Court Decision Offers Temporary Relief for Businesses Amid Tariff Uncertainty

Emma McIlroy, founder of the apparel brand Wildfang, has been pushing hard to shift production away from China since the onset of the trade conflict. Securing manufacturing space for jumpsuits and button-down shirts has been a significant challenge, as numerous U.S. importers compete for limited factory availability, demanding intense focus from her small team of eleven.

The federal court’s ruling on Wednesday night, which declared most of the tariffs imposed under the previous administration unlawful, temporarily halted that transition. Ms. McIlroy found herself uncertain if tariffs would still apply to her next shipment expected in August.

“I’m navigating these changes as they happen,” Ms. McIlroy shared on Thursday. “Just yesterday, I was confident that we’d be manufacturing in Vietnam. Today, I’m uncertain.”

American businesses are swiftly adjusting to the unpredictable shifts in the trade policies, which have made long-term planning nearly impossible. This volatility is especially challenging for sectors that place orders months or even seasons in advance.

The Wednesday ruling by a three-judge panel at the U.S. Court of International Trade found that the use of emergency powers to impose tariffs—30 percent on Chinese goods, 25 percent on most products from Mexico and Canada, and 10 percent on others—was unlawful. The court ordered the administration to halt these tariffs within ten days.

However, the relief was short-lived as a higher court issued a stay on this decision just hours later.

If the original ruling ultimately stands, it could prevent the reimplementation of the higher reciprocal tariffs that were temporarily suspended earlier this year. It might also allow companies that have already paid these emergency tariffs to seek refunds through established customs procedures.