Section 122 Tariffs Struck Down by U.S. Court of International Trade

What Importers Should Know

On May 7, 2026, the U.S. Court of International Trade issued an important decision regarding Section 122 tariffs, ruling in a 2-1 split decision that the tariffs are unlawful. For importers, customs brokers, freight forwarders, and businesses involved in international trade, this ruling is significant. However, it is equally important to understand what the decision does and does not do at this stage.

While the court found the Section 122 tariffs unlawful, the ruling does not automatically remove these tariffs for every importer, nor does it immediately create a universal refund process for all businesses that may have paid them.

What the Court Decided

The U.S. Court of International Trade reviewed whether the President’s proclamation imposing Section 122 tariffs—the recent 10% tariff on most imports—met the legal requirements established under Section 122. According to the analysis provided by NCBFAA Customs Counsel and Legislative Advisor of Sandler, Travis & Rosenberg, P.A., the majority held that the President failed to identify balance-of-payments deficits within the meaning of Section 122 as it was enacted in 1974.

In its reasoning, the court noted that the proclamation identified several economic concerns, including a large trade deficit, a current account deficit, a negative net international investment position, and deficits on the balance of primary and secondary income. However, the majority concluded that those factors did not equate to a “balance-of-payments” deficit as required under Section 122.

This distinction matters because the court was not simply reviewing whether the United States faces economic or trade-related challenges. Instead, it was examining whether the specific legal basis used to impose the tariffs matched the authority granted by Congress under Section 122.

The Ruling Is Not Universal

Although the majority ruled that the Section 122 tariffs are unlawful, the court did not issue a universal injunction. This means the ruling does not automatically apply to all importers.

Instead, the court issued a permanent injunction only for the named plaintiffs who are importers, including the State of Washington in its capacity as an importer. 

Why Refunds May Take Time

The majority also acknowledged the practical challenges that can arise when tariffs are found to be unlawful. The court referenced prior experience with tariff refunds, noting that there may be significant delays between the time tariffs are first held unlawful and the time refunds are actually issued.

This is a key point for importers. Even when a court decision appears favorable, the administrative process that follows can be complex. Customs and Border Protection guidance, appeal activity, injunctions, protests, and other administrative procedures may all affect how refund opportunities develop.

At this time, importers should watch for official guidance before taking action. Any potential refund strategy should be evaluated carefully, especially while the government’s expected appeal remains pending.

What Happens Next with the Trump Tariffs?

The federal government is expected to quickly appeal the decision and request a stay pending appeal. If a stay is granted, the practical effects of the ruling could be paused while the case continues through the appeals process.

In the meantime, Sheltered International will be watching for additional developments from the Court of International Trade, the appellate courts, and Customs and Border Protection. There may also be opportunities for affected importers to obtain injunctions or preserve potential refunds through available procedures, depending on how the case develops. However, those possibilities remain uncertain at this stage.

For Sheltered International clients, the most important takeaway is that no immediate action is required at this time. The Section 122 decision is a major development, but its current effect is limited, and further legal and administrative guidance is expected.

We are actively monitoring the situation for all clients and will continue to evaluate the impact and communicate any necessary next steps.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

IEEPA Duty Refunds Update: What SiShips Clients Need to Know

The IEEPA duty refund process is now underway, and Sheltered International is actively processing eligible refund submissions on behalf of our clients.

U.S. Customs and Border Protection has launched a new refund process through CAPE, the Consolidated Administration and Processing of Entries system, within the ACE Secure Data Portal. Beginning April 20, 2026, importers and authorized customs brokers can submit Phase 1 refund requests for eligible duties paid under the International Emergency Economic Powers Act, commonly referred to as IEEPA.

For Sheltered International clients, the most important update is simple: we are handling the refund submission process for eligible entries we filed. The only action required from clients is to make sure they have an active ACE Portal account and that their refund banking information is properly set up. You can access your account or create a new account HERE.

What Are IEEPA Duty Refunds?

IEEPA duties were imposed under the International Emergency Economic Powers Act. Following recent court action, CBP created a formal process to review and refund eligible IEEPA-related duties. These refunds are being handled through CAPE, a dedicated process within ACE for IEEPA refund claims. 

The refund process is being rolled out in phases. Phase 1 generally focuses on certain unliquidated entries and recently liquidated entries. Some more complex entries may be addressed later depending on their status, including entries tied to protests, reconciliation, drawback, review, suspension, or other special handling.

SiShips Is Processing Eligible Refunds for Clients

As your freight forwarder and customs broker, Sheltered International is reviewing eligible entry data and preparing CAPE refund submissions where applicable. This means our clients do not need to identify every qualifying entry or prepare the CAPE filing themselves for entries handled by Sheltered International.

Our team is managing the customs side of the process, including reviewing entry records, preparing the required CAPE Declaration files, and submitting eligible claims through ACE. This helps ensure the process is handled accurately and efficiently, while reducing the administrative burden on importers.

The Only Action Clients Need to Take

While Sheltered International can process eligible refund submissions, CBP must have valid refund banking information on file in ACE before refunds can be issued.

Clients should log into or create their ACE Secure Data Portal account and enroll in ACH refunds. This is important because refund banking information is separate from any banking information used to pay duties, taxes, and fees. In other words, even if your company already pays duties electronically, you may still need to add or confirm banking details specifically for refunds.

Clients should take the following steps:

1. Create or log into your ACE Secure Data Portal account.
2. Confirm your importer account is active.
3. Add or update ACH refund banking information.
4. Make sure the banking information is designated for refunds.
5. Notify your Sheltered International representative once this step is complete.

Without this ACH refund setup, CBP may not be able to issue payment, even if the refund submission itself has been properly filed.

How Long Will Refunds Take?

CBP has indicated that valid IEEPA refunds will generally be issued within 60 to 90 days after CAPE Declaration acceptance, unless additional review is required.

Timing may vary based on entry status, CBP review, liquidation status, and whether the importer’s ACE refund banking information is complete. Missing or incorrect banking information can delay payment.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Image courtesy of Tyler Casey / Unsplash

What International Shippers Need to Know

On March 6, 2026, U.S. Customs and Border Protection (CBP) informed the Court of International Trade (CIT) that while they are not yet ready to process the court-ordered IEEPA tariff refunds, they are actively building the necessary infrastructure within the Automated Commercial Environment (ACE).

Following a Supreme Court decision striking down the use of IEEPA tariffs, the CIT ordered CBP to liquidate or reliquidate affected entries without those duties.

Because there are over 53 million separate entries eligible for refunds, CBP is developing a new “streamline” functionality in ACE. Instead of issuing millions of individual checks, this system will consolidate refunds and interest payments by importer to speed up the process.

The Proposed Refund Process

CBP expects the new ACE functionality to be programmed within the next 45 days, though the full refund cycle may take several months. Once live, the process is expected to follow these steps:

• Importer Declaration: The importer files a declaration in ACE listing the entries where IEEPA duties were paid.
• Validation & Calculation: ACE automatically validates the entries and re-calculates the duty owed (plus interest) without the IEEPA tariffs.
• Verification: CBP verifies the declaration and processes the refund.
• Liquidation: ACE automatically finalizes (liquidates or reliquidates) the entries.
• Payment: The Department of the Treasury issues the refund electronically.

What This Means For Your Tariff Refunds

While the CIT has ordered these refunds, the “legal, technical, and operational” requirements mean it will take time for the money to reach your accounts. The NCBFAA and legal counsel are continuing to monitor CBP’s progress and the administration’s response to the court’s decision.

Sheltered International will continue to track these developments closely to ensure our clients are prepared as soon as the ACE portal is ready for declarations.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

How Sheltered International is Integrating Google Gemini

Image courtesy of Daniel Miksha

And Why It’s a Game-Changer for Freight Forwarders

Artificial intelligence is no longer a futuristic experiment for tech giants. Today, small businesses are beginning to harness powerful AI tools to streamline operations, reduce manual workloads, and increase efficiency. One of the most promising new tools leading this shift is Google Gemini.

Here at Sheltered International, we are proud to be on the forefront of adopting cutting-edge AI systems. Unlike early-generation AI systems that focused primarily on text generation, Gemini represents a major leap forward. Developed by Google, Gemini is a multimodal AI model capable of processing text, images, and complex documents with remarkable precision. For document-heavy industries, like freight forwarding, that capability is proving transformative.

What Makes Google Gemini Different?

Image courtesy of Charlotte Badran

Gemini stands out because of its advanced computer vision capabilities. The models are considered state-of-the-art when it comes to analyzing images and documents in granular detail. That means they interpret complex PDFs, scanned invoices, and unstructured documents with context and structure.

For startups and small operations, this opens the door to automating processes that were previously too nuanced for AI systems to handle reliably.

Gemini can be fine-tuned for specific business workflows, allowing companies to train the model to recognize industry terminology, formatting quirks, and regulatory requirements unique to their sector. This customization is what turns a powerful AI model into a true operational tool.

The Challenge: Manual Customs Documentation

As many readers are aware, international trade is document-intensive. When a shipment arrives, customs brokers are responsible for verifying commercial invoice data and ensuring that it is properly classified using the correct Harmonized Tariff (HTS) code.

In many cases, those invoices arrive as lengthy, unstructured PDFs. Extracting relevant data often requires hours of manual scanning, reformatting, and validation before the information can be entered into internal systems or spreadsheets.

For a small team handling high volumes of imports, this manual workflow becomes a significant operational bottleneck. The process is detailed, compliance-driven, and leaves little room for error.

How Sheltered International Is Using Gemini

With recent advancements and the release of Gemini 3 our team saw an opportunity to streamline the process of forms and other imports related tasks.

Here’s how our workflow now looks:

1. A shipment arrives with a commercial invoice, often in PDF form.
2. The fine-tuned Gemini model extracts relevant invoice data.
3. The model validates and reformats that data into an Excel spreadsheet.
4. Employees review the output before final customs classification.

“What the AI can do is just give us a huge leap forward before the customs broker comes in to ensure everything is classified correctly,” said founder Andrew Ciccarone in an interview with Inc.

For a small operation navigating the complexity of international trade documentation, Gemini has streamlined what used to be a painfully manual process. Instead of hours spent combing through dense documents, the team now receives a structured, organized first pass generated by AI.

Artificial Intelligence with Human Oversight

It’s important to note that Sheltered International isn’t handing the entire process over to AI. Employees still verify the output to ensure accuracy and compliance.

Ciccarone acknowledges that time savings are not yet dramatic because human review remains essential. However, as the fine-tuned Gemini model continues to improve, he expects productivity gains to increase significantly.

Why This Matters for Small Businesses

Google Gemini is emerging not just as a conversational AI tool, but as a serious operational asset. Its ability to analyze complex documents with precision is already reshaping workflows for forward-thinking startups.

The integration of Gemini represents a strategic move for us toward intelligent automation, one that enhances productivity while maintaining human oversight and compliance accuracy.

As AI models continue to evolve, small businesses that adopt and fine-tune tools like Gemini today will likely see substantial efficiency gains tomorrow. For companies navigating complex workflows and high volumes of documentation, Google Gemini may be one of the most powerful new tools available.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Supreme Court Rules Against Trump’s Tariffs

What the Ruling Means for Importers and U.S. Trade

The Supreme Court of the United States has issued a landmark decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The ruling marks a significant development in U.S. trade law and raises important questions for importers, customs professionals, and supply chain leaders across the country.

While the Court’s decision clearly addresses the legality of the tariffs themselves, it leaves unresolved the practical question that many businesses are now asking: what happens to the billions of dollars already collected?

Understanding IEEPA and Its Limits

IEEPA was enacted in 1977 to grant the President authority to respond to declared national emergencies involving foreign threats. Historically, it has been used to impose economic sanctions, freeze foreign assets, and restrict financial transactions.

It was not traditionally used as a mechanism for broad-based tariff policy.

The Trump Administration relied on IEEPA authority to impose certain tariffs tied to national emergency declarations. That use of authority was challenged, leading to this Supreme Court review.

The Court has now determined that IEEPA does not authorize tariffs in the manner they were imposed. In effect, the statute does not grant the executive branch the power to use emergency economic authority as a substitute for tariff-setting powers traditionally governed by Congress.

This is a statutory interpretation decision, not a policy judgment about tariffs generally, but its impact is substantial.

What the Supreme Court Actually Said

The ruling invalidates the IEEPA-based tariffs. However, it does not provide procedural guidance on how to unwind them.

Justice Brett Kavanaugh made this explicit in a notable observation:

“The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.”

That sentence is critical. The Court resolved the legality question. It did not address the administrative mechanics of refunds, protests, or reimbursement processes. In other words, the constitutional issue has been decided. The operational issue has not.

What This Means for Importers

From a financial standpoint, the stakes are significant. Billions of dollars were collected under the now-invalidated tariff authority.

However, several key questions remain unanswered:

• Will refunds be automatic or require formal claims?
• Will prior liquidation deadlines affect eligibility?
• Will Congress intervene legislatively?
• Will additional litigation determine next steps?

During a press conference following the ruling, Trump suggested the status of the money collected from tariffs was unclear and said, “I guess it has to get litigated over the next two years.” Additionally, in that briefing, Trump announced an additional 10% global tariff. 

All of that being said, until Customs and Border Protection (CBP) issues formal guidance, companies should avoid speculative filings or procedural moves that could complicate future eligibility. The companies best positioned in moments like this are those with clean audit trails and organized historical import data. From a compliance perspective, the focus should be on documentation readiness:

• Maintain detailed entry records
• Preserve payment confirmations
• Track impacted tariff line items
• Monitor CBP messaging and Federal Register notices

Broader Trade Policy Implications

This ruling reinforces a structural principle: tariff authority is not unlimited under emergency economic statutes.

The Trump administration and future administrations may still pursue tariffs under other legal authorities, such as Section 301 or Section 232, but the Court has clarified that IEEPA is not a broad substitute for congressional tariff powers.

For supply chains, that clarity may bring greater predictability over time. Emergency powers have limits. Statutory interpretation matters.

In an era where global trade policy can shift quickly, judicial boundaries help define where executive flexibility ends.

Practical Guidance for Businesses Right Now

The Supreme Court’s decision striking down IEEPA-based tariffs is a significant legal milestone. It clarifies the limits of executive authority under the International Emergency Economic Powers Act.

However, it does not yet clarify how the government will handle the billions collected from importers.

At this stage:

• No immediate filings are required.
• No refund process has been announced.
• No official CBP instructions have been published.

Companies should:

• Continue normal customs operations.
• Preserve documentation.
• Monitor official CBP communications.
• Stay in close contact with trade compliance advisors and customs brokers.

Premature action can be just as risky as inaction.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Avoiding Detention and Demurrage Fees

A Proactive Guide for Shippers

When your containers hit the port, the race against the clock begins. Between vessel delays, documentation requirements, customs checks, and drayage schedules, shippers face countless moving parts. Unfortunately, detention and demurrage fees often show up when even one of those parts is out of sync. These charges add up quickly, increasing your total landed cost and slowing down your entire supply chain. 

There is good news. With the right preparation and visibility, most detention and demurrage fees are avoidable.

Understanding Detention and Demurrage

Before exploring prevention strategies, it’s essential to understand the difference between the two charges:

• Demurrage occurs when a container stays too long at the terminal before pickup.
• Detention occurs when a container is taken out of the terminal but not returned within the allowed free time.

Both are tied to timing, both can become expensive fast, and both can disrupt downstream operations if not managed proactively.

The True Cost of Delays

Detention and demurrage fees are rarely isolated expenses. When a container sits longer than expected, costs compound:

• Daily storage or equipment fees
• Increased labor costs for rescheduled receiving
• Production or inventory delays
• Missed delivery deadlines for customers or distribution partners

A delay of just one or two days can completely change your landed cost and introduce ripple effects across your supply chain. This is why proactive planning is essential.

Common Causes of Detention and Demurrage

Port Congestion and Terminal Backlogs

Major ports often experience vessel bunching, equipment shortages, or reduced labor availability, all of which can delay container availability and truck appointments.

Documentation Delays

Missing, incorrect, or late paperwork is one of the most common causes of demurrage. If a bill of lading isn’t released or customs documents aren’t submitted early, the container may be stuck waiting, even if it’s physically available.

Customs Holds and Inspections

Certain shipments get flagged for examination, and while some holds are random, others can be triggered by incomplete or inaccurate documentation.

Trucking & Drayage Constraints

Chassis shortages, driver availability, or appointment bottlenecks can make it difficult to retrieve containers within the allotted free time.

Proactive Strategies to Prevent These Fees

1. Improve Pre-Arrival Coordination

A strong pre-arrival process is often the biggest differentiator between a smooth pickup and an expensive delay. Double-check all documents, confirm arrival notices, and communicate dates with your receiving warehouse.

2. Strengthen Communication with Carriers and Forwarders

Knowing cut-off times, holiday schedules, and free time limits puts you in control of the timeline. Your logistics partners should proactively notify you of changes, especially when vessels are delayed or discharged early.

3. Optimize Your Drayage Strategy

Booking trucking in advance is essential. Work with trusted drayage partners who actively monitor ports and can adapt when terminal conditions shift.

4. Use Digital Tracking Tools

Real-time container tracking allows you to spot problems early. Automated alerts for holds, availability, and cutoff deadlines give your team a chance to act before fees accrue. The SiShips mobile app is an innovative solution for modern shippers and provides transparency at the touch of a button.

5. Plan for Customs Contingencies

Even well-prepared shipments may be selected for inspection. Pre-clearing cargo where possible and maintaining thorough compliance documentation can significantly reduce processing delays.

6. Maintain Flexible Warehouse & Labor Scheduling

Your receiving team should be ready to unload containers promptly. This is something that demands extra attention during peak seasons or when vessels bunch. Extended receiving hours can be the difference between staying on schedule and paying detention. 

Image courtesy of Shunya Koide / Unsplash

Understanding Free Time and Negotiating Better Terms

Carriers provide a set amount of free time before detention or demurrage begins. This varies depending on the trade lane, port, and carrier. If you’re shipping high volume, negotiating extra free time may be possible. Long-standing relationships and consistent lane volume often give shippers stronger leverage for these discussions.

A skilled freight forwarder acts as an extension of your operations team by monitoring vessel schedules and delays; managing customs documentation; tracking container availability and free time; coordinating drayage, chassis, and warehouse timing; and providing early warnings when timelines shift

This level of oversight helps shippers make timely decisions and avoid unnecessary charges.

Final Checklist for Shippers

A quick, repeatable process can prevent thousands of dollars in fees:

• Verify all documentation before vessel arrival
• Track containers daily
• Understand your free time windows
• Schedule drayage early
• Prepare receiving teams in advance
• Maintain clear communication with logistics partners

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Using the ACE Portal for Potential Tariff Refunds

What Importers Need to Know Now

Importers across the U.S. are watching closely as the Supreme Court of the United States considers the legality of tariffs implemented last year. While no final decision has been issued yet, one thing is already clear: how tariff refunds will be issued has changed, and importers who are not prepared could face delays if refunds are authorized.

If your company has paid tariffs that may be subject to reversal, now is the time to understand the ACE Portal, upcoming deadlines, and how these changes affect customs compliance and cash flow.

Why Tariff Refund Readiness Matters

The Supreme Court is currently weighing whether the tariffs first imposed by the Trump administration in 2025 are legal. As of this writing, on Jan. 13, 2026, no announcement has been officially made. President Trump continues to announce more tariffs in the interim, including additional 25% tariffs on any country “doing business” with Iran. The decision, in either direction, will have a sweeping effect on domestic and international economies. 

A tariff reversal can result in significant refunds, especially for importers with high-volume or long-term supply contracts. However, eligibility alone does not guarantee timely repayment. U.S. Customs has updated its refund delivery process, and importers who do not adapt may experience unnecessary delays. This is not simply an administrative update. It is a compliance and financial planning issue that impacts how quickly funds can be returned to your business.

According to guidance from U.S. Customs and Border Protection, Customs will no longer issue paper refund checks after February 6. Historically, many importers received tariff refunds by mail, but that option is being phased out.

Going forward, refunds will be issued electronically via ACH, and participation requires access to the Automated Commercial Environment (ACE) Portal. If an importer is not registered and properly set up in ACE, refund processing may be delayed even if the underlying tariff decision is favorable.

What is the ACE Portal?

The ACE Portal is Customs’ secure online system that allows importers to manage trade-related information, including:

• Importer of Record data
• Entry and compliance records
• Financial transactions, including ACH payments and refunds

Many importers already interact with ACE indirectly through their customs broker. However, direct account access is now critical for receiving tariff refunds electronically.

The February 6 Deadline Explained

Importers have until February 6 to establish or update their ACE Portal account to ensure eligibility for ACH-based tariff refunds. After this date, Customs will no longer issue physical checks, creating potential complications for companies that have not completed the setup process.

Missing this step does not necessarily disqualify an importer from receiving a refund, but it can slow down payment timelines at a moment when Customs may already be handling a surge in refund activity.

If tariffs are overturned, Customs could see a large influx of refund claims in a short period of time. Importers who are properly registered in ACE and compliant with current requirements will be positioned to receive refunds more efficiently.

It is also wise to review past entries that may be affected by a tariff decision so internal teams are not scrambling once guidance is issued.

Stay In Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

Learn more about our personalized expertise and state-of-the-art software, contact us today.

Co-Founder Michelle Rockwell Joins “The Unshakeables” Podcast

In Discussion with Ben Walter and Tino McFarland

Sheltered International co-founder Michelle Rockwell was a guest on the latest episode of The Unshakeables [click here to listen], a Chase for Business podcast on the iHeartRadio network. She was joined by Tino McFarland, CEO of McFarland Construction, for an engaging and entertaining conversation about the current challenges facing small businesses. Through her personal experiences with freight forwarding, she sheds insight on the realities of working through tariffs, how inflation affects operations, and more.

“I personally thought it was a good chance to give people a feel for really what’s going on out there right now,” says host Ben Walter, reflecting on the interview. “We spend a lot of time [on the show] telling stories…[this] was a good chance to talk about where we are as an economy.”

Diving into the Realities of Tariffs

Speaking on how recent tariffs have affected importers, Michelle characterised clients as understandably conservative and careful. “There’s a lot of uncertainty with the importers of record. We have seen business slower than normal this time of year because ultimately, the end consumer has to pay those additional costs. It’s inevitable. We try to explain and we sympathize with them. We completely understand.”

“And unfortunately, we’ve had those hard conversations because what happens is sometimes those things go into effect and there’s no backdating. So it doesn’t matter when it departed, those tariffs are going to take effect. And it doesn’t matter if your cargo was already on the water and you were only expecting to say pay 20% or 30%. Now tomorrow you’re going to pay 55%. And it’s hard for them to swallow. And I get it.”

These difficulties are strongly felt across the board, especially when it comes to the de minimis exemption. “If you’re ordering, say clothing, it used to be that they could come into the country and there was no duty charge because the value was so little. [Importers used] a Section 321 entry and there was no duties and taxes. They can no longer do that. Now there’s a hundred-dollar duty automatically on any small package like that. Going from free to a hundred, that’s a lot, especially if you’re talking you bought a $20 dress or top whatever. It’s not worth it any longer. As a result, many clothing and textile retailers had to shut down.”

How SiShips Succeeds as a Small Business

Transparency, communication, and offering white glove service are key offerings from SiShips for every client, regardless of size. “The difference is, when you call us, we’re going to pick up that telephone, and we’re going to answer you. Our clients come to us because they need a certain level of service, and that’s what they expect.”

“We tell [our clients] what we know. Most of the time with tariffs, we’ve heard what they’ve heard. But until it’s printed in the Federal Register for us, it’s not a fact. We’re transparent with them, because we don’t know what to tell them or how to tell them to run their business. That’s obviously up to them.”

I’m Every episode of The Unshakeables ends with the same question from Ben Walter: “What’s one piece of advice you have for aspiring or current small business owners who are trying to make it out there?”

Michelle was ready with her answer from her decades of experience. “You have to partner with people who are your opposite. You’re going to have to stay positive and work hard, but you’re going to have to work together.”

Listen to the Full Episode Now

Check out the full episode now for all of Michelle’s insights, and a few laughs along the way, available on Apple Podcasts, Spotify, or wherever you listen.

Image courtesy of Ian Hutchinson / Unsplash

The Pivotal Case Will Have Major Implications on Presidential Authority and International Shipping

When the Trump Administration announced sweeping new tariffs under the International Emergency Economic Powers Act (IEEPA), many businesses were left wondering: Can a president really use emergency powers to reshape trade policy? In the months since, the “Liberation Day” tariffs have been paused and unpaused and deemed illegal by federal courts. As of November 2025, the tariffs remain in effect while the case is appealed.

The question of authority has now reached the Supreme Court via “Learning Resources, Inc. v. Trump”, a case that could redefine the limits of executive authority in U.S. trade law and determine whether billions in tariffs were lawfully imposed. After arguments were heard in early November, industry experts, politicos, and even the President himself have wasted no time in reacting to the potential decision. However, no decision will become official for several weeks or possibly months.

The Rise of “Emergency” Tariffs

The case stems from a series of tariffs President Donald Trump imposed on a wide range of imported goods, citing national emergency powers under the IEEPA. Traditionally, U.S. tariffs are enacted under laws like the Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962, both of which explicitly authorize the president to adjust tariffs in response to specific findings, such as unfair trade practices or threats to national security.

Image courtesy of Marek Studzinski / Unsplash

The IEEPA, by contrast, was passed in 1977 to allow the president to regulate economic transactions during national emergencies, primarily as a sanctions tool to “block,” “freeze,” or “prohibit” specific economic activities involving foreign adversaries. It has been used for decades to manage targeted sanctions against hostile regimes, not to impose general import duties.

In 2025, Learning Resources, Inc., a Chicago-based educational toy manufacturer, filed suit against the Trump Administration. The companies argued that the tariffs had no legal foundation in the IEEPA, which they claim does not authorize the imposition of import duties. Their case made its way through the lower courts and is now before the Supreme Court.

At the core of “Learning Resources, Inc. v. Trump” are two questions: 

1. Does the IEEPA authorize the President to impose tariffs on imported goods?
2. If so, does such broad delegation of power violate the Constitution’s separation of powers?

The Plaintiffs’ Argument: IEEPA Isn’t a Trade Tool

Learning Resources and the other companies involved argue that the wording and purpose of the IEEPA do not give the president the power to set tariffs.

They say that while the IEEPA allows the president to “regulate importation or exportation” during a national emergency, the word “regulate” does not mean “tax” or “charge duties.” In the past, Congress has always used clear terms like “tariffs” or “duties” when it wanted to give a president that kind of power.

They also point out that the IEEPA was created to handle targeted sanctions, such as blocking trade with specific countries, not to make large-scale changes to trade policy. The history of the law and how it has been used in the past both support this view.

Finally, the companies argue that letting the president use the IEEPA to create global tariffs would give too much power to one person without proper direction from Congress. They believe this goes against the Constitution and the limits the Supreme Court has set on presidential authority.

In short, Learning Resources believes the IEEPA should not be used as a way for the president to bypass Congress’s power to control trade and taxes.

The Government’s Argument: Tariffs Are “Regulation of Importation”

The Trump Administration, along with the Department of Justice, argues that the wording of the IEEPA gives the president enough authority to act.

They say the law allows the president to “regulate importation or exportation” during a national emergency, and that tariffs are simply one way to regulate trade. By using tariffs, the government can influence trade and protect the country’s economic interests.

They also point out that courts have long viewed tariffs as part of the government’s power to control foreign trade. The administration believes Congress wrote the IEEPA broadly on purpose so that presidents would have flexibility to act quickly in emergencies.

According to the White House, problems like global economic instability, unfair trade practices, and reliance on foreign supply chains made it necessary to declare a national emergency and take immediate action. They argue that Congress would not have been able to respond fast enough on its own.

If the Court agrees with this argument, it could greatly increase the president’s power to change trade policy without needing Congress’s approval.

Image courtesy of Nazarizal Mohammad / Unsplash

Business and Industry Reactions

The reaction from the business community has been strong and divided.

1. Importers and Manufacturers

For companies like Learning Resources, the tariffs increased costs dramatically. The firm’s CEO stated that the uncertainty caused by fluctuating tariffs forced them to cancel expansion plans and delay major investments. Many small and mid-sized businesses, particularly those reliant on imported materials, claim they’ve been caught in the crossfire of unpredictable trade policy.

2. Retailers and Consumers

Retailers warn that higher import duties ultimately mean higher prices for consumers. Educational supply companies, electronics manufacturers, and toy producers say that the costs are passed through the supply chain, contributing to inflationary pressure in consumer markets.

3. Policy Analysts and Trade Experts

Trade analysts caution that a ruling upholding the administration could set a precedent allowing future presidents of any party to impose tariffs unilaterally on virtually any goods, at any time, under the guise of a national emergency.

Meanwhile, legal scholars have filed amicus briefs supporting both sides, recognizing the case as one of the most significant tests of executive power in modern trade law.

4. President Trump

President Trump offered his own unique view on the case. He claimed, in a post on Truth Social several days after arguments, that “unwinding” the tariffs “would truly become an insurmountable National Security Event, and devastating to the future of our Country – Possibly non-sustainable!” 

Fox Business reported the U.S. collected more than $213 billion in tariff revenue through September 2025. U.S. importers counter Trump’s opinion by pointing out it would be relatively straightforward to return the money from tariffs, since U.S. customs paperwork includes detailed information on all shipments and payments.

A Case that Could Redefine Presidential Power

While the main focus of “Learning Resources, Inc. v. Trump” is understandably about the process of international trade and the costs passed onto consumers, it is really about the limits of presidential authority in economic policy. The Court’s decision will determine whether emergency powers can be used to reshape trade relationships and impose broad economic measures without explicit congressional action.

For importers, manufacturers, and global businesses, the stakes are enormous. For policymakers and constitutional scholars, the case may become a landmark decision in defining how far the “emergency state” can reach into the nation’s economic life.

As the Supreme Court prepares to decide, companies across America are watching closely and waiting to see how the balance between Congress and the President will be redrawn for decades to come.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Image courtesy of Frank McKenna / Unsplash

Demystifying Freight Insurance: What Every Shipper Needs to Know to Protect Their Cargo

Shipping cargo across the country or across the world involves countless moving parts. There’s warehouse handling. There’s customs inspections. There’s weather. No matter how carefully a shipment is planned, things can go wrong. That’s where freight insurance steps in.

Freight insurance provides peace of mind and financial protection for your goods in transit. Let’s break down what it is, how it works, and why it’s a must for every shipper, whether you’re sending your cargo by land, air, or sea.

What Is Freight Insurance?

Freight insurance, sometimes called cargo insurance, is a policy that covers the value of your goods against loss, theft, or damage while they’re in transit. It applies to domestic and international shipments and ensures that if something happens to your cargo, you’re compensated based on its declared value.

It’s important to understand that freight insurance is not the same as carrier liability. Carriers are only responsible for damage or loss that they directly cause and even then, compensation is often limited. For example, ocean carriers typically cover only a few dollars per pound, regardless of the cargo’s actual value. That means if your $50,000 shipment of electronics is damaged, you might receive only a fraction of its worth.

Freight insurance fills that gap, ensuring you’re not left covering a significant loss.

Image courtesy of Andy Li / Unsplash

How Freight Insurance Works

When you purchase freight insurance, you’re essentially transferring the financial risk of cargo loss or damage to an insurer. Here’s what happens behind the scenes:

1. You declare your shipment’s value. Typically, the total value is the commercial invoice value, plus the cost of freight and sometimes a percentage for anticipated profit.
2. Your insurance premium is calculated based on factors like cargo type, transport mode, route, and risk exposure.
3. Your policy goes into effect once the shipment leaves its origin and remains active until delivery at its final destination.
4. If a loss or damage occurs, you can file a claim with the insurer, supported by documentation such as a bill of lading, photos, and a damage report.

The amount you recover depends on your coverage type, claim evidence, and declared value. A freight forwarder like Sheltered International helps streamline this process by handling documentation, coordinating with carriers, and ensuring your claim is processed efficiently.

Carrier Liability vs. Freight Insurance

A common misconception among shippers is assuming that carriers automatically insure their cargo. In reality, carrier liability is limited, and it’s not true insurance.

Image courtesy of Acton Crawford / Unsplash

Common Misconceptions About Freight Insurance

Let’s clear up a few myths that often cause confusion:

“My carrier automatically covers my shipment.”

Most carriers include only basic liability coverage, which is not full insurance. It may exclude natural disasters, rough handling, or theft, and only applies when the carrier is clearly at fault.

“Insurance is too expensive for smaller shipments.”

Freight insurance is typically very affordable, often a small percentage of your cargo’s total value. For most shippers, it’s a small price to pay for complete peace of mind.

“I only need insurance for international freight.”

While long-haul shipments carry more risk, domestic freight can also be damaged in transit or while loading/unloading. Even short routes can benefit from proper coverage.

Types of Freight Insurance Coverage

There are several forms of freight insurance, and knowing the difference ensures you choose the right one for your operation.

1. All-Risk Coverage

This is the broadest and most comprehensive form of insurance. It covers loss or damage from most external causes, including theft, weather events, mishandling, or accidents. Most importers and exporters choose all-risk coverage for high-value or fragile goods.

2. Total Loss Coverage

This policy protects you only if your shipment is completely lost. For example, a shipment is considered a “total loss” if a container falls overboard or a truck is destroyed in an accident. It’s often used for bulk commodities or lower-value shipments.

3. Named Perils Coverage

Sometimes call Free from Particular Average (FPA) this policy covers only risks specifically listed in the agreement, such as fire, collision, or natural disasters. It’s less expensive but offers limited protection.

The Role of Incoterms in Insurance Responsibility

Your shipping contract likely includes Incoterms, which determine who is responsible for transport, customs, and insurance at each stage. Sometimes, insurance is required as part of the Incoterms.

• CIF (Cost, Insurance, and Freight): The seller must provide minimum insurance coverage until the goods reach the destination port.
• FOB (Free On Board): The buyer assumes responsibility, including insurance, once the goods are loaded onto the vessel.

How to Choose the Right Freight Insurance Policy

Every shipment is different. Before purchasing coverage, evaluate the following factors:

• Cargo Type and Value: Fragile or high-value goods require comprehensive protection.
• Transport Mode: Air freight has different risks than ocean freight, which are poles apart from train and truck freight.
• Route and Destination: Consider weather, political stability, and regional theft rates. Even heavily trafficked routes like the Suez Canal can have issues.
• Packaging Quality: Proper packaging reduces claim risk and may lower premiums.
• Experience of Your Freight Forwarder: Partner with an expert who can assess your shipment risk and recommend suitable coverage.

At Sheltered International, we review all of these variables to help clients select the most appropriate policy for their unique supply chain.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.