Court's tariffs ruling offers US businesses a reprieve but they aren't ready to celebrate
NEW YORK (AP) — Businesses that have been unsettled by President Donald Trump's on again, off again tariffs grappled Thursday with how much faith to put in the latest reprieve, which came from a federal court that halted most of the taxes on foreign imports.
A three-judge panel of the U.S. Court of International Trade ruled late Wednesday that Trump overstepped his authority when he invoked the 1977 International Emergency Economic Powers Act to declare a national emergency as justification for his wide-ranging tariffs.
The Trump administration has filed a notice of appeal and requested an emergency stay that would keep the tariffs in place during ongoing legal proceedings that are widely expected to reach the U.S. Supreme Court.
Business owners and the National Retail Federation said that without a definitive word in the case, the New York-based trade court's ruling only creates more uncertainty and makes it harder to budget and plan orders.
'The ruling by the U.S. Court of International Trade blocking most of President Trump's tariffs is just another chapter in this difficult journey toward a clear, consistent and strategic trade policy," Jonathan Gold, the trade group's vice president of supply chain and customs policy, said in an emailed statement. "We urge rapid resolution as this process continues in the courts.'
The president invoked the emergency powers law in early April when he imposed varying import tax rates on products from dozens of countries, including the biggest trading partners of the U.S. After financial markets showed signs of panic, Trump lowered the rate to 10% for every country except China, whose goods were taxed at 145%.
Jonathan Silva, the owner of WS Game Company, said he did not intend to change his plans based on the ruling. He has the board games his company sells made in China,
'We know that this will take time for the appeals process to take place and a final ruling to be instituted,' Silva said. 'But we are hopeful that this will be the beginning of a more academic use of tariffs in the coming months and years. All we want to do is have certainty in the environment that we are operating in, as the day-to-day retaliations and pauses are not conducive to business operations.'
The CEO of electronics retailer Best Buy, Corie Barry, told reporters on Thursday that the legal news did not make her more or less optimistic but rather underscored the importance of continuing to remain agile while not changing course in response to near-daily tariff developments.
'I don't think there's anything we would do differently based on the news overnight,' Barry said. 'What I really tried to work with the team on is to not actually overreact to any given moment in time, but instead to stay maniacally focused on our customers and ensure we are bringing the right assortment, price, and (promotions) to them, whatever the backdrop.'
Barry told analysts that Best Buy has taken a variety of steps to offset higher tariff costs, including pushing vendors to spread out where they do manufacturing. The company is increasing some prices to absorb tariff-related costs, she said, calling the move 'a last resort.' She declined to be specific given the fluid situation.
Jim Umlauf, whose business, 4Knines, based in Oklahoma City, makes vehicle seat covers and cargo liners for dog owners and others, said the court ruling did not offer reassurance but only further complicated his decision-making.
'At this point, we don't know whether the decision will hold, whether it applies to (Trump's) original 2018 tariffs, or how it will be enforced,' he said. 'Without clarity, we're left planning around a moving target. Like many others, we've already locked in quotes and made purchasing decisions assuming tariffs would remain in place. This development, rather than offering relief, introduces new logistical complications at the worst possible time.'
Kelsey O'Callaghan, the founder of a Salt Lake City kitchen and bathroom accessories company called Dorai Home, said she expected the trade war to continue. The constant flux since Trump's return to office has made her 'numb,' but O'Callaghan said she has tried to make educated decisions.
The company already postponed the launch of several new products, laid off the CEO and some other key employees. It paused order shipments from China in early April but resumed some on a staggered basis when the president Trump lowered the rate for Chinese goods to 30% for 90 days.
Now, Dorai Home plans to test price increases to see if shoppers will still buy its products.
'In a business sense, you have to try to create as much certainty and stability as you can with the variables you can control," O'Callaghan said.
But some businesses were more optimistic. Burlington Coat Factory CEO Michael B. O'Sullivan said Thursday that the tariff pause might help discount retailers like his that buy excess inventory from other retail companies.
The court ruling and continued uncertainty may further fuel a production race that started when the tariff rate for Chinese products were substantially reduced, O'Sullivan said.
'There's now a huge rush on production and shipping across the industry. Now, the court decision last night could add to that rush,' he said. 'Instead of shortages, this topsy-turvy stop/start surge has the potential to create attractive buying opportunities.'
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CBC
38 minutes ago
- CBC
1 exam, 50% of final grade. Students say Quebec must follow rest of Canada and change 'unfair' system
Social Sharing As students across the province get ready to write their ministerial exams, the pressure is high – and so are the stakes. Luca Di Fiore, a Grade 11 student, says the final exam feels like a judgment. "It seems unfair almost after everything you do throughout the entire year," he said. "To hear that one test that you do at the end of the year, irrespective of everything you've accomplished throughout the entire year, could just change everything for you [is unfortunate]." Quebec is the only province in Canada where some final exams account for 50 per cent of high school students' final grades. Some teachers and students have been pushing for change and wish to be heard. The province has standardized Grade 10 and 11 exams in French, English, mathematics, history and science – all worth between 25 and 35 per cent of final grades. But some, including history of Quebec and Canada and basic French as a second language, count for 50 per cent. Other Canadian provinces also administer standardized exams, but none are weighted as heavily. Quebec wasn't always the only province placing such emphasis on these exams. Alberta brought its equivalent – Diploma Exams – down to 30 per cent 10 years ago. Di Fiore explained that if students are unable to retain everything they learned during the year, it can make all their hard work feel "pointless" when it all comes down to just three hours. His classmate, Mia Beauchamp, shared that a poor exam result has the power to bring down her mood and her confidence and makes her doubt whether she'll pass the year. "I think it's very stressful because we can't remember it all. Teachers aren't expected to remember it all, why are we?" she asked. She believes the exam's weight should be reduced. Di Fiore proposed replacing the ministerial exam with monthly standardized tests from the ministry. Although he acknowledged the value in maintaining test uniformity to ensure consistent teaching across the province, he emphasized the need to discuss lowering the exam's weight. WATCH | Students, teachers want standardized testing to weigh less: Do ministerial exams count for too much in Quebec high schools? 9 minutes ago Duration 2:59 'Not the way the real world works' Paul Berry, a Grade 10 and 11 mathematics and history teacher at Options High School, is also advocating for a reduction in the final exam's weight. While he sees their importance, he argued they shouldn't hold the level of prominence currently given to them. "[The government treats] these exams like they're sacred texts and like they're the be-all and end-all," he said, adding that the experience is very heavy for many students. "There's nothing really in life where you're going to be facing that type of situation … It's just not the way the real world works." Berry and his colleagues work with many students who struggle with mental health and learning disabilities. He expressed concern over whether these students can effectively demonstrate their knowledge under such pressure. "For the most vulnerable students, it's really them who get hit the hardest," he said. Berry also views the situation as a sign of distrust in teachers, who spend their entire year with their students. "It shows a real lack of appreciation for the work that we do and a lack of concern for the real-life consequences that some of these students will face if they're not able to meet what the government considers to be the standard," he said. Current model limits teachers, some teachers say Michael Wadden, a Grade 10 and 11 history teacher at a high school in Montreal's West Island, remarked that it often feels like teachers are "teaching to an exam." He wishes he had more freedom to engage students through alternative methods – like a mock parliament, debates, analysis and reflection – but says those activities risk cutting into exam preparation time. Wadden argued that the current model limits students' ability to reflect, express their opinions and take a stance – skills he says all teachers would love to encourage them to develop, especially in a course that teaches Canadian and Quebec history. Around this time of year, he starts to see more absenteeism as students realize much of the classroom time will be dedicated to reviewing material they feel they can study on their own. Wadden also pointed out that some of his students are grappling with trauma and issues at home. "To have everything so dependent on one day and three hours is just not fair to these kids," he said. Wadden's colleague, Esther Ste-Marie, a Grade 7 social studies teacher, noted that even though her students don't yet write ministerial exams, teachers are already working hard to prepare them for Grade 10. Still, this year, she's trying something new: prioritizing a project-based approach and critical thinking. "It's been working well, but I still have at the back of my head … my students. They still need to be able to do a formal test because in Grade 10, they'll have to do it like everybody else," she said. Ste-Marie pointed out that this reality ties teachers to the responsibility of preparing students for ministerial exams. "The ministry is asking us to create those students ready for the 21st century skills to make them lifelong learners, to make them critical thinkers, but yet they're limiting us," she said. "We want them to think outside the box, but we're not allowing them to think outside the box." How Alberta's exam reform benefited students Jason Schilling, the president of the Alberta Teachers' Association, explained that the province's decision to make final exams worth 30 per cent instead of 50 significantly relieved pressure on students. "It also allowed me as a teacher to assess my students in a variety of different ways that would show what the students know more than necessarily sitting down and doing their reading comprehension in a written test in such a high stakes kind of moment," he said. "When it's not weighted as much or if it's not weighted at all, it does allow you flexibility to be more creative." Quebec Education Minister Bernard Drainville stated last week that he is not considering any changes. "Fifty per cent to ensure equality, to ensure that we can compare results from one school to the next, from one region to the next," he told reporters. But Di Fiore, while understanding Drainville's perspective, disagrees. "If we're talking about equality, if everybody's at 30 [per cent], that's still equality, right?" asked Di Fiore. "And why are students getting pressure put on them if the thing that we're attempting to evaluate with these [exams] is the school systems?" Di Fiore believes those affected by the current system deserve a voice in the decision. "If you're a doctor, you talk to your patient about what they're feeling," he said. "I think everybody should be involved in that conversation so we can get all perspectives." WATCH | Learn more about Quebec's plan to ban cellphones in schools: Full cellphone ban part of new 'civility' rules in Quebec schools 1 month ago Duration 2:43 New regulations will prohibit students in public and private schools from using electronic devices on school property as of September 2025. Quebec Education Minister Bernard Drainville hopes the regulation will lead to better concentration and socialization between students. The rules also set requirements for how students address teachers and staff.
Globe and Mail
39 minutes ago
- Globe and Mail
Billionaire Warren Buffett Sold 39% of Berkshire's Stake in Bank of America and Is Loading Up on a Famed Consumer Brand That's Skyrocketed 7,700% Since Its IPO
May was a month to remember for Wall Street's most-famous billionaire money manager, Warren Buffett. On May 3, the company Buffett has been CEO of for six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), reported its first-quarter operating results, and the Oracle of Omaha announced during his company's annual shareholder meeting that he'd be stepping down as CEO at the end of the year. But this wasn't all. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Institutional investors with at least $100 million in assets under management were required to file Form 13F with the Securities and Exchange Commission by no later than May 15. Even though Berkshire's first-quarter operating results made clear that Buffett was a net seller of stocks for a 10th consecutive quarter, the company's cash flow statement didn't spill the beans on which stocks he was buying and selling. A 13F opens the proverbial hood for investors to see which stocks Wall Street's preeminent billionaire investor bought and sold in the first quarter. Based on Berkshire Hathaway's 13F for the March-ended quarter and various regulatory filings, we know that Buffett purchased 13 stocks, including a mystery company. On the flipside, Berkshire's chief oversaw the removal or reduction of eight stocks. What really stands out is Buffett's persistent selling of one of his (current) core holdings, and his continued purchasing of a beloved consumer brand that's skyrocketed since it became a public company 21 years ago. Bank of America stock gets the axe for the third consecutive quarter No sector tends to be favored more by the Oracle of Omaha than financials. Even though banks and insurance companies are relatively boring businesses that ebb-and-flow with the health of the U.S. economy, it's a sector that intrigues Berkshire's chief and for which he has a good understanding. For years, money-center giant Bank of America (NYSE: BAC) was Berkshire Hathaway's largest financial stock and No. 2 holding by market value, behind only Apple. But beginning on July 17, 2024 -- we know this specific date, because Berkshire Hathaway held in excess of 10% of BofA's outstanding shares, and was thus required to file Form 4 detailing all shares purchased and sold until its ownership dipped below 10% -- the selling spigot opened. For three consecutive quarters, Buffet has sold shares of Bank of America. What was once a position of more than 1.03 billion shares has been reduced by more than 401 million shares, or 39%. As of this writing on May 28, Bank of America has fallen to No. 4 in Berkshire's $276 billion portfolio, behind Apple, American Express, and Coca-Cola, in terms of market value. This persistent selling of Bank of America stock may very well be nothing more than benign profit-taking. Warren Buffett orchestrated a capital infusion with BofA in August 2011 that ultimately netted Berkshire the option to exercise warrants for up to 700 million shares of BofA stock at $7.14 per share. Buffett jumped at the opportunity to do so in mid-2017. With the peak marginal corporate income tax rate at its lowest level since 1939, locking in gains at an advantageous rate would be very Buffett-like. But it's also possible there are more nefarious reasons behind the Oracle of Omaha's steady paring of his company's Bank of America stake. For example, Bank of America is the most interest-sensitive of all money-center banks. When the Federal Reserve rapidly increased interest rates between March 2022 and July 2023, no big bank enjoyed a more tangible benefit to net interest income than BofA. Yet with the nation's central bank now in the midst of a rate-easing cycle, it's BofA that could see its net interest income hit hardest if rates dramatically fall. Additionally, Berkshire's CEO is an unwavering value investor -- and Bank of America is no longer the screaming bargain it once was. In August 2011, Bank of America's common stock was trading at a 62% discount to its book value. Through much of the first quarter, BofA stock traded at a 20% to 30% premium to its book value. While this isn't egregiously (or even historically) pricey, it's getting near Bank of America's priciest valuation, relative to book, since prior to the Great Recession. The Oracle of Omaha loaded up on this consumer goods stock for a third straight quarter While Warren Buffett has been continually reducing Berkshire Hathaway's exposure to Bank of America since July 2024, he's been building up a sizable stake, worth more than $1.2 billion (as of March 31, 2025), in one of America's most-famed consumer brands. In mid-November, when Berkshire Hathaway released its 13F detailing third-quarter trading activity, investors took note that Buffett put a slice of Domino's Pizza (NASDAQ: DPZ) on his proverbial plate. Berkshire Hathaway gobbled up 1,277,256 shares in the September-ended quarter, added 1,104,744 shares in the December-ended quarter, and topped things off in the latest quarter with 238,613 more shares. All told, Berkshire Hathaway now holds 2,620,613 shares of Domino's Pizza, which equates to a 7.7% stake in the company. Though Domino's Pizza stock wasn't much of a hit with investors through its first six years as a public company, it's been virtually unstoppable over the last 15 years. Inclusive of dividends, Domino's is nearing a total return of almost 7,700% since its July 2004 initial public offering (IPO). Domino's massive outperformance of the benchmark S&P 500, and the reason(s) Buffett has been a buyer, can be broken down to three factors. The first variable is an all-important intangible that can be a dealbreaker for Warren Buffett and his top advisors: trust. Domino's Pizza kicked off a fresh advertising campaign in 2009 that flat-out admitted its pizza was terrible and vowed to do better. The company's straightforward marketing campaign and efforts to engage and maintain transparency helped it win over consumers. It takes a long time to build trust with consumers, but Domino's has done an exemplary job. Secondly, Domino's management team has consistently laid out multiyear growth strategies and been able to achieve them. The latest of its plans is the "Hungry for MORE" initiative. Domino's five-year plan is to lean into technology to spruce up its supply chain and increase productivity. It'll also be relying on its franchisees to help build up the company's brand. With 31 consecutive years of international same-store sales growth under its belt, clearly the company is doing something right. Lastly, Berkshire's head honcho is a big fan of businesses with hearty capital-return programs -- and Domino's doesn't disappoint. It's raised its base annual dividend for 12 consecutive years and has been a relatively consistent buyer of its own stock. Share buybacks have the potential to increase earnings per share for companies with steady or growing net income. Should you invest $1,000 in Domino's Pizza right now? Before you buy stock in Domino's Pizza, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Domino's Pizza wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
CBC
41 minutes ago
- CBC
Scotiabank holds customer responsible for almost $20K in credit card fraud
Social Sharing Jordon Judge's cellphone rang as he sat in his local Vancouver coffee shop last October — caller ID said the person was from Scotiabank. He had no idea it was actually a fraudster who had manipulated the call display, a practice known as phone call "spoofing." The fraudster said he was calling to flag two suspicious charges that were coming through on Judge's Scotiabank Visa card. Judge said he hadn't approved those charges and the caller said they would be blocked. But two days later, Judge spotted two large charges on his credit card statement, totalling almost $20,000. "Those were not my charges," he told Go Public. "So it was definitely astonishment." Got a story you want investigated? Contact Erica and the Go Public team at gopublic@ It was the beginning of a long and frustrating process, during which Scotiabank continued to insist he was liable for the fraudulent charges. Credit card fraud is a growing problem. The Canadian Anti-Fraud Centre doesn't track how much money people lose to it, but says that over the past three years, an increasing portion of identity fraud cases have involved compromised credit cards. WATCH | On the hook for $20K: Bank blames customer for $20K in credit card fraud | Go Public 5 hours ago Duration 2:09 The Ombudsman for Banking Services and Investments says complaints related to fraud are the number one issue it deals with, and only e-transfers have more fraud complaints than credit cards. Under federal law, a person's maximum liability for unauthorized credit card transactions is generally capped at $50 unless the bank can prove the customer was grossly negligent in protecting their card. A cybersecurity expert says increasing fraud and the rise in complex technology means financial institutions should be conducting thorough investigations and providing clear evidence when holding customers liable. "All that the bank has done is accuse [Judge] of either negligence or malice," said Claudiu Popa, who has 35 years' experience in cybersecurity and wrote The Canadian Cyberfraud Handbook. "The bank has to prove that the customer is the one who perpetrated this quite significant and sophisticated fraud." Scotiabank declined an interview request, did not answer any written questions and instead sent a brief statement, reminding customers to safeguard their personal information. What happened The fraudster who called Judge asked for his birth date and mother's maiden name, which Judge shared. But then the fraudster asked him to share a "one-time passcode" — a type of two-step verification — that was texted to his phone. Judge says he refused to do that, because the message also told him not to share the code with anyone, and said that no one from Scotiabank would ever ask for it. The fraudster claimed that he stopped the charges from going through and hung up. But two days later, Judge discovered a charge for $17,900 to Anglia Ruskin University in the U.K. on his statement, and a second for $1,800, supposedly paid to someone by the name of Paula S. Taylor. "I wasn't worried at the time because I knew those weren't my charges," said Judge. "I thought I couldn't be held accountable for it." No transparency Judge filed a request for compensation with Scotiabank, which sent him a letter a few weeks later, saying the bank had "examined all relevant documentation" and concluded that he was responsible for the charges. The letter did not outline what evidence had been reviewed and did not explain why the bank concluded he should be on the hook for almost $20,000 — plus the growing interest. "When people sign up for credit cards, they're under the assumption that if they get scammed, they're not liable for the purchases made on their credit card," said Judge. "Apparently that's not the case." He appealed, and a second letter — from Scotiabank's Escalated Customer Concerns Office (ECCO) — also found Judge responsible, stating that a one-time passcode was used for the university charge, calling it "a feature that has a proven track record in mitigating fraudulent and nefarious activities". The ECCO letter said that because the code was sent to Judge's phone, it "indicates" that the code was disclosed. Judge appealed that decision, but Scotiabank's Customer Complaints Appeals Office also claimed in a letter that evidence "suggests" Judge revealed a one-time passcode. "Evidence that may 'suggest' something isn't evidence of a fact," said Geoff White, executive director of the Public Interest Advocacy Centre. "One would like to see more in terms of actual evidence demonstrating that the customer was negligent — rather than simply an assertion." White also said the onus shouldn't be on individuals to prove they are innocent of a crime. "The onus is in fact on institutions to take care of their systems," said White. "Make sure that their processes are secure." Popa, the cybersecurity expert, took a look at Scotiabank's correspondence and says the financial institution didn't provide evidence of "the most basic investigation," which would include reviewing a log of activities that would be time-stamped — such as showing when an individual received the one-time passcode and when it was entered into a web interface. "This was never provided," said Popa. "Nor was there an indication that this kind of log was inspected." Contrary to Scotia's insistence that a one-time passcode is a proven fraud deterrent, Popa says a code sent via email or SMS is vulnerable to "a number of different types of compromises" and is less safe than using an authenticator app. Cellphones can be hacked using malware or spyware and SIM cards can be hijacked — allowing fraudsters to intercept text messages. The Canadian Anti-Fraud Centre also told Go Public that it recommends people use an authenticator app when possible. "Unlike SMS/text messages or email messages, authenticator apps generate time-sensitive passcodes that are not vulnerable to SIM swapping or potential text message and email interception," wrote CAFC spokesperson Jeff Horncastle. The Quebec-based advocacy group Option consommateurs has been calling on the federal government to strengthen protections for banking customers in cases of fraud. In a proposal to MPs earlier this year, the organization said the Bank Act should require transparency when a bank investigates, and clarify that the burden of proving the customer was highly negligent rests on the bank. Judge gets his money back Go Public contacted Anglia Ruskin University to ask about the charge on Judge's credit card. A representative said Scotiabank never contacted the university — another disappointment to Popa. "Why would you not contact an organization that you know exists?" asked Popa. "They have a duty to investigate and to protect their customers." After Go Public made several inquiries with the university, it said it conducted an investigation and reimbursed Judge. A spokesperson said it could not elaborate on its findings, such as whether the money was used to pay for someone's tuition. Go Public also asked Scotiabank several times what evidence it had to hold its customer responsible for the fraudulent charges. Although the bank did not reply, it recently credited Judge's bank account — covering the outstanding $1,800 paid to "Paula S. Taylor" and the interest that had accrued on both charges. Judge says no one from Scotiabank contacted him to explain the about-face. "I do think it's ridiculous that it took the media to get involved until they decided they would even act as if they cared," said Judge. Previously, Scotiabank had offered Judge $200 as a "goodwill gesture," but said he would have to acknowledge his claim was resolved and drop any further action. Judge declined. Although he has been fully compensated, Judge had to push for almost eight months, and is still left without any answers about why Scotiabank insisted for so long that he was responsible for the fraud. "My biggest concern is that there are people in his situation … who may not have the ability to pressure their financial institution to be more transparent or to recognize the fact that they might not be guilty," said Popa, the cybersecurity expert. "People are out there who are simply being silently victimized."
