs.

The ruling invalidates the administration’s across-the-board emergency tariffs, including the baseline 10% global duties that had applied to a wide range of imported goods. For the PHCP-PVF (plumbing, heating, cooling, piping, valves and fittings industry, which relies heavily on imported components, castings, steel, aluminum, electronics and finished equipment, the decision represents a legal milestone, but not necessarily an economic reset.

Within hours of the ruling, Trump announced a new 10% global tariff under Section 122 of the Trade Act of 1974, signaling that tariff policy remains central to the administration’s trade agenda despite the Court’s decision.

Section 122 caps the maximum tariff rate at 15% and only for 150 days, but can be done without congressional approval.

Industry response

The Supreme Court ruling was specific to Section 122, and did not pertain to Section 232 which relates to the steel, aluminum and copper tariffs that are more specific to plumbing and HVAC.

According to Vice President of Legislative Affairs for PHCC—National Association, Mark Valentini, “For now, in light of the Court's ruling and the administration's reaction, we don't expect any immediate impacts to our industry other than the response we have seen in the markets. Perhaps when the dust settles a bit, we can get a clearer picture.”

Last year, when the President originally announced his plans to enact tariffs, the effects were not seen immediately. “ We didn't see prices increase as a result of that announcement until mid-spring as section 232 was getting ready to kick in, first with steel, aluminum and derivatives which began in June (50%, 25% for UK-sourced commodities), with contractors really starting to feel the pinch in the run-up to when copper tariffs kicked in August 1 (again, 50% and 25% for UK-sourced commodities). So, the lag time between the tariff announcement in response to SCOTUS and implementation should be taken into consideration this time around.”

The impact of this decision, too, may take time to show in the industry. “Because 232 was not impacted by the Court's ruling, we don't anticipate any immediate impacts on that front but again, let's wait until the dust settles.”

Refund questions 

If emergency tariffs are ultimately invalidated and refunds issued, the headline may suggest broad financial relief. However, plumbing contractors and specifying engineers should temper expectations. The refund pathway is technical, documentation-heavy and largely confined to the business that legally paid the duty at import.

Contractors rarely receive direct tariff refunds, as tariffs are collected by U.S. customs and Border Protection from the importer of record (the manufacturer, distributor or third-party importer).

Distributors may or may not retroactively adjust pricing, but nothing is certain as of now. Rather than relying on potential refund recovery, contractors may want to focus on clear documentation of tariff-related line items in supplier invoices, contract language addressing future trade reversals and maintaining communications with distributors regarding pricing adjustments.

With the PHCP-PVF channel already balancing higher interest rates, moderated construction activity and inventory discipline, tariff volatility adds another layer of planning complexity.

Legal analysts suggest the Supreme Court’s decision reinforces constitutional guardrails on executive trade powers. For the plumbing and mechanical industry, the broader takeaway may be that while one tariff mechanism has been curtailed, trade policy uncertainty remains a defining factor in 2026.

Plumbing & Mechanical will continue to monitor developments, including refund guidance and potential impacts on plumbing, hydronics and HVACR products.