Supply Chain News Roundup: Supreme Court to Debate Tariff Policy

On Wednesday, the U.S. Supreme Court is scheduled to review the legality of President Donald Trump’s use of emergency powers to impose sweeping tariffs on countries all around the world.

The outcome, no matter the decision, will have equally sweeping impacts: on consumers, manufacturers of all sizes, buying companies, logistics and shipping, the countries themselves as well as the world economy.

The New York Times reports: “Experts say the case is a tossup that poses difficult legal and political considerations for the justices, made all the more tense by Trump’s efforts to personalize the dispute.”

In imposing the tariffs, Trump used the International Emergency Economic Powers Act (IEEPA), which “provides the President broad authority to regulate a variety of economic transactions following a declaration of national emergency,” according to a report on congress.gov.

It continues: “Changes in the use of IEEPA powers since the act’s enactment in 1977, including its use to impose tariffs on imports from almost all countries in 2025, have caused some members of Congress and policy analysts to question whether the statute’s oversight provisions are robust enough given the sweeping economic powers it confers upon the President during a declared emergency.”

It is generally thought that Trump will consider defeat a personal blow. The Supreme Court, however, is comprised of nine justices, six of whom are considered conservative and who typically side with Trump’s view of presidential authority.

Still, the outcome is anyone’s guess. Harvard Law School professor Jack Goldsmith told the Times that, in this case, the legal issues are closely contested and that presidential power could come up as part of the debate. There are other arguments that could be brought up, including who is really paying for the tariffs — the countries that have been levied duties or the American public.

The Supreme Court is scheduled to hear the case at 10 a.m. ET Wednesday.

Kenvue/Kimberly-Clark Acquisition Announced

Consumer products company Kimberly-Clark Corporation has agreed to buy Kenvue Inc., the embattled Johnson & Johnson consumer products spinoff, for US$48.7 billion, the two companies announced Monday.

“This transaction brings together two iconic American companies to create a combined portfolio of complementary products, including 10 billion-dollar brands, that touch nearly half the global population through every stage of life,” a Kimberly-Clark press release states.

Kimberly-Clark CEO Mike Hsu said, “Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster. We have built the foundation, and this transaction is a powerful next step in our journey.”

Kimberly-Clark carefully considered risks as well as opportunities in evaluating the transaction, according to the press release. Kenvue, the maker of such products as Neutrogena, Zyrtec, Band-Aid and Tylenol, has faced backlash after Trump stated in September that the U.S. Food & Drug Administration (FDA) believes that, when taken during pregnancy, acetaminophen, the active ingredient in Tylenol, contributes to a risk of autism.

“Shares of Kenvue have plummeted this year as U.S. health officials have claimed that acetaminophen — the active ingredient in Tylenol — was linked to autism,” The New York Times reported. “In September, President Trump said that pregnant women should ‘fight like hell not to take it.’ ”

There has been much debate about the claim. “It is important to note that while an association between acetaminophen and neurological conditions has been described in many studies, a causal relationship has not been established and there are contrary studies in the scientific literature,” the FDA said in a statement.

On Monday, after the deal was announced, Kenvue’s stock rebounded strongly, and as of midday Tuesday, share prices were up 11.6 percent over the past five days. Kimberly-Clark’s share price fell after the announcement and dropped slightly on Tuesday.

Expected to close in the second half of 2026, the deal is “subject to the receipt of Kenvue and Kimberly-Clark shareholder approvals, regulatory approvals and satisfaction of other customary closing conditions,” the press release states.

U.S. and China Reach Deal

In other trade-related news, the U.S. and China have reached a trade deal that offers benefits and opportunities for both countries. According to a White House fact sheet, details include:

• China will resume buying U.S. soybeans
• China will halt the flow of ingredients to make fentanyl to the U.S.
• The Asian country will eliminate current and proposed export controls on rare earth elements
• The U.S. “will lower the tariffs on Chinese imports imposed to curb fentanyl flows by removing 10 percentage points of the cumulative rate, effective November 10, 2025, and will maintain its suspension of heightened reciprocal tariffs on Chinese imports until November 10, 2026”
• China will end retaliation against U.S. semiconductor manufacturers and other major U.S. companies.

Trump called the meeting “amazing,” and China’s president Xi Jinping said the two countries should continue lines of communication to avoid retaliatory issues. The deal will be renegotiated every year, Trump said.

(Photo credit: Getty Images/P_Wei)