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Tag: Tariff

  • Shoppers in California plan to splurge this holiday season — out of fear

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    Shoppers in California plan to splurge this coming holiday season, but not because they are confident about the future. They are worried about inflation and figure it’s better to buy now than pay more later.

    At least that’s the takeaway from a new report from accounting firm KPMG that shows that consumers on the West Coast are more concerned about price rise and tariffs than those in any other region in the country.

    Nationally, shoppers intend to boost their holiday spending by 4.6% this year compared with last year, spending an average of $847 on shopping, according to the report.

    “When you think about why consumers are planning on spending more, it’s not that they have more wallet to spare, but it’s actually an expectation that prices are increasing,” Duleep Rodrigo, KPMG U.S. consumer and retail leader, said in an interview. “Eighty percent also of consumers are really being very conscious about inflation, and inflation that is impacted as a result of tariffs.”

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    Of the six different regions KPMG surveys, the Pacific region — which includes California, Oregon, Washington, Hawaii and Alaska — showed the highest concern for rising prices due to tariffs, with 72% citing inflation as a top concern.

    Nationally, 8 in 10 consumers believe tariffs will result in price increases. The least concerned were consumers in the Northeast, where only 6% said price increases would result in cutting back on holiday spending.

    “The consumer is spending like a poker player with a small chip stack,” Rodrigo said in the report. “They know they can’t play every hand but are willing to go ‘all in’ on a promising hand with a high emotional payoff. There’s also a psychological element where the consumer is managing a complex set of uncertainties.”

    KPMG found that consumer spending on essentials such as groceries, automotive expenses and personal care have increased in 2025, though much less than last year. In discretionary categories such as toys, furniture and hobby supplies, people expect to spend less.

    As budgets get tight, more people plan on spending on themselves this holiday season, with many purchasing big ticket holiday travel costing more than $1,000.

    The top gifts people want to receive this holiday season? Cold hard cash — followed by gift cards and apparel — indicating that more people want flexibility to spend on things they like, according to KPMG.

    Consumer price inflation for Los Angeles increased 3.3% in August, compared with the same time last year. National consumer inflation stood at 2.9% for the same period, according to the U.S. Bureau of Labor Statistics.

    From toys to apparel, retailers have experienced varying levels of impact due to President Trump’s sweeping tariffs on much of the world this year.

    Many retailers have been absorbing the costs of tariffs imposed by the Trump administration but cannot hold off indefinitely.

    Rodrigo said price increases on goods have already started happening, with retailers being more strategic.

    “For now, consumers that are in the top 20% are probably driving 80% of the economic activity that is sustaining and maintaining the current state of the economy,” Rodrigo said. “But there is a larger population that is really hurting, and that is really concerned with their dollars right now.”

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    Nilesh Christopher

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  • Report: Slips in employer optimism tied to Trump tariffs

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    BOSTON — The state’s economy may be on solid footing but employers are becoming increasingly pessimistic about the impact of President Donald Trump’s tariffs on their bottom lines, according to a new report.

    The latest Business Confidence Index, which is compiled by the pro-business group Associated Industries of Massachusetts, shows overall enthusiasm among employers “grew darker” after slipping 1.4 points to 47.5 on a 100-point scale in September.


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    By Christian M. Wade | Statehouse Reporter

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  • Tariffs and birthright citizenship will test whether Trump’s power has limits

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    Supreme Court justices like to talk about the Constitution’s separation of powers and how it limits the exercise of official authority.

    But Chief Justice John G. Roberts and his conservative colleagues have given no sign so far they will check President Trump’s one-man governance by executive order.

    To the contrary, the conservative justices have repeatedly ruled for Trump on fast-track appeals and overturned federal judges who said the president had exceeded his authority.

    The court’s new term opens on Monday, and the justices will begin hearing arguments.

    But those regularly scheduled cases have been overshadowed by Trump’s relentless drive to remake the government, to punish his political enemies, including universities, law firms, TV networks and prominent Democrats, and to send troops to patrol U.S. cities.

    The overriding question has become: Are there any legal limits on the president’s power? The Supreme Court itself has raised the doubts.

    A year ago, as Trump ran to reclaim the White House, the justices blocked a felony criminal indictment against him related to his role in the Jan. 6, 2021, mob attack on the Capitol as Congress met to certify Trump’s defeat in the 2020 election, for which Trump was impeached.

    Led by Roberts, the court ruled for Trump and declared for the first time that presidents were immune from being prosecuted for their official actions in the White House.

    Not surprisingly, Trump saw this as a “BIG WIN” and proof there is no legal check on his power.

    This year, Trump’s lawyers have confidently gone to Supreme Court with emergency appeals when lower-court judges have stood in their way. With few exceptions, they have won, often over dissents from the court’s three liberal Democrats.

    Many court scholars say they are disappointed but not surprised by the court’s response so far to Trump’s aggressive use of executive power.

    The Supreme Court “has been a rubber stamp approving Trump’s actions,” said UC Berkeley law Dean Erwin Chemerinsky. “I hope very much that the court will be a check on Trump. There isn’t any other. But so far, it has not played that role.”

    Roberts “had been seen as a Republican but not a Trump Republican. But he doesn’t seem interested or willing to put any limits on him,” said UCLA law professor Adam Winkler. “Maybe they think they’re saving their credibility for when it really counts.”

    Acting on his own, Trump moved quickly to reshape the federal government. He ordered cuts in spending and staffing at federal agencies and fired inspectors general and officials of independent agencies who had fixed terms set by Congress. He stepped up arrests and deportations of immigrants who are here illegally.

    But the court’s decisions on those fronts are in keeping with the long-standing views of the conservatives on the bench.

    Long before Trump ran for office, Roberts had argued that the Constitution gives the president broad executive authority to control federal agencies, including the power to fire officials who disagree with him.

    The court’s conservatives also think the president has the authority to enforce — or not enforce — immigration laws.

    That’s also why many legal experts think the year ahead will provide a better test of the Supreme Court and Trump’s challenge to the constitutional order.

    “Overall, my reaction is that it’s too soon to tell,” said William Baude, a University of Chicago law professor and a former clerk for Roberts. “In the next year, we will likely see decisions about tariffs, birthright citizenship, alien enemies and perhaps more, and we’ll know a lot more.”

    In early September, Trump administration lawyers rushed the tariffs case to the Supreme Court because they believed it was better to lose sooner rather than later.

    Treasury Secretary Scott Bessent said the government could face up to a $1-trillion problem if the court delayed a decision until next summer and then ruled the tariffs were illegal.

    “Unwinding them could cause significant disruption,” he told the court.

    The Constitution says tariffs, taxes and raising revenue are matters for Congress to decide. Through most of American history, tariffs funded much of the federal government. That began to change after 1913 when the 16th Amendment was adopted to authorize “taxes on incomes.”

    Trump has said he would like to return to an earlier era when import taxes funded the government.

    “I always say ‘tariffs’ is the most beautiful word to me in the dictionary,” he said at a rally after his inauguration in January. “Because tariffs are going to make us rich as hell. It’s going to bring our country’s businesses back that left us.”

    While he could have gone to the Republican-controlled Congress to get approval, he imposed several rounds of large and worldwide tariffs acting on his own.

    Several small businesses sued and described the tariffs as “the largest peacetime tax increase in American history.”

    As for legal justification, the president’s lawyers pointed to the International Emergency Economic Powers Act of 1977. It authorizes the president to “deal with any unusual or extraordinary threat … to the national security, foreign policy or economy of the United States.”

    The law did not mention tariffs, taxes or duties but said the president could “regulate” the “importation” of products.

    Trump administration lawyers argue that the “power to ‘regulate importation’ plainly encompasses the power to impose tariffs.” They also say the court should defer to the president because tariffs involve foreign affairs and national security.

    They said the president invoked the tariffs not to raise revenue but to “rectify America’s country-killing trade deficits and to stem the flood of fentanyl and other lethal drugs across our borders.”

    In response to lawsuits from small businesses and several states, judges who handle international trade cases ruled the tariffs were illegal. However, they agreed to keep them in place to allow for appeals.

    Their opinion relied in part on recent Supreme Court’s decisions which struck down potentially far-reaching regulations from Democratic presidents on climate change, student loan debt and COVID-19 vaccine requirements. In each of the decisions, Roberts said Congress had not clearly authorized the disputed regulations.

    Citing that principle, the federal circuit court said it “seems unlikely that Congress intended to … grant the president unlimited authority to impose tariffs.”

    Trump said that decision, if allowed to stand, “could literally destroy the United States of America.” The court agreed to hear arguments in the tariffs case on Nov. 5.

    A victory for Trump would be “viewed as a dramatic expansion of presidential power,” said Washington attorney Stephanie Connor, who works on tariff cases. Trump and future presidents could sidestep Congress to impose tariffs simply by citing an emergency, she said.

    But the decision itself may have a limited impact because the administration has announced new tariffs last week that were based on other national security laws.

    Last month, Trump administration lawyers asked the Supreme Court to rule during the upcoming term on the birthright citizenship promised by the 14th Amendment of 1868.

    They did not seek a fast-track ruling, however. Instead, they said the court should grant review and hear arguments on the regular schedule early next year. If so, a decision would be handed down by late June.

    The amendment says: “All persons born or naturalized in the United States and subject to the jurisdiction thereof are citizens of the United States.”

    And in the past, both Congress and the Supreme Court have agreed that rule applies broadly to all children who are born here, except if their parents are foreign ambassadors or diplomats who are not subject to U.S. laws.

    But Trump Solicitor Gen. D. John Sauer said that interpretation is mistaken. He said the post-Civil War amendment was “adopted to grant citizenship to freed slaves and their children, not to the children of illegal aliens, birth tourists and temporary visitors.”

    Judges in three regions of the country have rejected Trump’s limits on the citizenship rule and blocked it from taking effect nationwide while the litigation continues.

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    David G. Savage

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  • Video: Taiwan Screw Suppliers Feel Impact of Trump’s Tariffs

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    new video loaded: Taiwan Screw Suppliers Feel Impact of Trump’s Tariffs

    transcript

    transcript

    Taiwan Screw Suppliers Feel Impact of Trump’s Tariffs

    Screws from Taiwan hold together countless everyday American goods. But Trump’s tariffs are threatening the island as a manufacturing leader of the tiny, yet essential, components.

    “Our product range are mainly for residential area, from your home, from the roof, and then also from your backyard.”

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    Shawn Paik and An Rong Xu

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  • Supreme Court To Quickly Consider If President Trump Has Power To Impose Sweeping Tariffs – KXL

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    WASHINGTON (AP) — The Supreme Court is granting an unusually quick hearing on whether President Donald Trump has the power under federal law to impose sweeping tariffs.

    The justices agreed Tuesday to hear the case in November, lightning fast by the usual standards of the nation’s highest court.

    The small businesses and states that challenged the tariffs in court also agreed to the fast timetable.

    They say Trump illegally used emergency powers to set import taxes on nearly every country in the world, nearly driving their businesses to bankruptcy.

    Two lower courts have found most of the tariffs were illegally imposed, though a 7-4 appeals court has left them in place for now.

    More about:


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    Grant McHill

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  • Trump urges Supreme Court to uphold his worldwide tariffs in a fast-track ruling

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    President Trump has asked the Supreme Court for a fast-track ruling that he has broad power acting on his own to impose tariffs on products coming from countries around the world.

    Despite losing in the lower courts, Trump and his lawyers have reason to believe they can win in the Supreme Court. The six conservative justices believe in strong presidential power, particularly in the area of foreign policy and national security.

    In a three-page appeal filed Wednesday evening, they proposed the court decide by next Wednesday to grant review and to hear arguments in early November.

    They said the lower court setbacks, unless quickly reversed, “gravely undermine the President’s ability to conduct real-world diplomacy and his ability to protect the national security and economy of the United States.”

    They cited Treasury Secretary Scott Bessent’s warning about the potential for economic disruption if the court does not act soon.

    “Delaying a ruling until June 26 could result in a scenario in which $750 billion-$1 trillion have already been collected and unwinding them could cause significant disruption,” he wrote.

    Trump and his tariffs ran into three strong arguments in the lower courts.

    First, the Constitution says Congress, not the president, has the power “to lay and collect Taxes, Duties, Imposts and Excises,” and a tariff is an import tax.

    Second, the 1977 emergency powers law that Trump relies on does not mention tariffs, taxes or duties, and no previous president has used it to impose tariffs.

    And third, the Supreme Court has frowned on recent presidents who relied on old laws to justify bold, new, costly regulations.

    So far, however, the so-called “major questions” doctrine has been used to restrict Democratic presidents, not Republicans.

    Three years ago, the court’s conservative majority struck down a major climate change regulation proposed by Presidents Obama and Biden that could have transformed the electric power industry on the grounds it was not clearly based on the Clean Air Act of the 1970s.

    Two years ago, the court in the same 6-3 vote struck down Biden’s plan to forgive hundreds of millions of dollars in student loans. Congress had said the Education Department may “waive or modify” monthly loan payments during a national emergency like the COVID-19 pandemic, but it did not say the loans may be forgiven, the court said. Its opinion noted the “staggering” cost could be more than $500 billion.

    The impact of Trump’s tariffs figures to be at least five times greater, a federal appeals court said last week in ruling them illegal.

    In a 7-4 vote, the federal circuit court cited all three arguments in ruling Trump had exceeded his legal authority.

    “We conclude Congress, in enacting the International Emergency Economic Powers Act, did not give the president wide-ranging authority to impose tariffs,” they said.

    But the outcome was not a total loss for Trump. The appellate judges put their decision on hold until the Supreme Court rules. That means Trump’s tariffs are likely to remain in effect for many months.

    Trump’s lawyers were heartened by the dissent written by Judge Richard Taranto and joined by three others.

    He argued that presidents are understood to have extra power when confronted with foreign threats to the nation’s security.

    Taranto called the 1977 law “an eyes-open congressional grant of broad emergency authority in this foreign-affairs realm” that said the president may “regulate” the “importation” of dangerous products including drugs coming into this country.

    Citing other laws from that era, he said Congress understood that tariffs and duties are a “common tool of import regulation.”

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    David G. Savage

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  • At Labor Day rallies, speakers decry Trump

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    Thousands of union members and others participated in marches, rallies and picnics on Labor Day throughout the Los Angeles region and across the country on Monday, decrying actions by the Trump administration that they say weaken unions and harm workers while strengthening and emboldening major corporations and the wealthy.

    A White House proclamation Monday said President Trump’s actions are “reversing decades of neglect and finally putting American Workers first” by rewriting tax laws and creating a better economic climate for businesses.

    His critics say he is undermining, in historic ways, the government and labor-union infrastructure established to protect workers — and therefore hurting individual workers.

    Participants at a massive Wilmington rally and parade — organized by the Los Angeles County Federation of Labor — united over a common foe: Trump.

    “Donald Trump has gone too far,” said state Sen. Maria Elena Durazo (D-Los Angeles), as she and others linked typical Labor Day rhetoric directly to immigration raids. “On this Labor Day, we have an American president who takes parents from their children and workers from their jobs.”

    The raids are no longer about border security, Durazo said, but “about breaking the backbone of our economy and terrorizing families.”

    ”Fighting for workers’ rights means fighting for immigrant rights,” said Angelica Salas, the executive director of the immigrant advocacy group CHIRLA.

    The Trump administration, meanwhile, marked Labor Day by extolling the American worker and calling attention to new trade policies — including widespread tariffs — intended to spur a return of manufacturing to the United States.

    “Every day, my Administration is restoring the dignity of labor and putting the American worker first,” Trump said in a Labor Day proclamation. “We are making it easier to buy American and hire American, breathing new life into our manufacturing cities, and securing fair trade deals that protect our jobs and reward our productivity. … Under my leadership, we are bringing jobs back to America — and those jobs are going to American-born workers.”

    Tariff chaos at port

    The effect of tariffs and their uneven rollout is widely debated, including within Trump’s Republican Party, although a Congress controlled by Republicans has not acted to stop them.

    Trump’s tariffs — and the threat of them — have triggered unpredictable boom-and-bust cycles at L.A.’s ports, Mickey Chavez, president of the International Longshore and Warehouse Union Southern California District Council, said Monday.

    Standing with his French bulldog Gucci under an ILWU tent after the Wilmington parade, the union foreman described how the mood has fluctuated dramatically at the nearby union hall where ILWU members wait for work.

    “It’s been chaotic, more than anything, with the tariffs,” Chavez said as smoke from a barbecue a few tents over curled past his ILWU beret. “Either the workers really get a lot of work because they’re trying to beat the tariffs, or then [Trump] sets out more tariffs and the work slows down.”

    The uncertainty has made it difficult for workers to plan, particularly those at the lowest level, who are most affected by slowdowns.

    “If he sends out a tweet or makes a decision, we never know if there’s going to be work or not, so it’s been in flux,” the fourth-generation ILWU member said.

    Chavez’s great-grandfather first joined the union in the 1940s and his family has worked at the ports ever since. But he has never experienced anything like this before, where work is so dependent on the whims of a single man, he said.

    Trump bans most federal bargaining

    On the same day as his Labor Day proclamation, Trump issued an order banning collective bargaining at the International Trade Administration and the Patent and Trademark Office within the Commerce Department; the National Oceanic and Atmospheric Administration’s National Environmental Satellite, Data and Information Service, and the National Weather Service; as well as at NASA and the U.S. Agency for Global Media.

    Trump cited national security concerns as providing legal grounds for the unilateral edict. The latest action follows a March order outlawing collective bargaining for a majority of the federal workforce, citing the same justification.

    Unions immediately filed suit, putting Trump’s action on hold.

    A study from the left-leaning Center for American Progress estimated that Trump’s orders have stripped 82% of civilian federal workers of their right to bargain. The total number of workers whose contracts Trump has abrogated exceeds 1 million, an estimated one-fifteenth of American workers covered by a union contract.

    In addition, Trump fired National Labor Relations Board member Gwynne Wilcox, although the National Labor Relations Act stipulates that board members serve for five years and her term was not to end until August 2028. Her dismissal has paralyzed the labor board by leaving it without a quorum. The U.S. Supreme Court declined to stop her dismissal as part of ongoing litigation.

    At least one speaker at the Wilmington rally spoke of the need for organized labor to support California Gov. Gavin Newsom’s efforts to redraw state congressional districts to flip as many as five seats from Republican to Democrat — a strategy to offset actions taken in Texas — urged on by Trump — to do exactly the opposite.

    Labor groups have already put millions of dollars behind it and have committed to help lead voter-mobilization efforts.

    Unlike in Texas, Newsom’s plan must be approved by voters, who will have the opportunity to support it by voting for Proposition 50.

    Passage of the measure at the ballot box is essential, state Assemblyman Mark Gonzalez (D-Los Angeles) said at the Wilmington event, because Trump is already “destroying the fabric of the labor movement” months into his second term.

    California Republicans point out that the measure unravels reforms meant to make California districts more representative and competitive. Opponents of the retaliatory gerrymander include former California Republican Gov. Arnold Schwarzenegger.

    Festive vibes

    In Wilmington, although the thousands of union members and allies were fired up, the rally and parade retained a festive vibe.

    On a truck at the front of the procession, leaders of local and state labor groups danced with elected officials as Bob Marley and the Wailers sang about standing up for rights over a loudspeaker.

    Hammerhead cranes at the nearby port facilities dotted the horizon as classic cars turned down E Street, and posters and T-shirts in the crowd advertised membership in an alphabet soup of union locals.

    Children sharing space with political fliers in oversized wagons blew bubbles, and teenage girls from a local high school twirled pom-poms.

    At the helm of a massive shiny black truck bearing the Teamsters insignia, a driver clenched a cigar between his teeth as he steered with one hand and pulled an overhead horn with the other. Representatives from the local branch of the sheet metal workers union carried a carefully crafted, welded brown California bear in the back of their truck.

    Alongside carpenters and nurses and dockworkers, there were also representatives from a cadre of entertainment industry unions representing actors, writers and production workers.

    Rallies across the Southland and the country were united under the banner of May Day Strong, a partnership of labor, political and environmental organizations. The targets of the rallies included federal agencies carrying out immigration raids, including U.S. Immigration and Customs Enforcement.

    “The billionaires continue to wage a war on working people, with their cronies in the administration, ICE and law enforcement backing up their attacks,” according to the organizers’ toolkit. “This Labor Day we will continue to stand strong, fighting for public schools over private profits, healthcare over hedge funds, shared prosperity over billionaire-bought politics.”

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    Julia Wick, Howard Blume

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  • Video: How Tariffs Will Affect This Unique Cheese

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    new video loaded: How Tariffs Will Affect This Unique Cheese

    By Eshe Nelson, Nikolay Nikolov, Laura Salaberry, Emli Bendixen and Jon Hazell

    Stilton is a special type of blue cheese that can be made in only three English counties. There are just four producers of Stilton left, but this one was crowned best cheese in the world, according to one of the industry’s top awards last year. Eshe Nelson, a business reporter for The New York Times, went to Clawson Farms, the producer of the award-winning Stilton, which is trying to expand its business in the United States, despite the higher costs imposed by the Trump administration’s tariff policy.

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    Eshe Nelson, Nikolay Nikolov, Laura Salaberry, Emli Bendixen and Jon Hazell

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