The "we are just onshoring manufacturing" pitch, which they mostly abandoned after a few weeks, was transparently ridiculous for this (and other) reasons.
Now there will be even more costs and chaos.
The White House is confident that this will substantially rebuild the tariff regime the Court struck down. But Trump has two problems. First, in all likelihood he can’t yell tariffs and instantly bully the world anymore, which was his main goal with tariffs anyway. His remaining options require longer-term planning; the only tariff available with less stringent fact-finding, an open-ended levy up to 50 percent under Section 338 of the Smoot-Hawley Tariff Act of 1930 on countries that the president defines as discriminating against U.S. trade or commerce, has never been tried before and would likely also lead to a lawsuit.But more important, the administration must figure out some way to return the money it’s collected from illegal IEEPA tariffs for more than ten months. And this tug-of-war will roil the rest of Trump’s presidency and beyond, with the possibility for a rerun of this scenario if the newly implemented Section 122 tariffs or others get invalidated by the courts as well.
