The Trump administration's trade war is far from over
Trump’s retaliatory measures show no signs of stopping anytime soon. On Friday, the U.S. Supreme Court rejected a request from two toymakers to expedite a trial challenging the legality of the trade measures.
The decision makes clear that the government now has a full 30 days to respond, not less. Family-owned businesses like Learning Resources and hand2mind are hoping to bypass the lower courts and go straight to the higher courts.
The two companies argued that Trump lacked the legal authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The law, enacted in 1977, allows the president to act in emergency situations. But they argued that the law does not allow him to impose broad tariffs on imports based on personal feelings.
They claim the tariffs are crippling commerce nationwide and that the prolonged court battle is unacceptable.
Source: United States Supreme Court
Toy companies protest, saying the tax hurts business.
“Given the massive impact of the taxes on virtually every business and consumer in the country, and the chaos caused by the president’s tax powers, IEEPA tax appeals cannot wait for the normal adjudication process,” the companies said in a court filing.
Rick Woldenberg, president and CEO of Learning Resources and hand2mind, told CNBC that the court’s failure to expedite the case was “a disappointment, but it’s just another test in the legal journey.” “You want to win every submission, but sometimes you have to concede defeat,” he said, adding that the legal battle is not over. “Ultimately, it will go to the Supreme Court.”
The dispute continues in lower courts. Last month, the U.S. Court of International Trade temporarily suspended the tariffs, ruling that IEEPA does not give the president the power to impose tariffs on all goods. The decision gave hope to businesses like Rick. But earlier this month, a federal appeals court overturned that injunction, allowing the tariffs to remain in effect while the parties continue their arguments.
The tariffs were first announced just weeks into Trump’s second term. Economists warned that the price increases would spark a new round of inflation, but inflation has yet to materialize as predicted.
Inflation has not yet reflected expectations
Consumer prices rose just 2.4% in May from a year earlier, according to the Bureau of Labor Statistics. That was far below many analysts' expectations. Prices rose 2.3% in April, the lowest since early 2021. Core inflation, which measures the personal consumption expenditures price index, fell to 2.5% in April—the lowest since March 2021.
This contrasts with the forecasts cited, such as Goldman Sachs predicting core goods inflation to hit 6.3% this year, or JPMorgan predicting core inflation will nearly double by 2026. In a May survey by the University of Michigan, US consumers expected prices to rise by an average of 6.6% by the end of the year. By June, that number had dropped to 5.1%, but concerns remain.
In fact, businesses have not passed on the cost of tariffs to consumers as many predicted. According to Fitch Ratings, the effective tariff rate will rise to 14.1% this year, up from 2.3% last year. That represents nearly 12 percentage points of growth under Trump’s trade policies by 2025. But prices have not followed suit, showing no signs of rising as sharply as expected.
Some economists still hold their predictions. They say this is just a temporary delay. The US economy is a huge system, and these things don't happen overnight. Trump's trade policy is also unstable, making predictions more difficult to be accurate.
Still, inflation is lower than when Trump first took office. Federal Reserve Chairman Jerome Powell said Wednesday that the current price increases are limited to a few items. “There are only a few items that have increased in price because of the tariffs,” he said. These items are mostly Chinese electronics, such as personal computers and audio-visual equipment. But most items have not seen major changes.
Why is that? Powell explained that stores are still selling inventory from before the tariffs were imposed. “The goods being sold today may have been purchased months before the tariffs were imposed,” he noted.
Source: https://tintucbitcoin.com/thuy-ngan-my-giu-thue-cang-thang-tien-dien-tu/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
