Many companies are widely expected to pass the cost of tariffs on to customers. If an item that typically costs a company $10 to import is hit with a 10% tariff, for instance, it will then cost the business $11 to import, the BBC explains. That extra cost is usually added, in part, to the price of the good when it’s sold in stores.

What you need to know about the trade court dispute, which Trump has called "America's big case," and how it's likely to play out in the months ahead.

U.S. President Donald Trump holds a chart next to U.S. Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2,