Business
States led by New York sue to block Trump’s latest tariffs, calling them an illegal end run around Supreme Court
U.S. President Donald Trump and New York Attorney General Letitia James.
Brian Snyder | David Dee Delgado | Reuters
New York Attorney General Letitia James and the top prosecutors of 23 other states once again sued to block President Donald Trump‘s global tariff regime, just days after a landmark Supreme Court decision struck down his previous effort.
Their lawsuit, filed Thursday in the Court of International Trade, seeks to deem Trump’s latest tariffs illegal and order refunds to states.
Last month, the Supreme Court invalidated most of Trump’s sweeping “Liberation Day” tariffs implemented last year, saying that his use of the International Emergency Economic Powers Act to impose duties was improper.
But the president sought to keep his signature policy alive by immediately announcing a new wave of tariffs, these based on another law, Section 122 of the Trade Act of 1974. That global tariff rate is currently set at 10%, but the Trump administration has said it plans to raise it to 15%.
“After the Supreme Court rejected his first attempt to impose sweeping tariffs, the president is causing more economic chaos and expecting Americans to foot the bill,” James said in a statement provided to CNBC.
“President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses,” she said.
The move from the coalition of state attorneys general — most of whom were part of the successful effort to block Trump’s original tariffs — adds to the ongoing international uncertainty created by the president’s tariff policies. On Wednesday, a federal court ruled that companies that paid tariffs struck down last month by the Supreme Court are due billions of dollars in refunds.
“The President is using his authority granted by Congress to address fundamental international payments problems and to deal with our country’s large and serious balance-of-payments deficits,” said White House spokesman Kush Desai. “The Administration will vigorously defend the President’s action in court.”
Misuse of law
In their lawsuit, James and the coalition argue that Trump is misusing Section 122 of the 1974 trade act, which they say was designed to address specific monetary imbalances possible when the U.S. was under the gold standard, rather than to combat trade imbalances.
The attorneys general also contend that the tariffs violate the Constitution’s separation-of-powers principle giving Congress the power to impose duties, and that Trump’s levies violate the 1974 trade act’s requirements that they be applied consistently across countries.
The effort is “a clear attempt to escape the Supreme Court’s ruling in the case against the tariffs imposed under IEEPA,” according to James.
Last year, James and 11 other states sued the Trump administration to halt his original round of tariffs. That effort was eventually combined with suits from small businesses affected by tariffs in the Supreme Court case that handed Trump one of the biggest legal setbacks of his second term.
Trump and James have had their own legal entanglements.
His administration’s Justice Department indicted James in October on two counts, bank fraud and making false statements to a financial institution.
James, however, faces no charges after a judge threw out her indictment and two grand juries separately declined to revive those efforts.
Correction: A previous version of this story misstated the timing of the lawsuit from James and other state attorneys general.
The UK must not “cut ourselves off” from trade opportunities in China despite security and business risks, the head of the Confederation for British Industry has warned.
CBI chief Rain Newton-Smith highlighted that British businesses see increased trade with Chinese firms as an opportunity to drive growth.
Her remarks came as business leaders were questioned by MPs on Parliament’s Business and Trade Select Committee regarding the UK’s economic relationship with China.
Last December, Prime Minister Sir Keir Starmer admitted China poses security threats to the UK but urged for greater business ties.
Ms Newton-Smith, chief executive of one of the UK’s largest business groups, was positive about the Government’s engagement with China.
“You can’t have a growth strategy without a strategy for China,” she said.
“China has the biggest contribution to global growth, is the third largest trading partner, and the world’s largest consumer market.
“The UK is second largest exporter of trade and services.
“We are mindful as all businesses are of security risks but it is really important that we have a strategy towards China.
“This Government has increased the economic engagement with China and including business within this does help us as a country.”
She added: “If we think about the future economy, there is a huge market in China and I think we mustn’t cut ourselves off from some of the opportunities there, even if in some areas there are difficult conversations and negotiations that need to be had.”
Peter Burnett, chief executive of the China-Britain Business Council, told the committee: “There are risks associated with technology advancement, AI, industrial development that they need to assess.
“Increasingly you will find them saying that they need to engage more in China to understand those risks and to develop some of the technologies along some of those risks themselves.”
Business
Trump says he’d be disappointed if Fed pick doesn’t cut rates; Warsh vows to be ‘independent actor’ – The Times of India
US President Donald Trump on Tuesday said he would be disappointed if his nominee for Federal Reserve chair, Kevin Warsh, does not cut interest rates right away after taking office if confirmed by the Senate. Trump, during an interview with CNBC’s “Squawk Box,” also said “we have to find out” about the construction costs of the new Federal Reserve building.Warsh, a former Federal Reserve official and financier, is currently facing Senate confirmation hearings where he has stressed his independence from political pressure.“The president never once asked me to commit to any particular interest rate decision, and nor would I agree to it if he had,” Kevin Warsh said under questioning by the Senate Banking Committee, as quoted by LA Times. “I will be an independent actor if confirmed as chair of the Federal Reserve.”Warsh told lawmakers that fighting inflation would be one of his main priorities if confirmed.“Congress tasked the Fed with the mission to ensure price stability, without excuse or equivocation, argument or anguish,” Warsh said. “Inflation is a choice, and the Fed must take responsibility for it.”The comments come as investors closely watch his confirmation hearing, with inflation remaining at 3.3% annually and global tensions, including the war in Iran pushing up gas prices, adding pressure on the economy. Higher inflation typically leads the Federal Reserve to keep interest rates steady or raise them rather than cut them, as rate changes affect mortgages, auto loans, and business borrowing.Democrats on the Senate Banking Committee accused Warsh of shifting his stance on interest rates over time, supporting higher rates under Democratic presidents and lower rates during Trump’s presidency.Warsh, if confirmed, would take over at a time when inflation pressures make it difficult for the Federal Reserve to cut rates, even as Trump continues to push for lower borrowing costs. Trump has repeatedly urged rate cuts and has long clashed with current Fed chair Jerome Powell over monetary policy. Powell has also been the subject of a Department of Justice criminal probe after refusing Trump’s requests for faster rate cuts. Trump told CNBC that he does not plan to pressure the Justice Department to end that probe.
The consultancy Teneo says airspace restrictions caused by the conflict have forced airlines to reroute many flights.
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