Already numb to tariff twists, US importers see legal decisions as
another price of doing business
[May 30, 2025] By
MAE ANDERSON and ANNE D'INNOCENZIO
NEW YORK (AP) — Businesses rattled by President Donald Trump's on again,
off again tariffs absorbed more jolts on Thursday after a U.S. appeals
court temporarily blocked a federal court order that would have halted
most of his taxes on foreign imports.
A three-judge panel of the U.S. Court of International Trade ruled late
Wednesday that Trump overstepped his authority when he invoked the 1977
International Emergency Economic Powers Act to declare a national
emergency as justification for his wide-ranging tariffs.
But a federal appeals court on Thursday afternoon granted a motion
allowing the government to continue collecting tariffs under the
emergency powers law while the Trump administration challenges the trade
court's decision.
Even before the Court of Appeals for the Federal Circuit stepped in,
business owners and the National Retail Federation had said that without
a definitive word in the case, the Wednesday ruling only created more
uncertainty and made it harder to budget and plan.
“The ruling by the U.S. Court of International Trade blocking most of
President Trump’s tariffs is just another chapter in this difficult
journey toward a clear, consistent and strategic trade policy," Jonathan
Gold, the trade group's vice president of supply chain and customs
policy, said in an emailed statement. "We urge rapid resolution as this
process continues in the courts.”
The president invoked the emergency powers law in early April when he
imposed varying import tax rates on products from dozens of countries,
including the biggest trading partners of the U.S. After financial
markets showed signs of panic, Trump lowered the rate to 10% for every
country except China, whose goods were taxed at 145%.

Jonathan Silva, the owner of WS Game Company, said he did not intend to
change his plans based on the ruling. He has the board games his company
sells made in China,
“We know that this will take time for the appeals process to take place
and a final ruling to be instituted,” Silva said. “But we are hopeful
that this will be the beginning of a more academic use of tariffs in the
coming months and years. All we want to do is have certainty in the
environment that we are operating in, as the day-to-day retaliations and
pauses are not conducive to business operations.”
The CEO of electronics retailer Best Buy, Corie Barry, told reporters on
Thursday that the legal news did not make her more or less optimistic
but rather underscored the importance of continuing to remain agile
while not changing course in response to near-daily tariff developments.
“I don’t think there’s anything we would do differently based on the
news overnight,” Barry said. “What I really tried to work with the team
on is to not actually overreact to any given moment in time, but instead
to stay maniacally focused on our customers and ensure we are bringing
the right assortment, price, and (promotions) to them, whatever the
backdrop.”
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Shoppers walks past a Calvin Klein store at Citadel Outlets in
Commerce, Calif., April 14, 2025. (AP PhotoDamian Dovarganes, file)
 Barry told analysts that Best Buy
has taken a variety of steps to offset higher tariff costs,
including pushing vendors to spread out where they do manufacturing.
The company is increasing some prices to absorb tariff-related
costs, she said, calling the move “a last resort.” She declined to
be specific given the fluid situation.
Jim Umlauf, whose business, 4Knines, based in Oklahoma City, makes
vehicle seat covers and cargo liners for dog owners and others, said
the court ruling did not offer reassurance but only further
complicated his decision-making.
“At this point, we don’t know whether the decision will hold,
whether it applies to (Trump's) original 2018 tariffs, or how it
will be enforced,” he said. “Without clarity, we’re left planning
around a moving target. Like many others, we’ve already locked in
quotes and made purchasing decisions assuming tariffs would remain
in place. This development, rather than offering relief, introduces
new logistical complications at the worst possible time.”
Kelsey O’Callaghan, the founder of a Salt Lake City kitchen and
bathroom accessories company called Dorai Home, said she expected
the trade war to continue. The constant flux since Trump's return to
office has made her “numb,” but O'Callaghan said she has tried to
make educated decisions.
The company already postponed the launch of several new products,
laid off the CEO and some other key employees. It paused order
shipments from China in early April but resumed some on a staggered
basis when the president Trump lowered the rate for Chinese goods to
30% for 90 days.
Now, Dorai Home plans to test price increases to see if shoppers
will still buy its products.
“In a business sense, you have to try to create as much certainty
and stability as you can with the variables you can control,"
O’Callaghan said.
But some businesses were more optimistic. Burlington Coat Factory
CEO Michael B. O’Sullivan said Thursday that the tariff pause might
help discount retailers like his that buy excess inventory from
other retail companies.
The court ruling and continued uncertainty may further fuel a
production race that started when the tariff rate for Chinese
products were substantially reduced, O'Sullivan said.
“There’s now a huge rush on production and shipping across the
industry. Now, the court decision last night could add to that
rush,” he said. “Instead of shortages, this topsy-turvy stop/start
surge has the potential to create attractive buying opportunities.”
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