The US Supreme Court is poised in the weeks ahead to decide the legality of the majority of President Trump’s tariffs. The president invoked the International Emergency Economic Powers Act (IEEPA) to levy blanket tariffs on goods from other countries. But Congress is the branch of the US government with oversight of taxation and spending — not the president.
As he has publicly braced for the high court’s decision, Trump has claimed the “full benefit” of tariff policies would take effect soon, arguing that foreign buyers who stockpiled inventory would be forced to buy more goods. Meanwhile, Trump further expanded tariff breaks on Brazilian goods, part of moves to lower costs on some everyday goods as consumers grapple with price struggles.
The push to reduce food prices comes after electoral wins for Democrats across a number of key state and local races where candidates stressed affordability concerns. Trump has also in recent weeks floated the possibility of a tariff “dividend” for many Americans in the form of a $2,000 check.
Trump also in recent days floated the possibility of reducing — or completely eliminating — personal income tax.
Read more: What Trump’s tariffs mean for the economy and your wallet
The OECD raised its forecast for US growth this year — to 2%, up from the 1.6% it had forecast in June. Still, the American economy would have grown considerably more slowly than it did in 2024 (2.8%).
The US announced a major pharmaceuticals deal with the UK on Monday, which will lead to zero import tariffs on pharmaceutical products.
US Commerce Secretary Howard Lutnick has announced that the general tariff rate on imports from South Korea, which includes autos, will drop to 15% retroactive to Nov. 1. The move comes as South Korea has started to implement its US investment commitments.
The Trump administration is negotiating a deal that would commit Taiwan to new investment and training of US workers in semiconductor manufacturing and other advanced industries. Taiwan is also pushing for tariffs on its goods to be cut to 15%.
Trump said Chinese leader Xi Jinping “pretty much” agreed to increase the speed and size of the country’s agricultural purchases. Trump and Xi held their first call last week since the US and China struck a trade and tariff truce.
Friction between the US and EU continues to build as the two nations look to implement the framework agreement struck earlier this year. The EU is seeking lower tariffs on certain goods, but it rejected a demand to ease tech rules.
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US growth forecast upgraded for 2025: OECD
The world economy has shown itself to be resilient in the face of President Trump’s tariffs, according to data released on Tuesday from the Organization for Economic Cooperation and Development.
The OECD upgraded its outlook for global and US economic growth this year and now forecasts that the world economy will grow 3.2% this year, down slightly from 3.3% in 2024 but a big improvement on the 2.9% it predicted in June.
Its economic forecast for US growth this year has risen to 2% up from its 1.6% June forecast.
The AP reports:
