US Economy - News, Updates and Discussion

UK government expects 'privileged trading position with the US to continue
​

The UK government says it's working with the US to understand how the overturning of Trump's tariffs will affect the UK.

"We expect our privileged trading position with the US to continue," it says in a statement.

It also says that while Supreme Court ruling is a matter for the US to determine, the government will continue to support businesses in the UK as further details are announced.
 

Trump needed congressional authority to impose tariffs, ruling says
​

Chief Justice John Roberts delivered the main opinion in today's decision.

In the ruling, Roberts said if the Trump administration was allowed to prevail with its tariffs agenda it "would replace the longstanding executive-legislative collaboration over trade policy with unchecked Presidential policymaking".

"Accordingly, the President must 'point to clear congressional authorization' to justify his extraordinary assertion of the power to impose tariffs. He cannot."
 

Many US businesses now face uncertain future​

Mitchell Labiak
BBC Business reporter

When Trump's April tariffs were first announced, many US businesses faced a handful of choices.

They could have moved some or all of their manufacturing to the US to avoid the import taxes, which is what Trump was hoping would happen, they could have passed on the cost to US consumers by raising prices, or they could have taken the cost hit themselves. They also could have done some combination of the three.

Whatever they have chosen to do, those same businesses will now need to decide whether to unmake those choices or stick with them.

There's freedom in being able to do that, but there is also uncertainty. And there's also ongoing uncertainty around whether they will be able to claw back any import taxes they have already paid.

As a general rule, businesses don't like uncertainty, which helps to explain the stock market reaction in the US.
 

Trade lawyer 'fairly confident' firms will eventually get money back​


Danielle Kaye
BBC New York business reporter

Trade lawyers are cautioning that while the Supreme Court's ruling opens the door to tariff refunds, businesses are still confronted with big questions about what form that process might take.

Steve Becker, head of law firm Pillsbury's international trade practice, tells the BBC that it will be up to the Court of International Trade to sort out the implementation of the court's ruling against Trump's tariffs.

The best thing for businesses, Becker says, is if the government were to announce an "orderly" procedure for obtaining refunds that does not require filing a lawsuit.

"I think companies can be fairly confident that they'll get their money back eventually. But how long it will take really is up to the government," Becker said.

"There certainly will be a high volume and a lot of work involved," he adds.

But at the same time, Becker says it's likely the Trump administration has a contingency plan in place to impose tariffs through other authorities.

That could mean, for example, using a law that allows the president to put tariffs of up to 15% in place for 150 days. He could also target specific countries or sectors.
 

Summary​

  • Donald Trump's sweeping global tariffs have been struck down by the US Supreme Court, in a major blow to the president's economic agenda, that he calls a "disgrace"
  • With a 6-3 majority, the Supreme Court rules Trump exceeded his authority when he imposed tariffs via a law reserved for national emergencies - they say he needs congressional approval to impose taxes on imports
 
  • The court's decision represents a rare check on this president's broad use of executive authority - read our North America correspondent's snap analysis
  • The ruling applies to his so-called "Liberation Day" tariffs, but not individual tariffs he's imposed on specific countries or products
  • Trump has long argued tariffs boost American manufacturing - but many in the business community, as well as Trump's political adversaries, say the costs are passed onto consumers
  • Wall Street responds quickly and positively to the court's ruling in early trading
What are tariffs?

  • They're taxes on imported goods, which are usually charged as a percentage of a good's value. They're paid to the government by companies bringing in the foreign products
 

GDP for 2025​

Real GDP increased 2.2 percent in 2025 (from the 2024 annual level to the 2025 annual level), compared with an increase of 2.8 percent in 2024. The increase in real GDP in 2025 primarily reflected increases in consumer spending and investment.


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On a more serious note. This isn't going to do anything for the US economy, and especially, every day American companies are going to claim those tariffs back, but people like you and me won't be getting a cent back because there is no way to judge or gauge how much tariff is being piped into consumer.

On the other hand, other country have expanded their trade network and left us behind, this isn't going to change now that SCOTUS has deemed most of these tariff is illegal. And tariffs had been hurting several US economic sectors (such as primary industries like farming and ranching) to the point that they are almost all but wiped out. This isn't going to restart those businesses; if anything, needing to refund means those subsidies Trump promised may not be coming at all.
 
j_hungary said:
On a more serious note. This isn't going to do anything for the US economy, and especially, every day American companies are going to claim those tariffs back, but people like you and me won't be getting a cent back because there is no way to judge or gauge how much tariff is being piped into consumer.

On the other hand, other country have expanded their trade network and left us behind, this isn't going to change now that SCOTUS has deemed most of these tariff is illegal. And tariffs had been hurting several US economic sectors (such as primary industries like farming and ranching) to the point that they are almost all but wiped out. This isn't going to restart those businesses; if anything, needing to refund means those subsidies Trump promised may not be coming at all.
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Can you believe Trump the lunatic was promising to abolish the income tax because of all the $$$'s being earned by tariffs ?
 
Watandar said:
Can you believe Trump the lunatic was promising to abolish the income tax because of all the $$$'s being earned by tariffs ?
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Well, if we suddenly go back to the time prior to 1860 then Trump wouldn't be wrong. But this is 2026. Not 1860.

I've not looked at current data. However, for the past 70 years or so, tariffs provided around 2% or less of total federal revenue. So yes, his proposal to replace revenues via the income tax with tariffs is unrealistic.
 
Watandar said:
Can you believe Trump the lunatic was promising to abolish the income tax because of all the $$$'s being earned by tariffs ?
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It's never going to happen. Income tax is around 3 trillion dollars a year, that's twice the volume of imports we are getting, so unless we are going after 200% tariff on everything, you can't replace income tax with the tariff.
 
ghazi52 said:

Summary​

  • Donald Trump's sweeping global tariffs have been struck down by the US Supreme Court, in a major blow to the president's economic agenda, that he calls a "disgrace"
  • With a 6-3 majority, the Supreme Court rules Trump exceeded his authority when he imposed tariffs via a law reserved for national emergencies - they say he needs congressional approval to impose taxes on imports
Click to expand...
Trump knew this would happen and his Commerce Secretary Lutnick is cashing in.....

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PRESIDENT TRUMP JUST SHOCKED EVERYONE He just announced that the US will impose 10% global tariffs on top of other tariffs.Trump also said that the Supreme Court ruling has made his ability to impose more powerful tariffs.He mentioned the Trade Expansion Act, 1974 Trade Act and said that tariffs will remain in place.People thought that Trump would go defensive, but the exact opposite happened.

 
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