By May Anderson and Anne Inogio
NEW YORK (AP) – A company that President Donald Trump has turned on again absorbed tariffs on Thursday after a US court of appeals temporarily blocked a federal court order that halted most of his taxes on foreign imports.
A panel of three judges at the U.S. International Trade Court determined that Trump had stepped over his authority late Wednesday when he summoned the 1977 International Emergency Economic Force Act.
However, on Thursday afternoon, the federal court of appeals granted an motion that allowed the government to continue collecting customs duties under the Emergency Act.
Even before the federal Circuit appeals court intervened, employers and the National Retail Federation said Wednesday’s ruling created more uncertainty and made budgets and planning more difficult without the definitive words of the case.
“The U.S. International Trade Court’s ruling that obstructs most of President Trump’s tariffs is just another chapter in this difficult journey towards clear, consistent strategic trade policy,” Jonathan Gold, vice president of supply chain and customs policy, said in an emailed statement. “As this process continues in court, we will encourage a prompt resolution.”
The president imposed the emergency law in early April, when financial markets imposed changes in import tax rates on products from dozens of countries, including the US’s biggest trading partners, after which the president imposed changes in import tax rates, with Trump being reduced to 10% in all countries except China, and that product was taxed at 145%.
Jonathan Silva, owner of WS Game Company, said he would not change plans based on the ruling. He has board games that his company sells in China,
“We know this will take some time for the appeal process to take place. “But we hope this will be the start of more academic use of tariffs in the coming months and years. What we want to do is ensure that everyday retaliation and suspensions will not help us run our business, so we will be sure that we are in the environment where we operate.”
Corie Barry, CEO of electronics retailer Best Buy, told reporters Thursday that legal news has made her more or less optimistic, but emphasized the importance of continuing to maintain Agile, not changing courses in response to almost a day’s tariff development.
“I don’t think we’ll do anything differently based on the news overnight,” Barry said. “What I really tried to work with the team is to keep the customer nerdy focused and ensure that whatever the background is, it gives them the right assortment, price, (promotion) rather than overreacting to a particular moment.”
Barry told analysts that Best Buy has taken various measures to offset higher tariff costs, including pushing vendors to spread to manufacturing locations. The company is raising some prices to absorb tariff-related costs, she said. She refused to be specific given the liquid situation.
Jim Umrauf, a business with Oklahoma City-based 4nines, manufactures vehicle seat covers and cargo liners for dog owners and others, but said the court’s ruling did not provide peace of mind, but only complicated his decisions.
“At this point, we don’t know if the decision will be held, whether it will apply to (Trump’s) original 2018 tariffs, or how it will come into effect,” he said. “Without being clarified, we are planning a moving target. Like many others, we have already been locked in quotes and made our purchase decision assuming there is tariff.
Kelsey O’Callaghan, founder of a bathroom accessories company called Salt Lake City Kitchen and Dry Home, said he hopes the trade war will continue. The constant flow since Trump took office “paralyzes” her, but O’Callaghan said she was trying to make an educated decision.
The company has already postponed launches of several new products and fired its CEO and several other key employees. They suspended orders from China in early April, but stumbled back on some when President Trump reduced the price of Chinese goods to 30% for 90 days.
Currently, Dry Home is planning to test price increases to see if shoppers will continue to buy the product.
“In the business sense, you need to try to create as much certainty and stability as possible, using variables that you can control,” says O’Callaghan.
However, some businesses were more optimistic. Burlington Court Factory CEO Michael B. O’Sullivan said Thursday that a suspension of tariffs could help discount retailers like him who buy extra inventory from other retailers.
The court’s ruling and continued uncertainty could further fuel the production race, which began when tariff rates on Chinese products were significantly reduced, O’Sullivan said.
“There is a huge rush right now in the production and shipping of the entire industry. Last night’s court decision could add to that rush,” he said. “Instead of the shortage, this Topsitter Bee Stop/Start Surge could create an attractive purchasing opportunity.”
Original issue: May 29, 2025, 5:20pm EDT
