By Sarah Nassauer, Suzanne Kapner and Te-Ping Chen

Retailers decided not to blink this time. After the head-snapping whiplash from this week's court rulings on President Trump's tariff policies, they aren't changing their plans.

The U.S. Court of International Trade ruled Wednesday that the president didn't have the authority to impose sweeping tariffs. Then a federal appeals court on Thursday decided that Trump could continue collecting tariffs, for now.

"What I've really tried to work with the team on is to not actually overreact to any given moment," Best Buy Chief Executive Corie Barry said Thursday.

For months, businesses across the U.S. that rely on imported goods have been trying to figure out how to navigate the on-again, off-again tariffs imposed by Trump. Companies have been raising prices, cutting back on spending and laying off workers, all in an effort to offset the fluctuating costs of tariffs.

The 145% tariff rate that President Trump imposed in April on Chinese goods created a de facto trade embargo between the two countries. A 90-day truce reached in May between the U.S. and China sent importers scrambling to get their goods onto ships from China.

Trump's tariffs have prompted many retailers to move production to other countries and raise prices on U.S. store shelves, and retailers said the court rulings this week won't change the plans they already have set in motion. Executives at Costco, Kohl's, Gap and Best Buy said they are absorbing some tariff costs by diversifying their supply chains away from China and, in some cases, raising prices.

Best Buy has passed through tariff-related price increases on some products, Barry said. And today, around 33% of the goods sold at Best Buy came from China, down from 55% in March. In the few weeks since Best Buy's price increases, demand for those items hasn't fallen, Barry said. On Thursday, the retailer cut its sales and profit forecast for the full year, citing the impact of tariffs and a pullback in consumer spending.

"I don't think there is anything we would do differently based on the news overnight," she said on a call with reporters Thursday morning.

The court rulings this week won't change much for Gap because the retailer already has strategies in place to offset more than half of its tariff costs, Chief Executive Richard Dickson said Thursday.

Gap has been moving production to countries with lower tariff rates, working with its suppliers to reduce costs and adjusting its inventory mix, he said. By the end of January, China will account for less than 3% of Gap's production, down 10% from a year earlier.

Kohl's Finance Chief Jill Timm said a pause on tariffs would be good news for the retailer's price-sensitive, middle-income customers, but the company isn't altering its plans.

Kohl's tariff strategy includes diversifying away from high-tariff countries and reducing its inventory, particularly on items like small electronic gadgets that could be subject to tariff-related price increases.

At Loretta Bridal Boutique in Bonita Springs, Fla., a family-run store, co-owner Meg Drasutaviciute puzzled Thursday over what to do with the tags on the shop's 500 dresses. Trying to keep pace with the rapidly changing tariff landscape has already led Drasutaviciute and her mother to amend prices with pens and Wite-Out -- a process that takes about 10 days.

"I think I'll wait it out and kind of observe, and I can verbally make the changes I need to make to clients depending on the situation," Drasutaviciute said.

She and her mother recently finished changing prices to reflect the 90-day deal with China. Still, bridal dresses have long lead times, and Drasutaviciute said she is bracing herself for reactions from brides who placed their orders at a moment when tariffs were higher. She wonders if they will still be willing to pay for those costs if the tariffs are no longer in effect at the time of delivery.

"I foresee a lot of arguments," she said.

Write to Sarah Nassauer at Sarah.Nassauer@wsj.com, Suzanne Kapner at suzanne.kapner@wsj.com and Te-Ping Chen at Te-ping.Chen@wsj.com

(END) Dow Jones Newswires

May 29, 2025 18:02 ET (22:02 GMT)

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