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Miami Herald
11-07-2025
- Automotive
- Miami Herald
Detroit Axle warns of more layoffs as tariff case is heard by federal court
Detroit Axle, a large aftermarket auto parts dealer, says it has cut a handful of jobs so far and more layoffs are coming if it can't get tariff relief on goods it imports from China. The Ferndale-based company, which in May sued President Donald Trump's administration over the tariffs, said in recent court filings that it's been forced to lay off 10 employees and notified the state officials of 100 more. A federal three-judge panel heard arguments in the case Thursday and could issue a decision in the coming days. "The company is already operating at a loss, has begun firing employees, and is perilously close to going out of business," said one recent court filing, which urged swift action in the case. The Detroit Axle job cuts come after Trump ended the "de minimis" exemption, which previously allowed small-value packages from China to enter the country duty-free. The firm argues the abrupt cancellation of that exemption could mean the end of its business, which employs more than 500 people, with almost half of those in Michigan. Detroit Axle had leaned heavily on the small-value package carve-out in order to affordably ship China-made parts to U.S. customers - such as mechanics and do-it-yourselfers - from a distribution center in Juarez, Mexico. Without the under-$800 package exemption in place, it says those same parts now face a 72.5% tax at the border, so it's halted shipments from the facility altogether. CEO Mike Musheinesh said in a recent court filing that the tariffs had "profoundly damaged" the business. "Detroit Axle's price-sensitive customers would not tolerate that price increase, and Detroit Axle cannot lower its prices to absorb the impact of the tariffs," Musheinesh said in a legal declaration filed late last month, as his company has sought a preliminary injunction that would provide it tariff relief. On Thursday, attorneys for Detroit Axle and the government made their case before the three-judge panel of the U.S. Court of International Trade in New York City. The family-run firm joins several companies actively challenging the president's ability to impose his sweeping import taxes. Detroit Axle's case is intertwined with another tariffs case recently heard by the same New York trade court, which involved several states and businesses including VOS Selections Inc., a wine and spirits company. In that case, the trade court agreed that the president's moves to set new duties had exceeded his legal authority under a law called the International Emergency Economic Powers Act, or IEEPA. But those broader set of tariffs are still in place while an appeal plays out. If the VOS group ultimately wins, it will bolster Detroit Axle's argument that Trump wasn't legally allowed to unilaterally end the de minimis exemption. But the company's attorney, Tom Dupree, on Thursday also argued that the parts distributor should prevail even if the Trump administration succeeds in the VOS case, because government officials didn't conduct the proper noticing and comment period before the tariff exemption ended. A government lawyer, Sarah Welch, pushed back on that idea, stating that the Detroit Axle case should be treated separately from VOS, and that a portion of a Trump executive order that axed the de minimis exemption could live on even if his other tariffs are legally halted. Government attorneys have argued that the end of the de minimis exemption hasn't actually had a significant impact on the company, pointing out that Detroit Axle didn't file its case for a couple of weeks after the new policy became official. One of the judges said that under the recently-signed One Big Beautiful Bill Act, Trump's sweeping policy legislation, the de minimis exemption is formally set to end in 2027 anyway. Dupree said that later timeframe is OK, and gives Detroit Axle time to adapt its business model, whereas Trump's unilateral order ending the exemption earlier this year did not. Musheinesh, in his recent legal declaration, said the company has fulfilled orders from a stockpile of parts at its Michigan facility. But as that supply has been depleted, it has been forced to import some of its parts from the Mexico facility, "paying millions of dollars in tariffs on them before selling them to customers, often at a loss. When the pre-tariff inventory runs out, the business will no longer make economic sense." He said the company's can't quickly shift to non-Chinese suppliers because it has long-term contracts with those companies, non-Chinese suppliers cost more, and they don't offer all products at the same quality level. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
CNBC
11-07-2025
- Business
- CNBC
Trump's 50% Brazil tariff stretches emergency powers already facing court challenge
President Donald Trump's politically charged new tariff threat — a blanket 50% duty on imports from Brazil — stretches an interpretation of his powers that is already facing a high-stakes court challenge. Trump said in a letter Wednesday that he is imposing the massive new tariff at least partly in retaliation against Brazil's treatment of its former president, Jair Bolsonaro. But to do so, he is citing a law that only grants him emergency economic powers in order to deal with certain foreign threats to the United States, a White House official told CNBC Thursday. That same law — the International Emergency Economic Powers Act, or IEEPA — is at the center of an ongoing lawsuit over Trump's "reciprocal" tariffs that is currently before a federal appeals court. Trump's lawyers say his invocation of the law to impose those tariffs was an appropriate move to address multiple national emergencies, including "America's exploding trade deficit." The White House did not immediately respond to CNBC's questions about Trump's letter to Brazil, including how Bolsonaro's circumstances relate to Trump's stated authority under IEEPA. While the latest levy on Brazilian imports may not have a direct impact on the lawsuit already underway, critics say it could further erode the administration's credibility as Trump pursues an aggressive trade agenda. Trump's letter announcing the tariff on Brazil "takes abuse of power to a whole new level," said Sen. Tim Kaine, D-Va., in a statement Thursday. Kaine vowed to "use all available means to block these latest job-killing tariffs." Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, accused Trump of attempting to "sacrifice the economy to settle his own personal scores, and it is far outside his legal authority." IEEPA gives the president some powers to deal with national emergencies stemming from "any unusual and extraordinary threat" that comes in whole or in large part from outside the U.S. Trump previously cited IEEPA in early April, when he slapped 10% tariffs on nearly all other countries' imports, plus higher rates on dozens of individual nations. His April 2 executive order announcing those tariffs also formally declared a national emergency. According to the order, foreign trade practices that "contribute to large and persistent annual United States goods trade deficits" have caused the loss of America's "industrial capacity" and "compromised military readiness." Trump temporarily suspended the higher tariffs a week later, following a trading frenzy in global markets. In late May, the U.S. Court of International Trade struck the reciprocal tariffs down, ruling that IEEPA did not authorize Trump to impose them. The judges in that case found that Trump's assertion of "unbounded" tariff-making power "exceeds any tariff authority delegated to the President under IEEPA." But in June, judges on the U.S. Court of Appeals for the Federal Circuit paused that decision from taking effect while the case is still pending. "We'll have to see" if Trump's tariff letter to Brazil could factor into the appeal, said Ilya Somin, a law professor who is representing plaintiffs in the case against the Trump administration. "For the moment, these new Brazil tariffs are not part of the case," Somin said in a phone interview. But he added that the letter "further underscores the indefensible nature" of Trump's assertion that he has virtually "unreviewable discretion" on tariffs. This week, Trump began a new strategy: firing off individual letters to world leaders that set new tariff rates on their countries' U.S. imports, starting Aug. 1. The nearly two dozen letters sent so far include identical language complaining about trade policies that have created "persistent" and "unsustainable Trade Deficits against the United States." "This Deficit is a major threat to our Economy and, indeed, our National Security!" they read. But Trump's letter to Brazil takes things much further, by explicitly declaring that he is imposing tariffs because he opposes the recent political and legal developments in the country. Trump specifically decried Brazil's treatment of Bolsonaro, who is facing trial over his role in an alleged coup to overturn his 2022 reelection loss. "This Trial should not be taking place," Trump wrote in the letter to current President Luiz Inacio Lula da Silva. "It is a Witch Hunt that should end IMMEDIATELY!" He said the 50% tariff was coming in part due to "Brazil's insidious attacks on Free Elections." He also alleged that the country has attacked the "fundamental Free Speech Rights of Americans," accusing Brazil's Supreme Court of unlawfully censoring U.S. social media platforms. Trump also knocked Brazil's trade policies. Echoing his language from prior letters, Trump claimed that Brazil's persistent U.S. trade deficits pose a national security threat. Except that Brazil is one of the few trading partners with whom the U.S. maintains a goods trade surplus, not a deficit. That surplus totaled $7.4 billion in 2024, according to the Office of the U.S. Trade Representative. "He's either lying or misinformed," Somin said of Trump's incorrect claim. Somin also asserted, contra Trump and his lawyers, that the U.S. having trade deficits with its partners is not unusual and does not constitute an emergency. So "it's particularly stupid when we actually have a trade surplus," he said.
Yahoo
20-06-2025
- Business
- Yahoo
Wall Street's Leading Stories of 1H25 and Outlook for 2H
The first half of 2025 has been defined by heightened volatility and uncertainty, largely stemming from the new administration's trade policies. After hitting a low in early April, Wall Street staged a strong rebound fueled by renewed optimism over trade negotiations, solid corporate earnings, easing inflation and continued momentum in artificial stocks led the charge, with the Magnificent Seven making a powerful comeback after months of the half-year mark approaches, the S&P 500 is now less than 3% below its record high, while the Nasdaq Composite is 3.4% off its all-time peak. The Dow Jones Industrial Average, however, remains only marginally positive for the year. Volatility is expected to persist in the second discuss these events in detail below with the stocks: On April 2, Donald Trump announced sweeping new tariffs dubbed 'Liberation Day' tariffs. These included a 10% baseline tariff on nearly all imports, with a few exceptions such as pharmaceuticals, semiconductors, and lumber. On top of the baseline, Trump introduced 'reciprocal' tariffs that targeted specific countries. China faced tariffs ranging from 34% to 54%, the European Union 20%, Japan 24% and Vietnam up to 46%. These tariffs officially took effect on April backlash and international criticism, the Trump administration issued a 90-day pause on tariff hikes for over 75 countries on May 12, though the 10% baseline tariff remained in place. Additionally, Chinese tariffs were reduced from a peak of 145% to around 30%, though they remained substantially elevated. On May 30, Trump doubled tariffs on imported steel, raising them from 25% to 50%, citing national security concerns and the need to protect U.S. actions faced legal scrutiny. On May 28, the U.S. Court of International Trade ruled that many of the tariffs were illegal under international trade law. However, the court also issued a stay, meaning the tariffs would remain in place pending tariff policies triggered an initial market rout, with trillions lost in just days. However, the partial pause in tariffs and the Fed's decision to hold interest rates steady led to a strong rebound. Some sectors emerged as clear winners. Companies like Palantir Technologies PLTR surged more than 90% since the April sell-off and recently hit a new all-time high. The stock saw a solid earnings estimate revision of 3 cents over the past 60 days for this year and has an estimated growth of 41.46%. Palantir Technologies has a Zacks Rank #3 (Hold) and a Growth Score of A. The S&P 500 hit a record high on Feb. 19 before tumbling toward bear market territory by April 8. However, the index staged a remarkable rebound, marking its fastest recovery since 1982. In May, it delivered the strongest performance since 1990 and the biggest monthly gain since November by this turnaround, a growing number of Wall Street strategists have turned bullish in recent weeks. Several firms have raised their year-end S&P 500 targets to the 6,300–6,500 range, reflecting renewed confidence in the market's outlook for the second half of NEM, having a Zacks Rank #1 (Strong Buy), is one of the best-performing stocks of the first half. The stock saw a positive earnings estimate revision of 5 cents for this year over the past month, with an estimated growth rate of 20.1%. Newmont has a VGM Score of A, indicating that it is poised for more gains ahead. You can see the complete list of today's Zacks #1 Rank stocks here. The race for the title of the world's most valuable publicly traded company has intensified in 2025, with NVIDIA NVDA and Microsoft MSFT locked in a high-stakes battle for market cap supremacy. Fueled by the explosive growth of artificial intelligence, the rivalry has captured Wall Street's full attention and is reshaping the tech landscape in real of June 18, Microsoft held a slight lead with a market capitalization exceeding $3.57 trillion. Its ascent was driven by robust cloud expansion, deepening AI integrations through its partnership with OpenAI, and continued dominance in the enterprise software space. NVIDIA, meanwhile, is capitalizing on an unprecedented demand cycle for its AI chips, rapidly scaling sales of its GPUs that power the very heart of AI computing. Since bottoming at just over $94 in early April, NVDA stock has added more than $1 trillion in market value. Growth-focused traders are flocking to NVIDIA for its unprecedented AI chip momentum, high margins and dominant position in next-gen essence, NVIDIA may be building the engine of the AI revolution, but Microsoft is constructing the operating system around it. Azure continues to be one of the fastest-growing cloud platforms globally, while Microsoft 365 and Teams have become indispensable tools in the modern digital workplace. Microsoft and NVIDIA have a Zacks Rank #3 (Hold) each. Gold stocks have surged in popularity this year, driven by a flight to safety amid growing global uncertainty. Investors are turning to the precious metal to shield their portfolios from the disruptive impact of Trump's tariffs on global trade and rising concerns of an economic slowdown. Gold recently soared to a new all-time high, topping $3,400 per ounce last tensions in the Middle East—particularly the Israel-Iran conflict—have intensified safe-haven demand, pushing both gold prices and gold-related equities higher. Additionally, a weaker U.S. dollar and continued central bank accumulation have further fueled gold's rally. Goldman Sachs forecasts that gold could climb to $3,700 per ounce by the end of 2025, reinforcing the bullish outlook for the metal and gold the potential beneficiaries is AngloGold Ashanti PLC AU, a global gold mining company with operations across Africa, the Americas and Australia. The company has seen a solid earnings estimate revision of 60 cents over the past 30 days for this year, with an estimated growth of 122.1%. Despite more than doubling year to date, AngloGold remains attractively valued, trading at a P/E ratio of 9.80 compared with the industry average of 3.26. The stock sports a Zacks Rank #1 and has a VGM Score of A, underscoring its compelling investment potential amid the ongoing gold rally. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Newmont Corporation (NEM) : Free Stock Analysis Report AngloGold Ashanti PLC (AU) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
Appeals court ruling gives Trump a win on tariffs
WASHINGTON – President Donald Trump can collect tariffs while states and small businesses continue to fight to overturn the taxes on worldwide imports, under a federal appeals court decision. A three-judge panel of the U.S. Court of International Trade ruled May 28 that Trump exceeded his authority under the International Emergency Economic Powers Act by imposing the tariffs to combat what he cited as 'unusual and extraordinary threats' during national emergencies. But the U.S. Court of Appeals for the Federal Circuit on June 10 put that decision on hold while the case is litigated. The court's 11 judges will hear full arguments because of the case's "exceptional importance." The judges asked both sides to develop an expedited schedule to complete the case. 'A great and important win for the U.S.,' Trump said on social media. Trump has imposed tariffs on the country's largest trading partners – Mexico, Canada and China – and a slew of other countries. He aimed to reduce trade deficits and said the proceeds from tariffs would reduce the federal deficit while manufacturers would bring jobs back to the U.S. The appeals ruling came in a pair of lawsuits. One was filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses that import goods from countries targeted by the duties. The other was by 12 states. Trump has claimed broad authority to set tariffs under the 1977 emergency law that previously was used to impose sanctions or freeze assets of U.S. enemies. But Trump said February tariffs on Mexico, Canada and China were to fight fentanyl trafficking. He imposed sweeping tariffs on other trading partners April 2 to combat the U.S. trade deficit in which the United States buys more from other countries than it sells them. He announced on May 30 he would double the tariff on steel to 50%. The tariffs prompted countries to negotiate individual trade deals with the U.S. The United Kingdom reached an agreement and China continues to negotiate. Administration officials say dozens more potential deals are in the works. But retailers have complained the tariffs are driving up prices and forcing them to cut jobs. At least five other court cases have challenged Trump's justification for tariffs under the emergency economic powers act. A federal district court also blocked the tariffs May 29 for an Illinois toy importer but that case involved only that business. The Trump administration has appealed the decision. This article originally appeared on USA TODAY: Court ruling gives Trump a win on tariffs while appeal plays out
Newsweek
17-06-2025
- Business
- Newsweek
Supreme Court Gets First Chance to Weigh in on Donald Trump Tariffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Two small toy companies have petitioned the U.S. Supreme Court to overturn President Donald Trump's global tariffs, arguing that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA). These tariffs, including a 10 percent universal levy and higher rates on countries like China, Canada, and Mexico, were previously deemed unlawful by the U.S. Court of International Trade, which ruled that the IEEPA does not grant the president such broad tariff-setting powers. However, a federal appeals court has temporarily stayed that decision, allowing the tariffs to remain in effect during the ongoing legal proceedings. The Supreme Court's decision on whether to hear the case could have significant implications for the scope of executive power in trade policy. This is a breaking news story. Updates to follow.
