Now that two federal courts have ruled that President Trump had overstepped his authority in ordering the tariffs, Wells ponders the same question most of her peers are asking: Will they get that money back?
But also, as the White House vows to appeal, there’s the perennial other thought: Is this simply the latest curve on the tariff rollercoaster?
He’d prepared for double-digit tariffs on China, but not on his shipments from suppliers in India and Vietnam.
The White House has promised an appeal, defending its use of the 1977 law called the International Economic Emergency Powers Act, or IEEPA.
When the White House agreed in mid-May to temporarily lower tariffs on Chinese goods, Goodwin’s tariff bill fell to roughly 35% — still unaffordable for her business.
A lot of small business owners in the United States have been experiencing a range of emotions related to tariffs, including anxiety, confusion, worry, and frustration.
There are new emotions this week.
According to Sarah Wells, whose Virginia business sells breast-pump backpacks and other maternity accessories, “I feel a lot of relief and hope.”. She needed an additional $15,000 in March to get her shipment from China, which was the final one for the time being, to the United States. S. the first time the White House increased tariffs.
Wells wonders the same thing that the majority of her peers do now that two federal courts have decided that President Trump overreached himself in imposing the tariffs: Will they receive their money back?
Additionally, as the White House promises to appeal, there is the constant question: Is this just the most recent twist in the tariff rollercoaster?
Pet life jackets are being stocked in the restroom.
Stockpiling leashes, harnesses, and other pet supplies that he sells at hundreds of stores helped Barton O’Brien get ready for tariffs.
Former Marine O’Brien, who currently operates BAYDOG from Kent Island, Maryland, says, “We had dog life jackets in the bathroom.”. “We had a bursting warehouse. We were forced to rent a container and set it outside. “.”.
He has since canceled some of his own orders for dog sweaters and seen a number of companies sue the Trump administration over tariffs.
He had budgeted for double-digit tariffs on China, but not on his shipments from Vietnamese and Indian suppliers. O’Brien canceled orders for a large portion of his planned fall sales because a proposed 26 percent tax on imports from India would have more than offset his profit margin. Additionally, he is betting that tariffs will be reduced in the upcoming months for the goods he plans to sell next year—possibly as a result of the Supreme Court taking up the tariff case.
“The manufacturing cycle is quite lengthy. Therefore, you should plan six to eight months in advance,” O’Brien advises. Although we are unsure of the tariff regime, we must at least make them in the hopes of receiving a positive ruling. “,”.
Court decisions are currently on hold.
The U.S. A. The Court of International Trade ruled in favor of five companies and twelve states, overturning many of Trump’s tariffs. The day after, a U. S. . That decision was temporarily halted by the appeals court until the case was resolved.
Additionally, on Thursday, a second federal court ruled in favor of two Illinois toy importers, blocking Trump’s power to unilaterally impose tariffs.
To support its use of the 1977 International Economic Emergency Powers Act, or IEEPA, the White House has pledged to file an appeal.
According to spokesperson Karoline Leavitt, “We expect to fight this battle all the way to the Supreme Court.”.
Meanwhile, companies are left in the dark, uncertain about where to locate factories, how much to raise prices, and whether to manufacture or ship more.
“At this time, I have no plans to do anything,” says Rozalynn Goodwin of South Carolina, who sells patented double-snap hair barrettes manufactured in China called GaBBY Bows. “I simply do not trust the current situation. “.
Tariffs are being paid on $3.99 barrettes.
Goodwin finds herself in a difficult situation after her company secured a fantastic contract to supply hundreds of Claire’s stores with GaBBY Bows. However, at one point, her products were subject to tariffs totaling over 170 percent. When the White House decided to temporarily reduce tariffs on Chinese goods in mid-May, Goodwin’s tariff bill dropped to about 35 percent, which was still too high for her company to pay.
“Every cent counts when you’re selling a $3 point product,” says Goodwin. “Every penny. “.”.
The agreement with Claire’s has to be renegotiated by her. Rather than starting with fresh hues and patterns, they will begin with the barrettes that Goodwin already has in the nation. She hasn’t stopped searching for U. S. -based producers, but their costs are still too high. When her stock runs out, what will she do?
Goodwin states, “I hope that by the fall, you know, cooler heads are at work, and we can get to some sort of resolution.”. “I’m going to make our current situation work. Until I am no longer able to make it work. “,”.
The White House can impose import taxes through other legal means, even if recent court decisions uphold the emergency law and remove Trump’s tariffs. However, they would probably have a smaller scope than the global tariffs that this week’s rulings are aimed at. The 1974 Trade Act’s Section 301 permits import taxes to penalize trade violations, while Section 232 of the Trade Expansion Act permits the president to impose tariffs in response to national security threats. In the past, Trump has applied tariffs to Chinese goods and imports of steel and aluminum using both powers.
Many vendors increase their prices.
In order to partially offset her tariff costs, Sarah Wells, whose company, Sarah Wells Bags, sells totes and breast milk coolers, has increased prices by 10 to 15 percent.
She is among the many entrepreneurs who have done so. This week, the cosmetics company e. I. F. claimed that due to tariffs, all of its prices are being raised by $1. Earlier this month, Trump attacked Walmart after the superstore threatened to raise prices due to tariffs.
“I have just been squeezed from all ends,” Wells explains. “Shipment costs have increased. Boxes and shipping labels have become more expensive. “.
Importers rushed to store cargo in bonded U.S. vessels last month when tariffs on Chinese goods surged to 145 percent. A. warehouses, where they were able to evade the taxes for the time being. These same companies then rushed to remove their cargo from warehouses and paid more to ship more items after the 90-day truce reduced the tariffs to 30%.
In case of a crisis with China, Wells had secured a new manufacturer in Cambodia. However, it will take time, and the shipments from Cambodia are probably not going to arrive until early 2026. She is therefore closely monitoring the tariff lawsuits in order to determine whether to start placing orders with her Chinese suppliers again.
The ultimate irony is that until we have a little more clarity, businesses won’t be hurrying to reshore to the United States. A. or leaving China,” says Marc Busch, a Georgetown University trade law specialist. Nobody can predict what might happen next. Today’s biggest issue is that it could change in an instant. “..”.
