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Tariff Litigation Expands as Federal Court Weighs Next Move
Cleaner's Supply Inc. and Tarte Cosmetics say the tariffs have already disrupted hiring, shipments and pricing as the appeals court weighs a stay.
Two new businesses, Cleaner's Supply Inc. and Tarte Cosmetics, sued to block President Donald Trump's 10% tariffs, following a May 7 federal court ruling that deemed the duties invalid under the Trade Act of 1974.
The Federal Circuit is currently reviewing an administrative stay that keeps the 10% tariffs in effect, temporarily freezing a May 7 injunction protecting Burlap & Barrel, Basic Fun, and the State of Washington.
A coalition of 14 states led by Oregon argued the government's interpretation is flawed, contending "balance-of-payments deficits" referred to U.S. gold reserves; AAF General Counsel Marc Wheat stated, "No president should be able to exercise powers reserved to Congress on a whim."
Both companies claim the tariffs force them to scale back shipments, pause hiring, and delay product development, arguing that financial harm cannot be remedied by later refunds.
With briefing now complete, the Federal Circuit can rule at any time on whether to lift the injunction, while Section 122 tariffs are set to expire July 24 as the administration transitions toward new measures.