Wholesale prices dropped in August, coming in significantly below what economists had expected, and led to a new record high for the S&amp;P 500 on Wednesday.
The Bureau of Labor Statistics reported that the Producer Price Index (PPI) came in at 2.6% year-over-year, far below the 3.3% rise that was forecasted, according to <a href="https://www.barrons.com/articles/ppi-wholesale-inflation-data-august-83ddcabb">Barron’s</a>. Wholesale prices dropped 0.1% on a monthly basis, which was also better than what economists were expecting, with the Dow Jones predicting a 0.3% rise, CNBC <a href="https://www.cnbc.com/2025/09/10/ppi-inflation-august-2025-.html">reported</a>.
“Boy, I’m surprised — real progress here! 2.6% on year-over-year headline. We were expecting 3.3%!” <a href="https://x.com/RapidResponse47/status/1965761591179182133">said</a> CNBC’s Rick Santelli.
CNBC host Becky Quick <a href="https://x.com/RapidResponse47/status/1965762391620391046">added</a> that the inflation report was “a real shocker.”
The White House took a victory lap after the report from the Bureau of Labor Statistics, blasting “the so-called ‘experts’” who had predicted for months that President Donald Trump’s wide-ranging tariffs would cause prices to skyrocket.
“The latest PPI report shows there is no inflation — wholesale prices fell and smashed economists’ expectations. President Trump has defeated Joe Biden’s inflation crisis while successfully implementing powerful tariffs, which haven’t hiked prices like the so-called ‘experts’ claimed,” said White House Press Secretary Karoline Leavitt. “This is yet another reason for Jerome ‘Too Late’ Powell to cut the rates immediately to make everyday life more affordable for Americans.”
In July, the PPI increased by 0.7%, which was the highest month-over-month increase since Trump took office for his second term in January.
The S&amp;P 500 surged to a new record high, climbing another 0.4% after the report came out on Wednesday, according to <a href="https://www.cnbc.com/2025/09/09/stock-market-today-live-updates.html">CNBC</a>. Computer software company Oracle led the S&amp;P 500 rally, gaining 40% after the company released a surprising forecast, <a href="https://finance.yahoo.com/news/oracle-stock-soars-after-ceo-says-ai-fueled-cloud-revenue-set-to-jump-to-144-billion-154530523.html?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAI1-i2sXMCo1_r6MGzX2KKW5v4fhoklORnC7L3nznCj71xQWTri54REsRQfjHKpN96sIT2D3X-mIe33cajfQNBG95b7PFPsaXSKelDPTr0nuCMK9FI1ly6yzT1YndXcDiYnJomDW8MBy2nenY0lb0OflSZ1kRI-fPMkS8cSzcexB" target="_blank" rel="noopener">stating</a> that it expects AI-fueled revenue to reach $144 billion by its 2030 fiscal year.
The August inflation report was published just one week before the Federal Reserve Board of Governors meets for its September gathering, as signs indicate that policymakers may lower interest rates after months of pressure from Trump. Fed Chair Jerome Powell <a href="https://www.dailywire.com/news/fed-chair-jerome-powell-hints-at-possible-rate-cut-wall-street-cheers">hinted</a> last month that a rate cut could happen under current economic conditions.
Prices under Trump’s tariffs have continued to defy predictions from economists as American consumers have seen little to no effect on overall prices after the president imposed duties on dozens of countries, including America’s top trading partners. The tariffs, however, will be <a href="https://www.dailywire.com/news/scotus-agrees-to-hear-case-on-trumps-tariffs-after-admin-asks-for-swift-action">considered</a> by the Supreme Court, as the administration warns that a ruling striking down the tariffs would have “ruinous” consequences for the U.S. economy.

Donald Trump

‘Real Progress Here’: Wholesale Inflation Drops In August, Stunning Economists

Economy

Inflation

Politics

Stock Market

Tariffs

Trump Administration

The Supreme Court on Tuesday agreed to quickly take up a case on President Donald Trump&#8217;s wide-ranging tariffs, setting up a major decision on one of the biggest policies of Trump&#8217;s second term, NBC News <a href="https://www.nbcnews.com/politics/supreme-court/supreme-court-agrees-consider-whether-trumps-tariffs-are-legal-rcna229069">reported</a>.
The Supreme Court will hear the case after the U.S. Court of Appeals for the Federal Circuit ruled late last month that Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports from dozens of countries. Last week, the Trump administration <a href="https://www.dailywire.com/news/trump-asks-scotus-to-take-swift-action-to-save-his-tariffs">asked</a> the Supreme Court to begin hearing arguments in the case as soon as November, arguing that the Appeals Court&#8217;s decision “gravely undermines the President’s ability to conduct real-world diplomacy and his ability to protect the national security and economy of the United States.”
The Supreme Court agreed to enter a streamlined process and will begin hearing oral arguments the first week of November.
Treasury Secretary Scott Bessent <a href="https://www.dailywire.com/news/supreme-court-ruling-against-trump-tariffs-could-trigger-1-trillion-economic-disaster-bessent-warns">warned</a> on Monday that if Trump&#8217;s tariffs are stopped, the United States would have to refund around $1 trillion to importers, a development that Bessent said would &#8220;cause significant disruption&#8221; to the U.S. economy. U.S. Solicitor General D. John Sauer agreed, saying, “With tariffs, we are a rich nation; without tariffs, we are a poor nation… The economic consequences would be ruinous.”
Trump also blasted the decision from the Appeals Court, arguing that “it would be a total disaster for the Country” if his tariffs were rescinded.
“If allowed to stand, this Decision would literally destroy the United States of America,” he added.
The Appeals Court delayed implementation of its order until October 14, giving the Trump administration time to appeal to the Supreme Court.
Many of Trump&#8217;s tariffs went into effect in early August before the the U.S. Court of Appeals stepped in and ruled that Trump does not have the authority to impose them. The Appeals Court ruled, “Absent a valid delegation by Congress, the President has no authority to impose taxes. Given these considerations, we conclude Congress, in enacting IEEPA, did not give the President wide-ranging authority to impose tariffs of the nature of the Trafficking and Reciprocal Tariffs simply by the use of the term ‘regulate … importation.’”
“The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution,” the court added.
The issue centers on the IEEPA, which was enacted in 1977 and allows the president to impose tariffs on any import to the United States after declaring a national emergency. On April 2, Trump “<a href="https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/" target="_blank" rel="noopener">declared</a> that foreign trade and economic practices have created a national emergency,” adding that he would impose “responsive tariffs to strengthen the international economic position of the United States and protect American workers.”
If Trump loses at the Supreme Court, his administration has been looking into other ways to impose tariffs, NBC News <a href="https://www.nbcnews.com/politics/trump-administration/white-house-exploring-keep-trumps-tariffs-supreme-court-strikes-rcna229175">reported</a>. Trump could rely on laws under the Trade Expansion Act of 1962, which gives the president power to levy some tariffs. Some of the president&#8217;s tariffs already in effect fall under this law and would not be affected by a Supreme Court decision shooting down Trump&#8217;s tariffs under the IEEPA.

SCOTUS Agrees To Hear Case On Trump’s Tariffs After Admin Asks For ‘Swift’ Action

Courts

Supreme Court

Treasury Secretary Scott Bessent warned that the U.S. could be on the hook for a staggering $1 trillion in tariff refunds if the Supreme Court sides against President Trump’s trade agenda — a decision that could cripple the Treasury and kneecap America’s economic leverage.
At the heart of the legal battle is the Trump administration’s broad use of tariffs under the International Emergency Economic Powers Act (IEEPA), particularly the so-called “reciprocal tariffs” that have imposed sweeping levies on imports. Two lower courts have declared the tariffs unconstitutional, contending they overstepped executive authority and amounted to taxation without congressional approval.
Bessent made it clear: If the Supreme Court rules against the administration, the U.S. government will be forced to refund as much as $1 trillion to importers, a move he called “terrible” for the Treasury and the economy, the New York Post <a href="https://nypost.com/2025/09/09/business/us-could-be-forced-to-refund-1-trillion-if-supreme-court-overturns-trumps-tariffs/">reported</a>.
“We’d have to do it,” Bessent <a href="https://www.nbcnews.com/meet-the-press/meet-press-september-7-2025-n1312693">told</a> NBC’s “Meet the Press” on Sunday. “But it would be terrible.”
According to court filings, the administration has already collected tens of billions in tariff revenue since Trump’s “Liberation Day” in April, with $30 billion in July alone, a 242% spike year-over-year. The total potentially owed could reach up to $1 trillion if the Supreme Court delays action.
Bessent did not mince words about the dangers of reversing the tariffs. “Unwinding them could cause significant disruption,” he said, emphasizing that economic benefits such as record stock market highs, increased capital expenditures, and strong GDP growth are largely due to the Trump tariff strategy.
Solicitor General D. John Sauer echoed Bessent, writing: “With tariffs, we are a rich nation; without tariffs, we are a poor nation… The economic consequences would be ruinous.”
Bessent was pressed repeatedly on “Meet the Press” on whether the administration would honor the court’s ruling if the tariffs were struck down.
“I mean, there’s no ‘be prepared,’” he said. “If the court says it, we’d have to do it.”
He cautioned that such a refund would not only harm the nation financially but also undermine the U.S. negotiating position globally, slow the progress made on rebalancing trade, and potentially reverse the economic momentum Trump has established.
Bessent dismissed complaints from corporations like John Deere and Nike, who blame the tariffs for profit losses and layoffs, calling them cherry-picked examples. He emphasized that Treasury is hearing a “record amount” of positive feedback from companies that support the tariffs.
Bessent rejected claims from Goldman Sachs and The New York Times that consumers are bearing the brunt, insisting that many foreign manufacturers are “eating the tariffs,” and that American economic strength is a direct result of the policy.
“This isn’t about the dollars,” Bessent said. “This is about balance. The dollars are an after amount.”
Bessent and President Trump see the court battle not just as a legal fight, but as a referendum on America’s right to defend its economic sovereignty.

US Treasury Secretary Scott Bessent Interview

Supreme Court Ruling Against Trump Tariffs Could Trigger $1 Trillion Economic Disaster, Bessent Warns

Bessent Warns Supreme Court Ruling Against Trump Tariffs Could Trigger $1 Trillion Economic Disaster

Scott Bessent

The Trump administration urged the Supreme Court on Wednesday to quickly review a lower court ruling that <a href="https://www.dailywire.com/news/appeals-court-strikes-down-sweeping-trump-tariffs-setting-up-battle-at-supreme-court">invalidated</a> the president’s tariffs.
President Donald Trump wants the Supreme Court to begin hearing arguments in the case as soon as November, a major request for the justices who typically wait until as late as next summer to make a decision, CNBC <a href="https://www.cnbc.com/2025/09/03/trump-tariffs-trade-supreme-court.html">reported</a>. The Trump administration argues that the 7-4 U.S. Court of Appeals ruling “gravely undermines the President’s ability to conduct real-world diplomacy and his ability to protect the national security and economy of the United States.”
&#8220;That decision casts a pall of uncertainty upon ongoing foreign negotiations that the President has been pursuing through tariffs over the past five months, jeopardizing both already-negotiated framework deals and ongoing negotiations,&#8221; the administration added in its filing. &#8220;Few cases have so clearly called out for this Court’s swift resolution.&#8221;
Last week, the U.S. Court of Appeals for the Federal Circuit ruled that Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA) to levy tariffs.
“Absent a valid delegation by Congress, the President has no authority to impose taxes. Given these considerations, we conclude Congress, in enacting IEEPA, did not give the President wide-ranging authority to impose tariffs of the nature of the Trafficking and Reciprocal Tariffs simply by the use of the term ‘regulate … importation,’” the ruling stated.
“The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution,” the court added.
The <a href="https://www.congress.gov/crs-product/R45618">IEEPA</a>, enacted in 1977, allows the president to impose tariffs on any import to the United States after declaring a national emergency. On April 2, Trump &#8220;<a href="https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/">declared</a> that foreign trade and economic practices have created a national emergency,&#8221; adding that he would impose &#8220;responsive tariffs to strengthen the international economic position of the United States and protect American workers.&#8221;
The appeals court delayed implementation of its order until October 14, giving the Trump administration time to appeal to the Supreme Court. If the ruling goes into effect, Trump&#8217;s sweeping &#8220;Liberation Day&#8221; tariffs that hit numerous countries around the world would be rescinded, dealing a significant blow to one of the president&#8217;s top priorities during his second term.
Attorney Jeffrey Schwab, whose libertarian-leaning firm Liberty Justice Center represented the plaintiffs in the case, said he is &#8220;confident&#8221; that the legal arguments against Trump&#8217;s tariffs &#8220;will prevail.&#8221;
&#8220;Both federal courts that considered the issue agreed that IEEPA does not give the President unchecked tariff authority,&#8221; Schwab said. A federal trade court also ruled in May that Trump did not have the authority to impose his &#8220;Liberation Day&#8221; tariffs.
Trump ripped the “Highly Partisan Appeals Court” following the decision last week, arguing that &#8220;it would be a total disaster for the Country&#8221; if his tariffs were rescinded.
&#8220;If allowed to stand, this Decision would literally destroy the United States of America,&#8221; he added.

Trump Asks SCOTUS To Take ‘Swift’ Action To Save His Tariffs

Executive

WASHINGTON (Reuters) -U.S. President Donald Trump said on Monday that India has offered to reduce its tariffs on U.S. goods to zero, even as Indian Prime Minister Narendra Modi was making public shows of solidarity with Chinese and Russian leaders in the face of trade pressure from Washington.
While calling the U.S. relationship with India &#8220;one sided,&#8221; Trump wrote on his Truth Social platform: &#8220;They have now offered to cut their Tariffs to nothing, but it’s getting late. They should have done so years ago.&#8221;
The Indian Embassy in Washington did not immediately respond to Trump&#8217;s comments, which follow the implementation of total duties as high as 50% on Indian goods that have raised questions about the future of the U.S.-India relationship.
Trump&#8217;s remark came as Modi was in China for a summit of more than 20 leaders of non-Western countries of the Shanghai Cooperation Organisation, a China-backed initiative given renewed impetus by Trump&#8217;s global tariff offensive.
At the summit, Chinese President Xi Jinping pressed his vision for a new global security and economic order that prioritizes the &#8220;Global South,&#8221; in a direct challenge to the U.S.
The U.S.-India relationship has strengthened in recent years, including during Trump&#8217;s first term, given shared concerns about China&#8217;s growing power, but Trump threatened the tariffs on India after it refused to stop buying Russian oil in defiance of his efforts to end Moscow&#8217;s war in Ukraine.
In China, in an image designed to convey solidarity, Putin and Modi were shown holding hands as they walked jovially toward Xi before the summit opened. The three men stood shoulder-to-shoulder, laughing and surrounded by interpreters.
Beijing has used the summit to mend ties with New Delhi. Modi, visiting China for the first time in seven years, and Xi agreed on Sunday their countries are development partners, not rivals, and discussed ways to improve trade.
The U.S. State Department and White House did not immediately respond to requests for comment on the meetings in China.
(Reporting by Jasper Ward and David Brunnstrom; editing by Scott Malone, Rod Nickel)

FILE PHOTO: Indian Prime Minister Narendra Modi meets with U.S. President Donald Trump at the White House

Trump Says His Tough Trade Stance Is Working In Stand-Off With India

India

Trade War

A federal appeals court on Friday ruled against many of President Donald Trump’s tariffs, saying the president abused his authority under the emergency powers he cited to enact them.
The U.S. Court of Appeals for the Federal Circuit <a href="https://storage.courtlistener.com/recap/gov.uscourts.cafc.23105/gov.uscourts.cafc.23105.159.0_1.pdf">ruled</a> 7-4 that Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA). While the court struck down most of Trump’s sweeping tariff regime, it delayed implementation of its order until October 14 to give time for the administration to appeal the ruling to the Supreme Court.
“We are unpersuaded by the Government’s argument that it is ‘particularly inappropriate to construe narrowly a delegation of power in the arena of foreign affairs and national security,’” the court wrote. “While the President of course has independent constitutional authority in these spheres, the power of the purse (including the power to tax) belongs to Congress.”
“Absent a valid delegation by Congress, the President has no authority to impose taxes. Given these considerations, we conclude Congress, in enacting IEEPA, did not give the President wide-ranging authority to impose tariffs of the nature of the Trafficking and Reciprocal Tariffs simply by the use of the term ‘regulate … importation,’” the ruling states.
The decision sets up the possibility that the United States may have to pay back billions of dollars of duties that have been taken in under Trump’s tariff regime, according to <a href="https://www.politico.com/news/2025/08/29/federal-appeals-court-strikes-down-major-chunk-of-trumps-tariffs-00537643">Politico</a>.
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The ruling could nullify sweeping tariffs the president placed on dozens of countries as part of his Liberation Day tariff announcement. It would also rescind tariffs that Trump has unilaterally placed on Canada, China, and Mexico during ongoing negotiations around immigration and drug trafficking.
Trump responded to the ruling in a <a href="https://truthsocial.com/@realDonaldTrump/posts/115114339832960282">post</a> on Truth Social, blaming a “Highly Partisan Appeals Court” for an “incorrectly” decided case. The president said that “it would be a total disaster for the Country” if his tariffs were canceled.
“The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else,” wrote Trump. “If allowed to stand, this Decision would literally destroy the United States of America.”
The appeals court ruling follows a ruling from a federal trade court in May that found similarly that Trump had overstepped his bounds in invoking the IEEPA.
The appeals court ruling noted that never before had the IEEPA been invoked to impose tariffs on imports.
“The invocation of IEEPA to impose tariffs on nearly every country in the world is undoubtedly a significant departure from these previous invocations,” it said, before adding that the lack of precedent is an indication that the president may have overstepped.

Appeals Court Strikes Down Sweeping Trump Tariffs, Setting Up Battle At Supreme Court

Federal Court Strikes Down Sweeping Trump Tariffs, Setting Up Battle At Supreme Court

U.S.

President Donald Trump warned Monday that countries imposing digital taxes on American tech companies will face significant tariffs if they don&#8217;t remove them.
Without naming a specific country, Trump said that some nations had given a “complete pass” to China’s tech companies while penalizing American competitors. Some countries, like Canada and India, have already backed away from digital taxes after pressure from the Trump administration. 
“As the President of the United States, I will stand up to Countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” Trump wrote on Truth Social. 
“This must end, and end NOW! With this TRUTH, I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country&#8217;s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips,” he added. “America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer. Show respect to America and our amazing Tech Companies or, consider the consequences!”
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In June, Canada <a href="https://www.dailywire.com/news/canada-caves-digital-tax-on-u-s-tech-scrapped-after-trump-pressure">rescinded</a> its Digital Service Tax as part of ongoing trade negotiations with the United States. The tax would have hit American tech companies like Amazon, Google, Meta, and Apple hard, and could have cost American businesses up to $2.3 billion annually. 
India also <a href="https://www.reuters.com/world/india/india-proposes-remove-equalisation-levy-digital-services-government-source-says-2025-03-25/">backed away</a> from a 6% digital advertising tax in April after pressure from American officials. 
Many European countries, like France and Switzerland, have <a href="https://taxfoundation.org/data/all/eu/digital-services-taxes-europe/" target="_blank" rel="noopener">implemented</a> digital taxes, while others, like Belgium and the Netherlands, are considering implementing them. France taxes major tech companies 3% on revenue from digital services and targeted advertising. 
In the trade deal between the European Union and the United States, both entities agreed to address “unjustified digital trade barriers.” 
“In that respect, The European Union confirms that it will not adopt or maintain network usage fees,” the framework said. “The United States and the European Union will not impose customs duties on electronic transmissions.”
It is unclear if the agreement will address digital service taxes.

President Trump Signs Executive Orders In The Oval Office Of The White House

Trump To Foreign Governments: Drop Taxes On Big Tech Or Face ‘Consequences’

Trump To Foreign Governments: Drop Taxes On Big Tech Or Face 'Consequences'

China

European Union

Taxes

Technology

President Donald Trump said on Friday his administration will conduct a &#8220;major&#8221; tariff investigation on furniture entering the United States, a step toward imposing higher duties on a sector already seeing tariff-fueled price increases.
&#8220;Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined,&#8221; Trump said in a post on Truth Social.
Furniture retailer RH &#8212; previously known as Restoration Hardware &#8212; shares fell 7.5% in after-hours trading on Trump&#8217;s announcement.
Trump said the investigation will be completed within the next 50 days but other national security probes have taken significantly longer than that. A White House official confirmed that it would be conducted under the Section 232 national security statute.
The probe could serve as a backstop legal basis for existing tariffs if a federal appeals court strikes down &#8220;reciprocal&#8221; duties that Trump imposed on a broad range of U.S. trading partners in April, as well as import taxes imposed in February against China, Canada and Mexico.
&#8220;This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union,&#8221; Trump said.
Furniture and wood products manufacturing &#8212; which employed 1.2 million people in 1979 &#8212; has fallen from 681,000 in 2000 to 340,000 today, according to government statistics.
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The United States imported about $25.5 billion in furniture in 2024, up 7% over 2023, with about 60% of those imports coming from Vietnam and China, according to Furniture Today, a trade publication.
New tariffs on imports from furniture-producing countries helped push up consumer prices for home furnishings by a steep 0.7% in July, according to Commerce Department data, though overall consumer price inflation was restrained by lower gasoline prices.
The American Home Furnishings Alliance, a trade group representing domestic furniture manufacturers and importers, including many companies that do both, had no immediate comment on Trump&#8217;s announcement.
But the High Point, North Carolina-based AHFA in April led an industry coalition in opposing new tariffs under Trump&#8217;s ongoing Section 232 investigation into lumber and wood products imports.
&#8220;As a strictly legal matter, there is no rational relationship between imports of wood products or furniture and the national security of the United States,&#8221; the group said in written comments to the Commerce Department.
&#8220;Second, no amount of tariffs will bring back American furniture manufacturing back to its prior levels. Tariffs will harm manufacturing still being done in the United States.&#8221;
Furniture would be the latest imported products targeted for a national security investigation by the Trump administration. On Thursday, it announced a national security probe into imported wind turbines and has previously targeted copper and other metals.
The department has opened numerous probes into the national security ramifications of imports of airplanes, semiconductors, pharmaceuticals, heavy trucks, timber and lumber, critical minerals and drones.
The European Union won some relief from these potential new Section 232 tariffs as part of a joint statement on Thursday fleshing out their trade deal. The two sides agreed to limit any new U.S. tariffs on EU pharmaceuticals, lumber and semiconductors to the general 15% rate applied to most products from the bloc and will shield EU aircraft and parts, generic pharmaceuticals and drug chemical precursors from all new tariffs.
(Reporting by Ismail Shakil and Bhargav Acharya; editing by Ryan Patrick Jones, Caitlin Webber and Diane Craft)

Carpenter

Trump On Tariff Investigation Into Furniture Imports: Bring ‘Business Back’ To U.S.

Communist China

Global Politics

Vietnam

Canadian Prime Minister Mark Carney <a href="https://x.com/i/broadcasts/1BRKjgpmOdNGw">announced</a> on Friday that the country was suspending many of its retaliatory tariffs on the United States after the Trump administration &#8220;reaffirmed&#8221; its commitment to the U.S.-Mexico-Canada trade agreement (USMCA).
Canada is removing tariffs on most products from the United States, but will keep in place a 25% levy on U.S. steel, aluminum, and vehicles, since those products are not directly covered under the USMCA. In March, Canada placed a 25% tariff on many U.S. products after the Trump administration imposed a 25% duty on Canadian steel and aluminum.
Bloomberg was first to <a href="https://www.bloomberg.com/news/articles/2025-08-22/canada-to-drop-many-retaliatory-tariffs-in-olive-branch-to-trump">report</a> on Carney&#8217;s announcement, saying that the move appears to be the Canadian government extending an &#8220;olive branch&#8221; to President Donald Trump.
&#8220;As in previous trade disputes, Canada has implemented a series of retaliatory tariffs. Their objectives have been to protect Canadian workers and businesses and to incentivize a negotiated settlement with the United States. A few other countries followed suit,&#8221; Carney said. &#8220;In a positive and very important development earlier this month, just a few weeks ago, the United States reaffirmed a core commitment to our free trade agreement by reinforcing that those Canadian exports to the United States that are compliant with that agreement &#8230; will not be subject to &#8230; tariffs.&#8221;
&#8220;As a result of that decision by the United States, the actual U.S. tariff rate on Canadian goods is 5.6%,&#8221; Carney added. &#8220;Compare that to the 16% global average. That remains the lowest amongst all of the United States&#8217; trading partners, and more than 85% of Canada-U.S. trade is now tariff-free.&#8221;
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While Trump signed an order in late July imposing a 35% tariff on Canadian goods, the White House <a href="https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-amends-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border/#:~:text=ADDRESSING%20A%20NATIONAL%20EMERGENCY:%20Today,effect%20on%20August%201%2C%202025.">clarified</a> that most products are exempt under the USMCA, putting the actual average tariff rate on Canada at 5.6%. The prime minister said that Canada &#8220;has the best trade deal with the United States&#8221; as the numbers stand right now.
A White House official told <a href="https://www.cnbc.com/2025/08/22/canada-retaliatory-tariffs-trump-autos-steel.html">CNBC</a> that Canada&#8217;s move was &#8220;long overdue,&#8221; adding, “We look forward to continuing our discussions with Canada on the Administration’s trade and national security concerns.&#8221; A White House official, speaking on condition of anonymity, reportedly told Bloomberg that Commerce Secretary Howard Lutnick recently warned Canada about the retaliatory tariffs and encouraged them to drop the tariffs to set up a clear path to negotiations.
Canada backed down on its retaliatory tariffs after Carney spoke with Trump over the phone, a conversation that Carney called “productive and wide-ranging.” The USMCA, a deal that Trump negotiated during his first term in the White House, is set to be reviewed later this year, according to CNBC. Carney added during his press conference on Friday that Canada will continue to discuss &#8220;a new form of trade and security partnership with the United States.&#8221;

President Trump Travels To Bedminster For The Weekend

Trump Scores Trade Win As Canada Removes Several Retaliatory Tariffs On U.S.

Canada

Free Trade

Mark Carney

Target CEO Brian Cornell is stepping down next year after serving in the role for 10 years. The move comes as Target faces declining sales and a controversial public image, with boycotts coming from both sides of the political aisle.  
The Minneapolis-based company is passing the baton to chief operating officer Michael Fiddelke, who was selected in a unanimous board of directors vote, per an <a href="https://corporate.target.com/press/release/2025/08/target-appoints-michael-fiddelke-as-chief-executive-officer">announcement</a> made on Wednesday. Fiddelke, a 20-year veteran of the company, will take over beginning February 1, 2026.
“It is clear that Michael is the right leader to return Target to growth, refocus and accelerate the company’s strategy, and reestablish Target’s position as a leader in the highly dynamic and fast-moving retail environment,” Christine Leahy, lead independent director of Target’s Board of Directors, said.
Cornell had previously committed in 2022 to serve for three more years as CEO. He will now be the executive chair of the company&#8217;s board of directors. 
Sales were down 1% in the latest quarter compared to one year ago, the New York Post <a href="https://nypost.com/2025/08/20/business/target-ceo-brian-cornell-steps-down-after-10-years-as-retailer-fights-to-reverse-sliding-sales/">noted</a>, with a reported $25.2 billion total. This trend was blamed on a reduction in total merchandise offered. Profit for the quarter was $1.3 billion, which is a reduction of 19% compared to last year, according to the Post. 
The company blamed some of its financial woes on the economic uncertainties surrounding Trump’s tariff plan.
Earlier this year, Target announced it was rolling back its diversity, equity and inclusion (DEI) initiatives, following suit with other companies and retailers amid the changing political landscape. This pivot served to anger liberal activist groups, who called for <a href="https://www.theguardian.com/culture/2025/jul/20/black-americans-boycot-target-amazon-dei">boycotts</a>. RetailBrew <a href="https://www.retailbrew.com/stories/2025/08/18/target-s-revenues-track-closely-to-foot-traffic-q2-foot-traffic-is-down-3-1">reported</a> that these boycotts appeared to be working as foot traffic was down 3.1% in Q2.
In May, Cornell blamed the lackluster first-quarter sales in part on the company changes related to DEI. 
He <a href="https://www.cnbc.com/2025/05/21/target-tgt-q1-2025-earnings.html">said</a> the numbers declined due to “ongoing pressure in our discretionary business, plus five consecutive months of declining consumer confidence, tariff uncertainty, and the reaction to the updates we shared on belonging in January.” 
Despite making these changes, some conservatives are still boycotting Target for its past pride campaigns <a href="https://www.dailywire.com/news/target-to-offer-pride-merchandise-in-fewer-stores-after-backlash-against-tuck-friendly-swimsuit-sale-last-year">aimed at children</a>, saying the retailer’s policy changes were too little, too late.

Brian Cornell

Target CEO Steps Down As Sales Plummet And Boycotts From Both Sides Continue

Target CEO Steps Down After 10 Years Following Declining Sales, Boycotts From Both Sides

boycott

Business

Minneapolis

Target

U.S. Treasury Secretary Scott Bessent said he expects a big jump in revenues from sweeping tariffs imposed by President Donald Trump, and said the money would be used first to start paying down the federal debt, not to give rebate checks to Americans.
Bessent, speaking in an interview on CNBC&#8217;s &#8220;Squawk Box,&#8221; said he expected to substantially revise upward his earlier estimate of $300 billion in revenues from the tariffs, but declined to be more specific.
Bessent said he had not spoken with Trump about the idea of using funds from the tariffs to create a dividend for Americans, but stressed that both of them were &#8220;laser-focused&#8221; on paying down the debt.
&#8220;I&#8217;ve been saying that tariff revenue could be $300 billion this year. I&#8217;m going to have to revise that up substantially,&#8221; Bessent said. &#8220;We&#8217;re going to bring down the deficit to GDP. We&#8217;ll start paying down the debt, and then at that point that can be used as an offset to the American people.&#8221;
The U.S. economy could return to the &#8220;good, low-inflationary growth&#8221; of the 1990s, Bessent said, but he blamed higher interest rates for problems plaguing some pockets of the economy, singling out housing and lower-income households with high credit card debt.
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A cut in the Federal Reserve&#8217;s key interest rate &#8211; which Trump has continually pressed for &#8211; could help facilitate a boom or pickup in home building, which would help keep prices down in one to two years, he said.
The U.S. Census Bureau on Tuesday reported a small increase in groundbreaking for single-family homes and permits for future construction in July, even as high mortgage rates and economic uncertainty continued to hamper home purchases.
Trump&#8217;s wide-ranging import tariffs have kept the Federal Reserve from lowering interest rates this year, with most central bank policymakers wary of easing borrowing costs until they have more confidence the levies will not rekindle inflation, which has yet to return to the Fed&#8217;s 2% target.
Recent indications of softening in the job market, however, have largely convinced investors that the Fed will cut rates by a quarter of a percentage point when it meets in mid-September. That expectation has helped bring down mortgage rates in recent weeks.
Bessent has previously said a 50-basis-point cut in rates was warranted.
(Reporting by Andrea ShalalEditing by Mark Potter and Leslie Adler)

Treasury Secretary Scott Bessent

Bessent Says U.S. Tariff Revenues To Rise ‘Substantially,’ Focus On Reducing Debt

National Debt

American alcohol exports to Canada have decreased by more than 60% due to the country’s boycott of American booze, the Wall Street Journal <a href="https://www.wsj.com/business/us-alcohol-industry-canada-boycott-71dbd1e0?gaa_at=eafs&amp;gaa_n=ASWzDAgMKxl1Z42FZE0H9vsKxyx6UHtLImhkvrEg4LDxFp6TPl0_kT_uF-qD53mhao4%3D&amp;gaa_ts=689e10c1&amp;gaa_sig=q2KnwkppwNBI9ovAt-qltsHtxxlAc7IiEfamB99ruYjh5YD_vMPlpPZiqX6IzhRnmYH9eWs57RGoFdtbc5Zn2Q%3D%3D" target="_blank" rel="noopener">reported</a> on Thursday.
Several Canadian provinces, which regulate the sale of liquor in Canada, initiated boycotts in response to President Donald Trump imposing a <a href="https://abcnews.go.com/Business/timeline-trump-tariffs-canada-mexico-china/story?id=119506883" target="_blank" rel="noopener">25% tariff</a> on Canadian goods in February. Liqueur stores stopped ordering new shipments and replaced American products on their shelves with Canadian ones.
The Distilled Spirits Council, an alcohol industry group, estimated exports of American distilled spirits to Canada in the first six months of 2025 were down about 62% from the same period the year before, while exports of American wine were down 67%.
The Wine Institute, a trade group representing California-based wineries, estimated that in six months this year, American wineries lost more than $173 million in export value. In 2024, Canada bought up 35% of American wine exports, making it the industry’s largest export destination.
Robert Cullins, CEO of Baltimore-based Sagamore Spirit, estimates that the company will lose out on $2 million of revenue this year. “We’re a small craft distillery, so a couple of million dollars is pretty significant.”
One California vineyard, Hope Family Wines, says their sales have fallen by 10% so far. “It’s definitely going to hurt us personally,” Gretchen Roddick, the executive vice president, stated.
Meanwhile, Ontario announced that sales of Canadian brands have jumped by 14%.
Alberta participated in the boycott for three months before replacing it with a 25% tariff, claiming they wanted to improve the tone of trade talks between the two countries, according to Dale Nally, the province’s minister of red tape reduction.
The booze boycott is one of the reasons Trump has called Canada “<a href="https://www.ctvnews.ca/canada/article/trump-thinks-canadians-nasty-for-avoiding-us-travel-banning-booze-ambassador/" target="_blank" rel="noopener">mean and nasty to deal with.</a>”
Canada failed to reach a trade agreement with the US before Trump’s August 1st deadline, meaning that any products not covered under the United States -Mexico-Canada Agreement — about <a href="https://www.cbc.ca/news/politics/canadian-exports-tariff-free-trump-us-trade-1.7604415" target="_blank" rel="noopener">60%</a> of products — will be subject to 35% tariffs. This puts Canada on the <a href="https://finance.yahoo.com/news/live/trump-tariffs-live-updates-117-year-high-in-volume-at-busiest-port-in-the-us-200619178.html" target="_blank" rel="noopener">higher end</a> of the tariff scale.
There is currently no sign of ongoing negotiations between the two countries.
“We’ll speak when it makes sense,” Canadian Prime Minister Mark Carney told reporters last week.
He warned the United States that Canadian investment in the country could decline without a deal: “Canada is the second-largest investor in the United States today in the world. We have 40 million people.”
“That puts in context the state of the relationship,” he said. “Without an agreement, there will be less by definition.”
Trump has not commented on the situation or hinted at future trade talks. Shortly before the August 1st deadline, he <a href="https://www.politico.com/news/2025/07/28/canada-us-trade-talk-inside-drama-00480177" target="_blank" rel="noopener">stated</a> that “We haven’t really had a lot of luck with Canada. I think Canada could be one where they’ll just pay tariffs. It’s not really a negotiation.”

Young drunk woman sleeping on bar counter drinking dark beer

The American Alcohol Industry is Suffering From Canada’s ‘Mean And Nasty’ Boycotts

Alcohol

United States

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