SWK · 10-Q · 2026Q4 · Full report

Trade Policy and Tariffs

STANLEY BLACK & DECKER, INC. · 2026-11-04 · Importance 65 · Surprise 60

On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA); the U.S. Court of International Trade ordered Customs and Border Protection to refund collected IEEPA tariffs, and the agency launched its phased CAPE refund system on April 20, 2026. The company recognized pre-tax gains of approximately $181 million in the third quarter and $299 million in the first nine months of 2026 from IEEPA tariff refunds, partly offset by $48 million and $132 million, respectively, in directly attributable incentive compensation and growth investments. The company expects additional fourth-quarter 2026 growth investments to further offset gains recognized in the second and third quarters, and says further refunds are not guaranteed and could entail additional obligations, taxes, and legal or administrative developments. Temporary Section 122 tariffs expired on July 24, 2026, and Section 301 tariffs were subsequently implemented; the company’s 2026 guidance assumes additional Section 301 tariffs will not occur until late in the year and will not significantly affect 2026.

Key facts

• The Company reduced China production for the United States with a goal of completing the reduction by the end of 2026 or early 2027. source
• Section 122 tariffs expired on July 24, 2026, and Section 301 tariffs were subsequently implemented. source
• The Company raised prices in 2025 with a long-term perspective and to protect cash flow. source