American small-business owners have been navigating a turbulent landscape of tariffs, marked by a mix of emotions such as worry, confusion, anxiety, and frustration.
This week, however, a sense of relief and hope has emerged among some, as recent court rulings challenge the authority of President Trump regarding tariffs.
Sarah Wells, who operates a company in Virginia selling breast-pump backpacks and maternity accessories, expressed her newfound optimism.
After having to scramble to find an additional $15,000 to pay for her shipment from China—a shipment that arrived during the initial tariff increases—Wells is left wondering about the financial implications of the recent court decisions.
The pressing question for many business owners is whether they will recover the funds they have already spent due to these tariffs.
Adding further complexity to the situation, the White House has pledged to appeal the rulings, leaving many to ponder whether they are merely witnessing the next twist in the ongoing tariff saga.
In anticipation of potential tariff hikes, Barton O’Brien from Maryland took proactive measures by stockpiling dog supplies, filling every available space in his warehouse.
“We had dog life jackets in the bathroom,” O’Brien recalls.
He found himself in a precarious position after canceling orders for doggie sweaters, as unanticipated tariffs were levied not only on products from China but also on imports from India and Vietnam.
A proposed 26% tax on imports from India would have severely impacted O’Brien’s profit margins, prompting him to rethink his supply chain.
As O’Brien prepares for the upcoming months, he remains hopeful that the Supreme Court may ultimately intervene favorably regarding the tariff situation.
His remarks reflect the reality many small-business owners face:
“The production cycle is very long. So you need to plan things six months, eight months out. We don’t know what the tariff regime is going to be, but we have to at least get them made and then hopefully we get a favorable decision.”
Recent court rulings have created a complex legal landscape.
The U.S. Court of International Trade recently ruled against many of Trump’s tariffs in favor of a coalition of 12 states and five businesses.
However, a U.S. appeals court has temporarily paused this decision pending further legal proceedings.
Adding to the uncertainty, another federal court has ruled against Trump’s unilateral tariff powers, siding with two Illinois toy importers.
The White House is prepared to appeal these decisions, asserting that it is justified by the International Economic Emergency Powers Act (IEEPA).
Spokeswoman Karoline Leavitt stated, “We expect to fight this battle all the way to the Supreme Court.”
In light of these ongoing legal challenges, businesses find themselves uncertain about their next steps regarding inventory and production.
Rozalynn Goodwin from South Carolina, who sells patented hair barrettes made in China, summarized the apprehension many feel:
“I’m not planning to do anything right now. I don’t trust what’s going on right now; I just don’t.”
Goodwin recently secured a significant deal with Claire’s to supply her GaBBY Bows, but the economic impact of rising tariffs has been overwhelming.
At one point, tariffs on her products exceeded 170%, crippling her business’s potential.
Despite a temporary reduction in tariffs to about 35%, Goodwin expressed how every cent counts when your products sell for just $3.99.
She has had to renegotiate her arrangement with Claire’s, focusing on existing inventory rather than launching new designs.
Looking for domestic manufacturers has not yielded results either, as their pricing remains prohibitive.
The uncertainty looms large: what happens when her inventory is depleted?
Goodwin’s hope is to see progress by fall, remarking, “I’m going to make what we have work until I cannot make it work anymore.”
Even if the courts strike down Trump’s tariffs, the White House retains other avenues to impose import taxes.
These would likely be more restricted compared to the sweeping tariffs currently in question.
The Trade Expansion Act allows tariffs under the pretext of national security threats, while the 1974 Trade Act enables actions against trade violations.
Trump has previously utilized these powers to impose tariffs on steel, aluminum, and various goods from China.
In response to rising costs, many sellers like Sarah Wells have increased their prices by 10% to 15% to mitigate the financial burden imposed by tariffs.
Wells’ experience echoes that of many business owners, as seen in the case of cosmetics company e.l.f., which announced a $1 price hike across all its products due to the tariffs.
The financial strain on small businesses is immeasurable.
As Wells explained, “I have just been squeezed from all ends. The cost of shipping has gone up. The cost of boxes has gone up, shipping labels.”
Last month, as tariffs soared to 145% on goods from China, many businesses scrambled to stash cargo in bonded U.S. warehouses to mitigate costs.
With the subsequent truce lowering tariffs to 30%, these same businesses rushed to retrieve their cargo, incurring extra shipping fees.
Wells also explored a new manufacturing partnership in Cambodia to diversify her supply chain, but these efforts might take until early 2026 to bear fruit.
She continues to monitor ongoing tariff lawsuits closely, contemplating whether to recommit to her Chinese suppliers once again.
“Until we get a little more clarity, the ultimate irony is we’re not going to see companies rushing to do much of anything, in terms of reshoring to the U.S. or moving out of China,” said Marc Busch, a trade law expert.
“No one knows what could be next. It could change in a heartbeat, and that really is the big problem today.”
image source from：https://www.npr.org/2025/05/30/nx-s1-5415763/trump-tariffs-blocked-small-businesses-refunds
