In October 2025, we explored a pressing question for public works contractors: should post-contract award tariffs be reimbursable? The crux of that analysis was whether tariffs imposed after contract award constitute a tax under the Washington State Department of Transportation (WSDOT) Standard Specifications, triggering reimbursement under Section 1-07.1(5)B (“tax changes”).

Since then, a landmark Supreme Court ruling in Learning Resources, Inc. v. Trump has clarified the legal nature of tariffs in a way that could significantly affect this debate.

In Learning Resources, Inc. v. Trump, 607 U.S. (2026), the U.S. Supreme Court addressed whether the President had the authority under the International Emergency Economic Powers Act (IEEPA) to unilaterally impose broad tariffs on imports.