tariff news

In a 6-3 decision, SCOTUS rules the Trump tariffs illegal under IEEPA. 

 The International Emergency Economic Powers Act (IEEPA), 50 U.S.C. §§ 1701–1708, is a 1977 U.S. federal law authorizing the President to regulate commerce and freeze assets in response to an unusual and extraordinary foreign threat to U.S. national security, foreign policy, or the economy, provided a national emergency is declared.  

White House economic advisor Kevin Hassett said Wednesday that the authors of a New York Fed paper that found U.S. companies and consumers are shouldering most of the tariff burden should be “disciplined.” 

 The paper in question concluded that 90% of the tariff burden is being shouldered domestically. 

 Essentially, the researchers looked at whether countries that export products to the U.S. were lowering their prices, or in effect eating the tariffs, or raising their prices and passing them onto consumers and companies. 

 “Prices have gone down. Inflation is down over time. Import prices dropped a lot in the first half of the year, that leveled off, and real wages were up $1,400 on average last year, which means that consumers were made better off by the tariffs,” he said 

 The core CPI, which excludes food and energy, was up 2.5% in January, its lowest annual gain since March 2021. 

 The United States will therefore delay the increase in tariff rates for upholstered furniture, kitchen cabinets, and vanities that was set to take place on January 1, 2026, under the September 29, 2025 Proclamation for an additional year.

 Given the ongoing productive negotiations regarding the imports of wood products, the President is delaying the tariff increase to allow for further negotiations to occur with other countries.