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Major Corporations Stay Silent as Supreme Court Weighs Trump’s Tariffs

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America’s largest companies have gone quiet as one of the most consequential economic showdowns of the decade hits the Supreme Court. The battle over Donald Trump’s global tariffs isn’t being led by Wall Street or Silicon Valley. It’s being waged by small businesses, the kind that can’t afford to wait out the uncertainty or absorb the hit of another presidential trade gambit.

The Supreme Court will hear arguments on Wednesday on whether Trump’s “Liberation Day” tariffs and his unilateral duties on goods from China, Mexico, and Canada violate presidential authority.

In their case, businesses like a family-run toymaker from Illinois, a wine importer from New York, and a scattering of other modest firms say they have been suffocating under unpredictable import duties. Victor Owen Schwartz, founder of the wine and spirits importer V.O.S. Selections, told CNN he felt compelled to speak up.

“I was shocked that those with much more power and money did not step up. So when I was afforded the opportunity to speak for small American businesses, I took it.”

President Trump invoked a 1970s emergency statute, the International Emergency Economic Powers Act (IEEPA), to reshape global trade in the name of tackling trade imbalances and fentanyl trafficking. While the law allows a president to “regulate importation” in emergencies, it never explicitly mentions tariffs, and that omission is now at the heart of the fight.

The plaintiffs argue the tariffs have driven up costs and created crippling uncertainty. “It’s an asphyxiating tax,” said Rick Woldenberg, CEO of Learning Resources, one of the lead plaintiffs.

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“I’m not targeting Mr. Trump because I’m not a politician. I’m a taxpayer who’s been hit with an unlawful tax.”

Despite the far reach of the case, America’s corporate heavyweights are mostly staying out of it. That silence, experts say, likely stems from a fear of political retaliation.

“The federal government has immense leverage and immense power and can upend your business with a tweet or a tax investigation,” said Georgetown Law professor Gregory Shaffer.

“I think there’s a sense that companies wanted to be more careful with this administration.”

It wouldn’t have been the first time big business has weighed in on controversial legal fights. In recent years, dozens of corporations, including Apple, Walmart, General Electric, and Intel, have filed friend-of-the-court briefs on social or economic issues. But this time, there’s no such chorus.

“Anyone who wants to speak out against this is going to be in the pain cave,” said Cassie Abel, founder and CEO of women’s outdoor brand Wild Rye. Abel, who joined an amicus brief opposing the tariffs, said the fear of blowback from Trump’s camp is real, especially after large retailers faced his public ire for linking tariff costs to price hikes.

Trump’s legal team insists the IEEPA gives him wide latitude to impose tariffs, even if the term isn’t spelled out. The administration’s top appellate lawyer, Solicitor General D. John Sauer, warned that striking down the tariffs could have “catastrophic consequences” for the economy.

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“Plaintiffs would unwind trade arrangements worth trillions of dollars, as President Trump has leveraged the IEEPA tariffs into negotiated framework deals with major trading partners—including the European Union, the United Kingdom, Japan, South Korea, and now China—that address underlying causes of the declared emergencies.”

Some major companies have found quieter ways to protect themselves by securing exemptions or rerouting supply chains to minimize damage. Others, like Apple and Home Depot, have not commented on why they’ve stayed on the sidelines this time.

Trade lawyer Gregory Husisian said many large corporations are calculating whether joining the case would add anything new to the arguments already made by smaller players. If you don’t have a fresh legal angle, he said, “What do you really gain by being the person who sticks your neck out?”

The Chamber of Commerce and several other industry groups have broken ranks to file briefs urging the court to undo the tariffs. They’re joined by nearly three dozen former federal judges, national security officials, and smaller trade groups who say the emergency powers law was never meant to let a president unilaterally reshape global trade.

For the plaintiffs, the case has become symbolic, as small businesses face off not just against Washington but also against the silence of their larger counterparts.

Meanwhile, Trump has avoided directly attacking the companies behind the lawsuit, perhaps wary of alienating the small-business community, which enjoys bipartisan sympathy. Whether that restraint lasts may depend on how the court rules.

plane

America No Longer on the Itinerary: Global Travelers Rethink U.S. Trips Amid Rising Tensions

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International travelers are increasingly reconsidering trips to the United States amid growing concerns over feeling unsafe or unwelcome due to controversial policies and diplomatic tensions linked to the Trump administration. Issues such as border detentions, heightened trade conflicts, and strained relations with longstanding allies are causing many tourists to rethink their support for the U.S. economy.

A proposed new travel ban could restrict citizens from up to 43 countries, including Belarus, Cambodia, and St. Lucia, further complicating international relations and fueling traveler anxieties.

Mallory Henderson, a London-based marketing consultant who regularly visited the U.S. to see family, told The New York Times she canceled her upcoming trip to Boston, citing discomfort with the “unpredictable” environment.

“So many Americans are looking to escape the tense and toxic atmosphere at home. Why would anyone want to visit, especially right now, with all the arbitrary detentions at immigration? It’s a really hostile and scary time, and quite frankly, there’s plenty of other inviting and pleasant places I can go to meet up with my family.”

Even before recent political shifts, the American tourism sector was already struggling to rebound from the pandemic. The strong U.S. dollar and prolonged visa processing had delayed recovery, with international visitor numbers projected not to reach pre-pandemic levels until late 2025 and tourist spending not fully rebounding until 2026, according to the U.S. Travel Association.

Tourism Economics, a research firm, initially predicted a 9 percent growth in travel to the U.S. this year but recently revised forecasts to reflect a 5.1 percent decline in inbound visitors.
This downturn is expected to result in an $18 billion reduction in visitor spending, significantly driven by Canadian travelers responding to newly imposed tariffs. In February, cross-border Canadian visits dropped by 24 percent year-over-year.

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Major airlines like Delta, American, and United have adjusted financial forecasts and reduced flights, especially to and from Canada, reflecting the diminished demand. United CEO Scott Kirby explicitly noted a substantial drop in Canadian passengers.

President of Tourism Economics, Adam Sacks, attributes this decline to perceptions caused by aggressive policy decisions.

“The negative sentiment shift is anticipated to be sustained by an evolving mix of Trump administration factors, including geopolitical friction on trade and national security policies, charged rhetoric and adversarial posturing. High-visibility border security and immigration policies and enforcement actions are also expected to discourage visits.”

Several nations, including the U.K., Canada, and Germany, have updated travel advisories cautioning citizens that visa waivers do not guarantee smooth entry into the U.S. following several highly publicized border detentions involving foreign nationals. For example, France recently protested after a French scientist was denied entry, allegedly due to his personal opinions about American politics discovered during a phone inspection—an assertion the U.S. denied.

While Europe has not seen cancellations at Canada’s scale, many travelers are reconsidering future trips to the United States. European Travel Agents’ Secretary General Eric Dresin warned that continued policy turbulence might lead to greater disruption in the European tourism market. In February, arrivals from Western Europe dipped by 1 percent compared to a 14 percent increase the previous year.

Tourists like Christoph Bartel, a German citizen who lives in Norway, are choosing alternate destinations after U.S. policy shifts. Bartel had initially planned to visit Arizona in the summer to tour national parks but canceled his plans when Trump fired park employees and reversed environmental regulations.

“It does not feel right to support the American economy when the president is causing so much sabotage. It is disappointing to abandon a special trip we planned for months, but we will go to Canada or Mexico instead.”

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British travelers, traditionally the largest European visitor group after Canada and Mexico, are also becoming cautious. Alan Wilson of Bon Voyage Travel & Tours noted a 5 percent drop in bookings for U.S. trips this year, driven partly by increased hotel costs and frustration with tipping culture.

“The British market absolutely hates the 20 percent tipping culture and how America always has its hand held out for the next gratuity. They would rather pay the money upfront.”

Small businesses reliant on tourism in popular destinations like New York and California feel the pinch. Luke Miller of Real New York Tours reported devastating cancellations, especially from Canadian visitors, with a bleak outlook for future bookings. If business doesn’t rebound, Miller fears layoffs will be inevitable. “I just had 20 busloads of seniors cancel their upcoming tours. That’s thousands of dollars of losses for my small business,” Mr. Miller said.

In response, state tourism agencies are stepping up marketing to reassure travelers. Visit California, the state’s tourism agency, slightly lowered its 2025 spending forecast, citing reduced international arrivals and recent wildfires.

“The good news is, thanks to California’s strong brand on the global stage, international visitors continue to show a strong affinity for the Golden State,” Caroline Beteta, the agency’s president, said in a statement.

New York City Tourism+ Conventions is emphasizing affordability and attractions beyond Manhattan, confident that the city will ultimately achieve its recovery goals despite present challenges.

“This is an excellent opportunity to highlight the other boroughs and parts of New York City outside of Manhattan that are just as vibrant and have amazing, award-winning culinary, arts and cultural experiences.”

Still, business owners like Miller remain concerned. “The reality is that we are being hit the hardest and might not survive,” he said.

ai

40% Of Jobs Worldwide Could Be Affected By Artificial Intelligence, IMF Says 

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According to the International Monetary Fund (IMF), around 40% of jobs globally could be affected by the rise in the use of artificial intelligence (AI). The IMF warned that these recent trends in AI could deepen the inequality that’s already present in the tech industry, and other industries where AI is being used. 

IMF chief Kristalina Georgieva published an official blog post on Sunday in which she called on government powers to establish effective “social safety nets and offer retraining programs” to counter the negative impacts of AI, according to CNN.

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“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions,” she wrote.

Georgieva published the post ahead of the annual World Economic Forum meeting in Switzerland, where the topic of AI is set to be a big topic of conversation. 

Sam Altman, the chief executive of ChatGPT-maker OpenAI, and Satya Nadella, the CEO of Microsoft, will also speak at the Forum later this week and be involved in a debate being called “Generative AI: Steam engine of the Fourth Industrial Revolution?”

“As AI continues to be adapted by more workers and businesses, it’s expected to both help and hurt the human workforce,” Georgieva said in her blog, according to CNN.

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Georgieva also stated that the negative impacts of AI are expected to hit nations with advanced economies. 

She explained that in more developed economies, up to 60% of jobs could potentially be impacted by AI, but half of those jobs could benefit from the productivity benefits of AI. 

“For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear,” wrote Georgieva.

CNN reported that within emerging markets, places with sustained economic growth, 40% of jobs are expected to be impacted by AI. In lower income nations, places with developing economies, 26% of jobs are expected to be impacted by AI. 

“Many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality,” stated Georgieva.

Central Bankers Around The World Claim The Fight Against Inflation Will Continue To Get Worse

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Central bankers from all over the world are claiming that the fight against high inflation rates will only continue to get more “serious and painful” if certain rates remain how they are currently.

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dollar

Surging US Dollar Wreaks Havoc on Global Economy

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The U.S. dollar is the strongest it has been in the last 20 years. The rising value of a dollar has worldwide ramifications, with international currencies plummeting in comparative value and foreign central banks hiking up interest rates to protect price stability.

The dollar continues to strengthen as the U.S. Federal Reserve continues its aggressive monetary policy, raising interest rates to bring down inflation in the U.S. economy. The Dollar Index, which measures the U.S. dollar against an average of six major global currencies, including the euro, Swiss franc, Japanese yen, Canadian dollar, British pound and Swedish krona, has risen 15% in 2022.

A stronger dollar can purchase more foreign currency. The British pound plummeted to a record low on Sept. 26, reaching $1.03 against the dollar in a near historic dollar-to-pound parity. Historically, the pound has always been valued higher than a dollar, usually upward of $1.20 against the dollar.

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The effects of a strengthening dollar reverberate throughout the global financial system since the dollar is the currency used in most international transactions. Recent shocks to the global economy, such as the war in Ukraine, supply chain disruptions and the pandemic, push up the dollar’s value even higher since companies and other countries stow their reserves in dollars during economic volatility.

The dollar is traditionally seen as a symbol of “stability and security” in terms of crisis. Moreover, despite ongoing inflation, the U.S. economy is still more stable than other nations’ economies. Consumer spending is still strong, and unemployment is still low.

George Saravelos, Deutsche Bank’s head of foreign exchange research, noted the building tension in the global economy.

“The dollar is experiencing its largest valuation overshoot since the 1980s. Amid extreme volatility, a global chorus of discomfort is slowly building.”

American tourists and U.S. consumers benefit from a stronger dollar since goods and services produced in other countries and sold in the U.S. become less expensive to purchase. A stronger dollar also helps U.S. companies import goods at lower prices. Tourists traveling abroad can also buy goods at lower prices since the dollar has stronger buying power.

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However, American businesses that export goods struggle under a strengthening dollar since goods made in the U.S. become more costly and less attractive to buyers in other countries. Multinational businesses that operate in other countries also make less profit when they convert revenue in foreign currency to U.S. dollars.

Smaller emerging economies worldwide especially struggle with the rising cost of the dollar since international companies borrow and trade money in dollars. The world’s commodities, like oil, industrial metals, wheat and soybeans, are priced in dollars and increasingly more expensive to import. Petrol now costs more in several countries worldwide. Countries with debt denominated in dollars will also see higher interest payments, no matter the initial exchange rate.

As reported by the NYTimes, Mr.Obstfeld, a U.C. Berkeley economist, spoke on the far-reaching impact of the Fed’s monetary policy.

“Central banks have purely domestic mandates, but financial and trade globalization have made economies more interdependent than they have ever been and so closer cooperation is needed. I don’t think central banks can have the luxury of not thinking about what’s happening abroad.”

At the same time, the consequences may be even worse for the global economy if the Fed does not bring down historical inflation rates in the U.S.

Central banks around the world are trying to raise the value of their currencies by increasing interest rates, similar to what the Fed is doing in the U.S. The U.K. increased its rate by 2%, and analysts predict they may raise it to as high as 6%. The European central bank has increased its interest rate by 1.25 percentage points. These rising rates may push many countries into a recession if raised too high by decreasing borrowing and spending and reducing economic activity.

COVID-19 Economy

New Covid-19 Variants Could Pose Major Threat To Global Economy In 2021

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According to the International Monetary Fund, the pandemic could potentially hinder a global economic turnaround this year despite the slew of mass vaccination programs being implemented throughout the world and various levels of stimulus packages helping assist some countries. 

The IMF does believe that the global economy will grow by 5% this year, which is .3% faster than they previously forecasted in the fall of 2020. The Fund claimed that this increase “reflects expectations of a vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies.” 

The IMF also estimates that the world economy shrank by 3.5% in 2020; the biggest decline since the Great Depression. Surging infections that began appearing at the end of 2020, renewed lockdowns, logistical issues with vaccine distribution, and a slew of new Covid-19 variants could make it extremely difficult for the global economy to recover. 

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Gita Gopinath is a chief economist of the IMF who recently uploaded a blog post regarding the IMF’s predictions for 2021 and beyond; the fund expects global growth to slow to 4.2% in 2022. 

“Much now depends on the outcome of this race between a mutating virus and vaccines to end the pandemic, and on the ability of policies to provide effective support until that happens.” 

Some countries are expected to recover much more quickly than others. China, for example, was one of the only global economies that actually grew in 2020. The country is currently projected to achieve an 8.1% economic growth this year as well. Even the United States is expected to emerge from their deep economic slump to see a 5.1% increase in growth. 

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“The 19 countries that use the euro are expected to see growth of 4.2% in 2021. The United Kingdom, which endured a 10% contraction last year as it left the European Union and is now battling a new coronavirus variant, would rebound with relatively modest growth of 4.5%,” according to the IMF.

The IMF continued to explain that “the wide divergence reflects an important extent differences across countries in behavioral and public health responses to infections, flexibility and adaptability of economic activity to low mobility, pre-existing trends, and structural rigidities entering the crisis.”

The pandemic overall is causing “exceptional uncertainty” in regards to economic recovery, and “although new restrictions following the surge in infections suggest growth could be weaker than projected in early 2021, other factors pull the distribution of risks in the opposite direction.” 

IMF claims that if the vaccine distribution and efficacy goes as smoothly as it’s currently projected to go, economic outputs could exceed these expectations by as much as 1% globally, which would be amazing for job markets everywhere.