Supreme Court rejects fast track of Trump tariff challenge by toy companies
Key Points
President Donald Trump's tariffs, a key part of his trade agenda, have drawn legal challenges from businesses and individuals questioning his authority to implement the high levies.
The Supreme Court ruling gives the Trump administration more time to file its response to the challenge from two toy companies.
The two toy companies argued that the International Emergency Economic Powers Act did not give Trump the authority to implement his tariffs.
The Supreme Court on Friday rejected a request from two toy companies to expedite their challenge to President Donald Trump's tariffs.
The ruling from the nation's high court means that the Trump administration now has the standard 30-day window to file its response to the challenge.
Two small family-owned companies, Learning Resources and hand2mind, argued that Trump lacked authority under the International Emergency Economic Powers Act to impose his April 2 tariffs.
The companies earlier this week asked the Supreme Court to expedite consideration of their challenge and bypass a federal appeals court.
"In light of the tariffs' massive impact on virtually every business and consumer across the nation, and the unremitting whiplash caused by the unfettered tariffing power the president claims, challenges to the IEEPA tariffs cannot await the normal appellate process," the companies argued in their request.
Rick Woldenberg, the chairman and CEO of Learning Resource and hand2mind, told CNBC that the Friday Supreme Court decision "was a disappointment but honestly just another twist in the road."
"You want to win every motion but sometimes you don't," he said, adding that, "ultimately this showdown will be at the Supreme Court."
Trump declared a national economic emergency under the IEEPA to justify implementing his tariffs without first getting congressional approval, a strategy that has drawn legal challenges from businesses and individuals questioning his authority
The U.S. Court of International Trade last month temporarily blocked Trump's tariffs, saying that the IEEPA, which became law in 1977, does not authorize a president to implement universal duties on imports.
But a federal appeals court earlier this month allowed Trump's tariffs to remain in effect until it hears arguments on that case at the end of next month.
— CNBC's Lori Ann Wallace contributed reporting.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
40 minutes ago
- CNN
Republicans might redraw House maps in Ohio and Texas to try to protect narrow majority
CNN — Facing the possibility of losing control of the U.S. House next year, Republicans are weighing aggressively redrawing congressional districts in two states in hopes of ousting several longtime Democratic lawmakers. In Ohio, a quirk in state law is giving Republican state legislators another run at drawing new lines for the state's 15 congressional districts. The goal would be to knock off two Democratic members of the House, giving the GOP a 12-3 advantage in the state's congressional delegation. State lawmakers could go even further and target a third Democratic seat. In Texas, meanwhile, Republicans are considering whether to hold a special legislative session to undertake a rare mid-decade map-drawing that supporters hope could result in the GOP picking up as many as five additional seats. Democrats need a net gain of just three seats to win the House, raising the stakes for Republicans and President Donald Trump, who could see a Democrat-led House block his legislative agenda and open new investigations of him in the second half of his final term. But redistricting is a double-edged sword: In drawing new lines, both states could also endanger GOP lawmakers by moving safe Republican territory into districts currently represented by Democrats. Adam Kincaid, president and executive director of the National Republican Redistricting Trust, favors an aggressive redistricting approach. 'It's a priority to keep the House, and Republicans should be looking for as many seats as we can get,' he said. The GOP's redistricting gains in 2022 were key to the party flipping the chamber in that election and retaining their majority in 2024, he added. 'There were a handful of seats that weren't politically possible to get before that may be possible now,' he added. 'It makes sense for Republicans to try ahead of 2026.' Redrawing maps is potentially risky for GOP incumbents if 2026 proves to be a favorable year for Democrats. Republicans will have to run in a year when Trump himself is not the ballot, helping to boost conservative turnout. 'It's both a gamble and an opportunity,' said Kyle Kondik, the managing editor of Sabato's Crystal Ball, a newsletter published by University of Virginia's Center for Politics. 'From the White House's perspective, would an aggressive Texas redraw increase their chances of holding the House next year? Yeah, probably. But it wouldn't guarantee anything.' Redistricting generally happens at the start of each decade to account for population shifts and ensure that each congressional and state legislative district holds roughly the same number of people. Some Democrats have denounced the potential rounds of mid-decade map-drawing, arguing that Republicans are trying to rig the process. 'Republicans are exploring further manipulation of egregious gerrymanders in red states like Texas and Ohio for one reason: they are terrified of the voters,' said Marina Jenkins, executive director of the National Democratic Redistricting Committee, in a statement. 'It's a brazenly corrupt attempt to shield themselves from accountability at the ballot box and it must be stopped.' A third redistricting battle, meanwhile, is playing out in Wisconsin where two legal actions filed last month are challenging a congressional map that favors Republicans in a battleground state that's narrowly divided along partisan lines. Both cases are before the state Supreme Court, which has a liberal majority. Texas could go after border Democrats All but one Republican member of the Texas congressional delegation won their seats with more than 60% of the vote last November. All 25 GOP-held districts voted for Trump by at least 15 points in 2024, Kondik noted. A new GOP map in Texas is likely to shift voters from safely red districts into ones held by Democrats to help boost the number of Republicans that Texas sends to Congress. Currently, under a 2021 map, Republicans control 25 of the state's 38 House seats. (One safely Democratic seat in the Houston area is vacant following the death of Rep. Sylvester Turner. The current Texas congressional maps are the subject of litigation brought by groups representing Black and Latino voters who contend the lines drawn in 2021 discriminate against voters of color.) Clear targets include Democratic Reps. Henry Cuellar and Vicente Gonzalez, who represent border communities that have shifted to the right in recent years. Trump won both districts in 2024, part of a broader realignment among Latino voters. House Minority Leader Hakeem Jeffries, a New York Democrat, argued recently that an aggressive redraw could backfire on Republicans. 'If you make any changes to that map … they are going to endanger four to six Republican incumbents who are serving in the Congress right now,' he said to reporters. 'Be careful what you wish for.' Other Democrats have condemned any effort to change the district lines to further benefit the GOP. 'Texas Republicans should stand by the rule of law and the maps they drew four years ago, or they should finally work with Democrats to draw fair, independent congressional maps,' state Rep. Gene Wu, who chairs the Democratic caucus in the Texas House, said in a statement. 'Anything less is a desperate power grab from a party that knows Texas voters are ready to show them the door.' The White House did not respond to a CNN inquiry about the effort, which has been the subject of recent closed-door meetings in Washington among members of the state's congressional delegation. The state legislature, which finished its regular session earlier this month, is not scheduled to meet again until 2027. But Texas Gov. Greg Abbott has the authority to call special sessions and determine the issues lawmakers will address. Aides to the Texas governor did not respond to CNN inquiries. Last week, Abbott told reporters that he had not 'identified a need for a special session,' according to the Dallas Morning News. The governor, however, did not close the door on the possibility, saying he was reviewing bills from the regular legislative session that could result in vetoes that would require him to summon lawmakers back to Austin to address outstanding matters. Abbott also declined to tell journalists whether Trump had asked him to order a redraw. Ohio GOP looks for as many as three seats In Ohio, the mid-decade redrawing of its congressional districts is an outgrowth of a state law that requires maps approved without bipartisan support to be redrawn after four years. Crafting new maps for next year's midterms will ultimately fall to the Republican-controlled General Assembly. The current map, crafted by a GOP-led legislature in 2022, has 10 Republicans and five Democrats. Two Democratic incumbents are viewed as likely targets of the GOP: Reps. Marcy Kaptur, a veteran lawmaker who represents northwestern Ohio, and Emilia Skyes, whose district includes Akron. Last year, Kaptur eked out a win even as her district went for Trump. Skyes, meanwhile, represents a highly competitive district that former Vice President Kamala Harris barely won. If Republicans choose an even more aggressive approach, a third Democrat, Rep. Greg Landsman, who represents Cincinnati, could be endangered.
CNBC
43 minutes ago
- CNBC
China's property sector has been in an extended slump. Shrinking population is making it worse
China's real estate sector has grappled with a deepening downturn for years. Now a shrinking population is casting another shadow over the stagnant property market. Goldman Sachs estimates that demand for new homes in Chinese urban cities will remain suppressed at under 5 million units per year in the coming years — one fourth of the peak of 20 million units in 2017. "Falling population and slowing urbanization suggest decreasing demographic demand for housing" in the coming years, Goldman Sachs economists said in a note Monday. The country's population is estimated to fall to below 1.39 billion by 2035 from 1.41 billion, according to World Bank's latest data, said Tianchen Xu, senior economist at Economist Intelligence Unit, citing a combination of fewer newborns and more deaths from an ageing population. Shrinking population will cripple home demand by 0.5 million units every year in the 2020s and a lead to a bigger dent of 1.4 million units annually in the 2030s, Goldman Sachs estimates, compared to the positive contribution of 1.5 million units in the 2010s when population was on a steady rise. Fertility rate in the country has continued to fall even after Beijing relaxed its one-child policy in 2016, and despite Beijing's efforts to incentivize child-bearing via cash incentives. Stagnant incomes, instability over job prospects and a poor social security system have dissuaded Chinese young people from having more babies. Beijing's pronatalist policies will likely have "limited effect" as they do not address the deep-rooted issues, Xu said, such as high economic costs for child-bearing and people's tendency to postpone marriage for career progression and "an embrace of individuality." Underscoring the declining birth rates, nearly 36,000 kindergartens across the country closed down over the past two years, with the number of students in preschools falling by over 10 million. That's according to CNBC's calculation of the official data released the Ministry of Education. Similarly, the number of elementary schools dropped by nearly 13,000 between 2022 and 2024. That is rippling through school-adjacent housing markets that once saw inflated prices on the back of strong demand for better public schools. The once-sizable premium was fueled by access to elite schools and expectations of rising property values. But with a shrinking population and local governments scaling back district-based enrollment policies, the added value of these homes has started diminishing, according to William Wu, China property analyst at Daiwa Capital Markets. A mother of a 7-year-old boy in Beijing told CNBC that the price of her apartment had fallen by about 20% from over two years ago when she bought it. It cost her roughly twice the average price for an apartment in the city, so that her son could attend a good elementary school. The number of children entering primary school in 2023 reached the highest level in over two decades, according to Wind Information, before dropping in 2024, the year her son enrolled. That demographic shift is an additional overhang to the property market, which has struggled to emerge from a painful downturn since late 2020. Despite a raft of central and local government measures since last September, the real estate slump has shown little sign of abating. New home prices fell at their fastest pace in seven months in May, according to Larry Hu, chief China economist at Macquarie, extending a two-year stagnation, despite the government efforts aimed at arresting the decline. New home sales in 30 major cities fell by 11% year on year in the first half of this month, worsening from the 3% drop in May, Hu said. "Holders of investment properties are likely to be net sellers (to owner-occupiers) for the foreseeable future," over expectations that home prices will continue to fall, Goldman Sachs estimates. While Goldman expects the rise in China's urbanization rate to temper in the coming years, hurting urban housing demand, Wu said demographic drag on the property market was not yet "imminent" and may take decades to play out. In the nearer term, "some of this decline will be offset by continued urbanization, and housing upgrade demand," Wu said, as the latter would account for an increasing share of China's total housing demand.
Washington Post
an hour ago
- Washington Post
Israel-Iran live updates: Trump envoy in correspondence with Iranian officials, White House says
Israel and Iran continued to exchange strikes overnight as the conflict entered its ninth day. President Donald Trump's special envoy to the Middle East, Steve Witkoff, remains in 'correspondence' with Iranian officials, White House press secretary Karoline Leavitt told The Washington Post, though Witkoff did not attend talks between the top diplomats representing Iran, Britain, France, Germany and the European Union in Geneva on Friday. Trump was dismissive of the talks, which ended without a breakthrough: 'Europe is not going to be able to help on this one,' he told reporters. The Council of the Arab League issued a statement condemning Israel's actions in Iran as 'a clear violation of international law and a threat to the security of the region' and calling for a return to negotiations, after a meeting in Istanbul on Friday. 'The only way to resolve crises in the region is through diplomacy and dialogue,' the statement, which was shared by the Jordanian foreign ministry on social media, said. Four days after President Donald Trump abruptly left a summit of global leaders in Canada, calling on civilians to 'evacuate Tehran' and stoking global talk of war, the president on Friday said he still wanted more time to decide.
