On February 20, 2026, the Supreme Court of the United States ruled against President Donald Trump saying he lacks authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping, open-ended tariffs, delivering a significant shift in U.S. trade policy. The ruling immediately invalidated previously implemented “universal and reciprocal” tariffs, widely reported in the 10–25% range, as well as country-specific “fentanyl” tariffs targeting imports from Canada, Mexico and China.

“The Supreme Court decision underscores the importance of a transparent and targeted approach to U.S. trade policy,” Tony Fragnito, INDA President & CEO says in response to the action. “Predictable and proportionate trade measures provide stability necessary for continued investment and innovation across U.S. manufacturing. A balanced trade approach that strengthens manufacturing competitiveness and fosters international cooperation will help sustain the growth and resilience of the nonwovens industry and the broader U.S. economy.”

However, the White House moved quickly following the ruling. Within hours, President Trump invoked Section 122 of the Trade Act of 1974 to implement a new global tariff, initially set at 10% and later increased to 15%. These measures expire after 150 days unless Congress votes to extend them introducing new planning challenges. Long-term supply agreements, resin contracts and capital equipment purchases may now require contingency pricing and accelerated decision-making within the 150-day window.

For nonwovens manufacturers, these actions could affect cost structures for: polypropylene and polyester feedstocks, specialty chemicals and additives, converting and extrusion equipment and imported finished hygiene and medical products such as baby and adult diapers and nonwoven-based wipes.