President Donald Trump's August 1 trade deadline is now just hours away. He set that date for several countries to come to terms on trade deals with the U.S. or face stiff tariffs.
Some new deals have been struck in recent days, including one with South Korea and the European Union. However, several other countries like Canada and Mexico have still not come to an agreement.
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Meanwhile, a significant court case is getting underway Thursday that could have implications on whether President Trump has the legal authority to impose these tariffs. A lower court previously agreed with a group of small business owners and Democratic attorneys general that the president overstepped his authority in issuing these tariffs.
Notably, President Trump isn't coming to House Speaker Johnson or the Senate to propose tariffs; instead, he is relying on a 1970s law to justify the use of emergency powers to implement them. This critical aspect is what the appeals court will decide — whether the president is operating within the bounds of the law. Given the complexity of this case, it’s possible it could eventually make its way to the U.S. Supreme Court.
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In regards to tariffs, President Trump was particularly active on social media Thursday morning, praising his decision to use these tariffs as a tool for negotiation to create more balance in trade.
"Tariffs are making America GREAT & RICH Again," Trump wrote on his Truth Social platform. "They were successfully used against the USA for decades and, coupled with really dumb, pathetic, and crooked politicians, we’re having a devastating impact on the future, and even the survival, of our country. Now the tide has completely turned, and America has successfully countered this onslaught of Tariffs used against it. ONE YEAR AGO, AMERICA WAS A DEAD COUNTRY, NOW IT IS THE 'HOTTEST’ COUNTRY ANYWHERE IN THE WORLD. CONGRATULATIONS TO ALL!"
Trump also wished his lawyers luck in the case, which he believes should affirm the presidential authority to impose tariffs if other countries are imposing tariffs on the U.S.
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As Americans watch this situation unfold, many may be wondering when these tariffs will impact their finances. It's important to remember that there is a bit of lag time.
For example, if a company sourced products from India or South Korea last month, it may be several months before they need to place another order, meaning price increases may not be immediate. This delay in price adjustment is part of the reason Federal Reserve Chairman Jerome Powell and the Federal Reserve decided on Wednesday to keep its key interest rate steady, as uncertainties about the long-term effects of these tariffs on inflation persist.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
