Distilled News: Supreme Court Strikes Down Trump Tariffs, Dow's AI Bet and the EPA's Climate U-Turn

We begin with a major legal blow to the Trump administration's trade agenda. The U.S. Supreme Court ruled 6-3 Feb. 20 that President Trump lacked the authority to impose sweeping tariffs under the International Emergency Economic Powers Act. Chief Justice John Roberts, writing for the majority, held that tariffs require explicit congressional authorization. The ruling invalidates the 25% tariffs on most Canadian and Mexican imports, the 10%–20% duties on Chinese goods tied to the drug-trafficking emergency and the "reciprocal" tariffs, which were a 10% baseline on all imports, with rates on China reaching approximately 145% on many goods. For chemical companies sourcing raw materials overseas, it's immediate relief, though Section 232 steel and aluminum tariffs remain in force. As for refunds on duties already paid, the court established no automatic mechanism, though one dissenting justice warned refunds could involve billions of dollars. In anticipation of the Supreme Court ruling, Daniel Mak, senior manager at EisnerAmper, suggested chemical companies begin documenting import entries and consulting trade counsel on potential claims.

From trade policy to the workforce, we turn to Dow Chemical’s Jan. 29 announcement that it would lay off approximately 4,500 employees as part of an AI-driven initiative it calls Transform to Outperform. The company tied the cuts to artificial intelligence adoption, a rare and bold move in an industry that typically avoids linking workforce reductions to automation. But industry veterans are divided. Some call it a legitimate strategic pivot. Others say it's AI washing, the practice of overstating AI's role to impress investors, much the way companies once hyped sustainability claims. To the skeptics, the technology is simply cover for a routine cost reset driven by weak markets. One former DuPont executive put it plainly: AI isn't going to replace plant operators anytime soon, and the engineers it does make more efficient won't disappear in large numbers either. Dow is targeting at least $2 billion in earnings improvements by 2028. Whether AI gets them there or just gets the headlines remains to be seen.

In environmental news, the Trump administration has revoked the EPA's Endangerment Finding,  as Tribune News Service (TNS) reported Feb. 12. The Endangerment Finding was a 2009 scientific determination by the agency that greenhouse gases pose a threat to public health. That finding was the legal cornerstone for decades of federal climate regulation under the Clean Air Act. Without it, the agency loses its primary authority to regulate carbon emissions. EPA Administrator Lee Zeldin had signaled the move last year, and President Trump made it official this month at the White House. Environmental groups warn the consequences will be sweeping. The administration has framed it as regulatory relief.

In corporate moves, BASF announced plans on Feb. 13 to expand its dispersions production capacity in Mangalore, India, with a new production line aimed at serving growing demand across the Asia-Pacific region in coatings, construction and paper applications. Separately, the German chemical giant is reorganizing its global business services division, which involves the consolidation of finance and HR functions into a new hub in India and moving supply chain services to its existing hub in Kuala Lumpur, Malaysia. The company says the moves are about standardizing processes, increasing automation and cutting costs.

The United Nations member states  elected Chilean diplomat Julio Cordano Feb. 7 as the new chair of the Intergovernmental Negotiating Committee on Plastic Pollution. Cordano takes over after the previous chair resigned late last year, leaving global plastics treaty talks in limbo. Negotiations stalled in 2025, and civil society groups are pressing the new leadership for transparency and an ambitious agreement covering the full lifecycle of plastics from extraction to disposal. Cordano called plastic pollution a planetary problem and said he is determined to help the committee cross the finish line.

That wraps up this month's top stories from ChemicalProcessing.com. Stay informed on the stories that matter most to the chemical processing industry in 2026. I'm Jonathan Katz, and this has been Distilled News.