Tariff Turbulence Continues: What the Latest Trade Changes Mean for Supply Chains

When we last looked at the tariff environment, businesses were already dealing with shifting U.S. trade policy and geopolitical instability around the Strait of Hormuz.

Since then, things have changed again.

New tariff actions, legal rulings, and ongoing geopolitical tension are reinforcing a key reality for supply chain leaders: tariff volatility is not going away anytime soon.

Instead, companies should expect a longer period where trade policy, geopolitics, energy markets, and sourcing decisions are all tightly connected.

What Has Changed Since Our Last Update?

The July 16, 2026 tariff tracker from the International Warehouse Logistics Association (IWLA) shows how quickly U.S. trade policy has been evolving.

  • Key developments:
    The U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not allow the president to impose tariffs
  • This removed the legal basis for several earlier tariff actions
  • The administration shifted to other tools, including Sections 122, 232, 301, and
    338

A temporary 10% global import surcharge was introduced under Section 122 in February 2026 and later expired in July.

Section 301 Tariffs Expand

On July 23, the U.S. Trade Representative announced new Section 301 tariffs affecting 60 economies, tied to forced labor investigations in global supply chains.

  • Most new duties range from 10% to 12.5%
  • Rates vary by country and trade agreements

Why this matters:

This shows how quickly one tariff program can be replaced or layered with another.

Even when one policy expires, tariff exposure often remains.

Canada Becomes a New Focus

Trade tensions with Canada have also increased.

The U.S. announced 50% tariffs on certain Canadian goods under Section 338 of the Tariff Act of 1930, citing discriminatory treatment of U.S. exports.

  • Effective date: August 19, 2026
  • Some exemptions apply

Why this matters for North America

U.S., Canada, and Mexico supply chains are deeply integrated. Even targeted tariffs can ripple across:

  • Sourcing costs
  • Supplier relationships
  • Transportation routes
  • Inventory planning
  • End-customer pricing

Tariffs Are Only Part of the Risk

Geopolitical risk remains a major factor.

The Strait of Hormuz

This key energy corridor continues to be a source of uncertainty.

  • Roughly 20% of global petroleum liquids pass through it
  • Disruptions can quickly affect global energy prices

Even if goods don’t move through the region, impacts can still reach global supply chains through:

  • Higher fuel and transportation costs
  • Increased insurance premiums
  • Longer shipping routes
  • Delays in transit
  • Higher domestic logistics costs

A regional disruption can ultimately affect inventory costs in warehouses far away.

Adaptability Is the New Advantage

Tariffs will continue to shift. Trade policy will evolve. Geopolitical risks will persist.

Businesses may not be able to control these forces, but they can control how prepared their supply chains are to respond.

At Distribution Alternatives, we monitor the trends shaping fulfillment, warehousing, and distribution so our clients can respond with confidence.

In today’s environment, flexibility is no longer optional. It is a core part of supply chain
strategy.

Looking to build more flexibility into your fulfillment network?

Talk with DA about designing a distribution strategy that can adapt as trade conditions continue to evolve.

Sources & Further Reading