Business
Trump asks US Supreme Court to uphold his tariffs after lower court defeat
President Donald Trump has asked the US Supreme Court to overturn a lower court decision that found many of his sweeping tariffs were illegal.
In a petition filed late on Wednesday, the administration asked the justices to quickly intervene to rule that the president has the power to impose such import taxes on foreign nations.
A divided US Court of Appeals for the Federal Circuit last week ruled 7-4 that the tariffs Trump brought in through an emergency economic powers act did not fall within the president’s mandate and that setting levies was “a core Congressional power”.
The case could upend Trump’s economic and foreign policy agenda and force the US to refund billions in tariffs.
Trump had justified the tariffs under the International Emergency Economic Powers Act (IEEPA), which gives the president the power to act against “unusual and extraordinary” threats.
In April, Trump declared an economic emergency, arguing that a trade imbalance had undermined domestic manufacturing and was harmful to national security.
While the appellate court ruled against the president, it postponed its decision from taking effect, allowing the Trump administration time to file an appeal.
In Wednesday’s night’s filing, Solicitor General John Sauer wrote that the lower court’s “erroneous decision has disrupted highly impactful, sensitive, ongoing diplomatic trade negotiations, and cast a pall of legal uncertainty over the President’s efforts to protect our country by preventing an unprecedented economic and foreign policy crisis”.
If the Supreme Court justices deny the review, the ruling could take effect on 14 October.
In May, the New York-based Court of International Trade declared the tariffs were unlawful. That decision was also put on hold during the appeal process.
The rulings came in response to lawsuits filed by small businesses and a coalition of US states opposing the tariffs.
In April, Trump signed executive orders imposing a baseline 10% tariff as well as “reciprocal” tariffs intended to correct trade imbalances on more than 90 countries.
In addition to those tariffs, the appellate court ruling also strikes down levies on Canada, Mexico and China, which Trump argues are necessary to stop the importation of drugs.
The decision does not apply to some other US duties, like those imposed on steel and aluminium, which were brought in under a different presidential authority.
Shares of Netflix fell around 5% after the company posted a third-quarter earnings miss after the closing bell Tuesday.
The streamer cited an ongoing dispute with Brazilian tax authorities for the weaker-than-estimated results.
“Operating margin of 28% was below our guidance of 31.5% due to an expense related to an ongoing dispute with Brazilian tax authorities that was not in our forecast,” the company said in a shareholder letter. “Absent this expense, we would have exceeded our Q3’25 operating margin forecast. We don’t expect this matter to have a material impact on future results.”
Revenue for the quarter rose 17%, in line with analyst expectations. Netflix said the growth was driven by membership gains, pricing adjustments and increased ad revenue. For the fourth quarter, Netflix expects revenue to rise 17% year over year as those trends continue.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
- Earnings per share: $5.87 vs. $6.97, according to LSEG
- Revenue: $11.51 billion vs. $11.51 billion, according to LSEG
Netflix reported net income of $2.55 billion, or $5.87 per share, up from $2.36 billion, or $5.40, in the same quarter a year prior.
For the full-year, Netflix is predicting $45.1 billion in revenue, a 16% jump from the year prior, and in line with previous expectations of revenue growth of between 15% and 16%.
The company did alter its operating margin forecast for the year, stating that it now expects it to be 29% instead of the prior projection of 30%. Netflix cited the impact of the Brazilian tax matter for that change.
The company said it posted its best ad sales quarter ever during the quarter, with co-CEO Greg Peters noting that Netflix is on track to more than double ad revenue this year.
“Netflix had its best ad sales quarter to date, but still did not provide a figure for how large the ad business is,” said Ross Benes, senior analyst at EMarketer, in a statement. “This gives the impression that the sustained revenue growth achieved this quarter, and forecasted for next quarter, will predominantly continue to come from subscription fees.”
Netflix raised its prices in January, including the cost of its ad-supported tier.
But analysts are questioning if Netflix’s price-hiking power could be nearing its short-term peak. The company is expected to address questions during its earnings conference call Tuesday.
The streamer’s fourth-quarter slate of content contains a number of alluring titles, from the fifth and final season of “Strangers Things” and new seasons of “The Diplomat” and “Nobody Wants This” to Guillermo del Toro’s “Frankenstein” and Rian Johnson’s “Wake Up Dead Man: A Knives out Mystery.”
Netflix is also still riding the coattails of “KPop Demon Hunters,” which was released on the platform back in June. The animated film has become Netflix’s most-watched film with more than 325 million views on the platform.
Netflix announced Tuesday it’s expanding the animated film’s consumer reach with a dual products partnership with leading toy companies Hasbro and Mattel. “KPop Demon Hunters” dolls, plush, roleplay items and themed games will be available at retail in spring 2026.
The company also noted that it is looking into incremental opportunities related to live experiences, publishing, beauty and lifestyle as well as food and beverages related to the film. “KPop Demon Hunters” is also returning to theaters once again during the Halloween holiday weekend.
This is breaking news. Please check back for updates.
Still from Netflix’s “KPop Demon Hunters.”
Netflix
Netflix is partnering with both Hasbro and Mattel to bring “KPop Demon Hunters” toys to shelves.
The animated film, which debuted on the streaming service in June, has become Netflix’s most popular film of all time, with more than 325 million views worldwide. Its popularity has spurred Netflix to release it twice in theaters — once in August for a two-day weekend event and again next week around Halloween.
Partnering with Mattel and Hasbro will allow Netflix to offer a suite of consumer products based around the film.
Mattel will handle dolls, action figures, accessories and playsets, while Hasbro will focus on plush, electronics, roleplay items and board games, the companies announced Tuesday. There will likely be some overlap in product categories between the two toy makers, however.
Mattel is currently taking pre-orders for a three-pack of dolls featuring Rumi, Mira and Zoey, the members of the fictional KPop trio HUNTR/X. And Hasbro’s first product is a “KPop Demon Hunters” themed Monopoly Deal game.
Merchandise and toys from both companies will be available at retail in spring 2026.
“Netflix, Mattel and Hasbro joining forces on this first-of-its-kind collaboration means fans can finally get their hands on the best dolls, games, and merchandise they’ve been not-so-subtly demanding on every social platform known to humanity,” said Marian Lee, Netflix’s chief marketing officer, said in a statement Tuesday.
Rachel Reeves has said Brexit made the UK’s economy and productivity “weaker” than initially forecast when the UK voted to leave the European Union.
But the Chancellor expressed determination that “the past doesn’t define our future” as she set out plans to scrap paperwork and red tape for thousands of UK businesses in a bid to boost lacklustre economic growth at the Regional Investment Summit in Birmingham on Tuesday.
The gathering of business leaders and investors came after more gloomy news for the Chancellor as Government borrowing in September hit the highest level for the month in five years.
The data from the Office for National Statistics piles more pressure on Ms Reeves ahead of the November 26 Budget, in which she will have to fill a black hole estimated at around £50 billion by some economists.
Ms Reeves said the autumn statement will detail her “plans based on the world as it is, not necessarily the world as I might like it to be” as global volatility and a hike in defence spending “puts pressure on our economy”.
She said exiting the EU had caused more damage than forecasters had expected at the time, with the expected downgrade of the budget watchdog’s previous assumptions likely to make her task of balancing the books even harder.
The Chancellor told reporters: “The Office for Budget Responsibility do the forecasts for the economy. When we left the European Union, or when we voted to leave, they made an estimate about the impact that would have.
“What they’ve done this summer is go back to all of their forecasts and look at what actually happened compared to what they forecast.
“What that shows – and what they will set out – is that the economy has been weaker and productivity has been weaker than they forecast, despite the fact that they forecast that the economy would be weaker because of leaving the EU…
“I am determined that the past doesn’t define our future and that we do achieve that economic growth and productivity with good jobs in all parts of the country.”
Ms Reeves highlighted more than £10 billion in investment commitments secured at the summit, as well as deregulation and reform to planning and capital markets.
The OBR’s assessment will be published in detail alongside the Budget, in which the Chancellor has already acknowledged she is looking at potential tax rises and spending cuts.
The National Institute of Economic and Social Research has suggested Ms Reeves will need to find around £50 billion a year by 2029-39 to meet her goal of balancing day-to-day spending with tax revenues while maintaining “headroom” of around £10 billion against that target.
Asked about her promise not to deliver another tax-raising statement, Ms Reeves said: “This year has been particularly volatile in terms of world events, from Ukraine to the Middle East, to the higher trade tariffs that countries around the world including the UK face. We’re not immune to that, despite the fact that we’re doing trade deals with the EU, India and with the US.
“Of course, that puts pressure on our economy, as does the increased defence spending to keep us safe in an uncertain world.
“I’ll set out all my plans based on the world as it is, not necessarily the world as I might like it to be, in the Budget on November 26.”
Addressing business leaders at Edgbaston Stadium earlier, the Chancellor detailed measures to reform the company merger process, regulations for drones and reforms for artificial intelligence (AI).
She said a cross-economy AI “sandbox” would allow firms to develop new products “under supervision by regulators”.
This would speed up the approval of AI for use in areas including “legal services, planning assessments and advanced manufacturing”.
The Civil Aviation Authority will set out steps towards launching commercial drone operations which could allow unmanned aerial vehicles to be widely used for tasks from “surveying sites for development to delivering blood supplies for the NHS”.
Panels reviewing company mergers will be reformed to “provide greater certainty on whether transactions will be subject to merger control”.
She also confirmed plans to create simpler corporate reporting rules for more than 100,000 businesses, including removing the need for small business owners to submit lengthy director reports to Companies House.
Tory shadow business secretary Andrew Griffith said it was “laughable to hear Labour talk about scrapping red tape when they have created countless new quangos” and piled “burdens and costs on employers’ shoulders” through business tax hikes.
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