Sent Items #224: The Supreme Court Strikes Down Tariffs, TikTok Blinks & FedEx/UPS Shrink

Welcome to the February 22nd edition of Sent Items.

As I type this Canada is playing USA for the Olympic Men’s Hockey Gold. While I’m a dual citizen, I vouch for Canada, particularly when it comes to winter sports. However, I fear that if Canada beats the U.S. Trump will inflict an additional 20% tariff on Canada, because, well, he’s cray.

In any event, a massive thank you to everyone who joined us for the Austin VIP Dinner on Thursday. As I mentioned on LinkedIn, the conversations were superb, the energy was electric, and it’s clear that this community is building the future of commerce in real-time.

While we were eating steak and BBQ in Texas, the Supreme Court rewrote the rules on tariffs (saving importers billions), TikTok Shop completely caved on its logistics mandate, and FedEx announced it is closing nearly 500 stations. Oh, and a judge officially ruled that "boneless wings" can legally be called wings. What a time to be alive!

Here’s the latest unboxing 📦 this one featuring Dr Squatch (and Sydney Sweeney 👀)

Let’s get into it.

— Matt

The Supreme Court Strikes Down IEEPA Tariffs In a monumental 6-3 decision on Friday, the Supreme Court ruled that the president cannot use the International Emergency Economic Powers Act (IEEPA) to unilaterally impose sweeping tariffs. The Impact: This effectively strikes down the "Liberation Day" tariffs and shields the economy from an estimated $1.4 trillion in future tax increases. For supply chain operators and importers, this is a massive sigh of relief—and it opens the door to a potential $175 billion in refunds for tariffs already illegally collected. The mechanics of those refunds are still unresolved, but if you've been paying these duties, call your customs broker immediately. Source: Tax Foundation

But just when importers were popping champagne over the Supreme Court ruling, the reality of 2026 trade policy hit back. Reuters reported Friday that the administration is now moving to raise the baseline global tariff rate to 10-15%. While the SCOTUS ruling kneecapped the use of emergency powers (IEEPA) for targeted tariffs, this new global baseline threatens to raise costs across the board. If your 2026 margins weren't already stressed, they are now. Source: Reuters

The Reversal: TikTok Shop Walks Back Logistics Mandate Just weeks after issuing an "ultimatum" to U.S. sellers to use its fulfillment services, TikTok Shop has blinked. In an email sent to merchants this week, the platform confirmed it is halting the plan to eliminate independent "Seller Shipping." The Context: The original policy, set to take effect Feb 25, would have forced sellers to use TikTok’s "Fulfilled by TikTok" (FBT) or tightly integrated shipping options, effectively cutting out independent 3PLs. After massive backlash from brands (and realizing the operational chaos it would cause), they have paused the rollout indefinitely. For now, your current 3PL workflow is safe - but keep one eye open. Source: Modern Retail

The Great Network Contraction: FedEx & UPS Close Facilities The era of endless capacity expansion is officially over. FedEx revealed that it expects to close over 475 stations by the end of 2027 as part of its "Network 2.0" overhaul - amounting to roughly 30% of its facility footprint. UPS is following suit, confirming it will shutter 22 Teamster-staffed facilities across 18 states this year as it cuts up to 30,000 operational positions to adjust to volume shifts. The Takeaway: Both carriers are aggressively shrinking their physical footprints to drive efficiency. Fewer nodes mean different routing, which will ultimately impact your transit times and pricing. Source: Supply Chain Dive (FedEx) / Supply Chain Dive (UPS)

Amazon & Shopify Now Control Half of U.S. E-Commerce If you want to know where the gravity is in retail, look no further. A new report from Marketplace Pulse confirms that Amazon and Shopify combined now account for 50% of all U.S. e-commerce. As the market consolidates around these two behemoths, independent brands are realizing they have to play nice with the giants to survive. Source: Marketplace Pulse

eBay Buys Depop from Etsy for $1.2 Billion The great recommerce reshuffle continues. Etsy is officially selling Gen-Z resale darling Depop to eBay for $1.2 billion in cash. Etsy originally bought Depop for $1.6B at the height of the 2021 pandemic boom, but the platform became an operational drag on their margins. For eBay, it's a massive play to capture younger buyers and reclaim the resale crown. Source: WSJ

Department of the Weird: Boneless Wings are Legal In a victory for pub menus everywhere, a judge has officially dismissed a lawsuit against Buffalo Wild Wings, ruling that "boneless wings" do not constitute false advertising—even if they are just glorified chicken nuggets. First time, and likely the only time that B-Dubs will be mentioned in Sent Items. Source: WSJ

Third Person Updates & Events

We Are Hiring: Brand and Account Manager! As Third Person continues to scale, we are looking for a rockstar Brand and Account Manager to join the team. If you (or someone you know) are obsessed with the intersection of e-commerce, operations, and client success, apply here.

Applications Open: The September Retreat (Sept 28-30) Our second Logistics and Leadership Retreat is coming up next month in Nashville, and it is going to be amazing. But we all know each iteration gets even better, which is why we have officially opened applications for our September Retreat (Sept 28-30)! If you are an operator looking to connect with the best in the business, apply now. (Note: We also have a few select sponsorship opportunities open for September - reach out if interested).

Upcoming Webinar with Parabola (March 3) Mark your calendars for Tuesday, March 3. I am teaming up with the folks at Parabola for a deep-dive webinar on automating your operations and taking the manual pain out of logistics data. This event is exclusively for members of the SOP Community, Parabola’s free, Slack-based group for ops, supply chain, and logistics leaders. Sign up here

🏙️ SubSummit (Kansas City | May 13-15) I’m heading to KC in May for SubSummit, the biggest event for subscription brands. I have a great deal for brands who want to attend (note: it’s free + you get travel stipend). For vendors/suppliers, I can get you a deal as well. This is one of the highest-value events of the year for DTC operators.

🇨🇦 Montreal (Next Week) I am heading north to my alma mater, McGill University, tomorrow. I’ll be speaking to a couple of entrepreneurship classes at the Business School. I haven’t been back in 15 years so I am looking forward to it.

Have a great week!

- Matt

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