Appeals court allows Trump's tariffs to continue for now

Summary

Marketplace Morning Report: Appeals Court Allows Trump's Tariffs to Continue for Now

Release Date: May 30, 2025

In this episode of the Marketplace Morning Report, host David Brancaccio delves into the latest developments surrounding President Trump's tariffs, the economic well-being of U.S. households, the resolution of a major Boeing fraud case, and shifting trends in summer travel demographics. This summary captures the key discussions, insights, and conclusions from the episode, enriched with notable quotes and timestamps for reference.

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1. Trump's Tariffs Remain in Effect Temporarily

Legal Standpoint and Current Status

David Brancaccio opens the discussion by addressing the fluctuating status of President Trump's import tariffs:

"Wednesday began with President Trump sweeping April tariffs on track. By late in the day, those import taxes were ruled illegal. Here. On this Friday, that ruling is on hold with tariffs on marketplaces."
— David Brancaccio [01:16]

Henry Epp, a legal analyst, explains that the appeals court has temporarily upheld the tariffs, maintaining their enforcement while further legal arguments are considered:

"The appeals court has stayed the trade court's ruling and that means Trump's tariffs are still in effect for now, but only while the appeals court considers arguments in the case."
— Henry Epp [01:44]

Implications for Trade Negotiations

Brancaccio probes the impact of these legal developments on international trade negotiations:

"How do these legal challenges and rulings affect negotiations?"
— David Brancaccio [02:23]

Henry Epp responds by highlighting the administration's strategy and the current state of U.S.-China talks:

"Treasury Secretary Scott Besant told Fox News yesterday that the court rulings haven't changed the approach of other countries and that they're still, quote, coming to us in good faith to try to reach deals."
— Henry Epp [02:35]

He further adds:

"The administration's 90-day pause on higher tariffs ends in July. But if it loses that leverage through the courts, the administration does have other ways it could impose tariffs on certain countries, though they may take more time to implement."
— Henry Epp [02:35]

Potential Supreme Court Involvement

The possibility of the case escalating to the Supreme Court remains:

"Ultimately, the case could land at the Supreme Court."
— Henry Epp [02:23]

This ongoing legal battle underscores the volatility and uncertainty in trade policies under the current administration.

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2. Market Updates and Economic Well-Being of U.S. Households

Stock Market Response

Brancaccio transitions to the stock market, noting a downturn influenced by tariff uncertainties:

"S&P and Nasdaq futures are both down a tenth percent."
— David Brancaccio [02:35]

Survey on Financial Well-Being

New Federal Reserve data reveals a concerning trend among U.S. parents:

"Only 65% of parents with kids under 18 say they're, quote, doing okay financially or living comfortably now. That's down 10 percentage points since 2021, a Covid year."
— David Brancaccio [03:16]

Samantha Fields explores the factors contributing to this decline:

"Life has gotten a lot more expensive since 2021."
— Samantha Fields [03:53]

Rising Costs and Structural Issues

Kristen Schwab elaborates on the increased expenses faced by families:

"Any sort of expense that you encounter for your household just gets bigger when you have children in that household."
— Kristen Schwab [04:03]

Suzanne Kahn from the Roosevelt Institute adds:

"The financial struggles many parents face predate the pandemic and inflation."
— Samantha Fields [04:19]

Key structural issues include:

• Affordable Childcare: Costs have surged nearly 30% since before the pandemic.
• Housing: Skyrocketing housing costs add additional strain.

These financial pressures force families to make difficult choices regarding workforce participation, which has broader implications for the economy:

"Families are having to make really hard choices about whether and how much caregivers participate in the paid workforce and how much they are at home. And that's not good for the economy."
— Dana Farber Representative [04:45]

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3. Justice Department Concludes Boeing's Fraud Case

In a significant legal development, the Justice Department decides to end its prosecution of Boeing in a criminal fraud case related to the 737 Max crashes. The resolution includes:

"There's a deal in the works for Boeing to pay $1.1 billion in fines and compensation to families of 346 people who died."
— David Brancaccio [05:07]

This settlement marks a pivotal moment in holding Boeing accountable for regulatory oversights and fraudulent activities that contributed to the tragic crashes.

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4. Shifting Demographics in Summer Travel

Wealth Disparity in Travel Plans

As summer approaches, there is a notable shift in who is traveling:

"Half of all travelers will be from households making $100,000 a year or more. Now, just two years ago, just over a third of travelers made 100k or more."
— David Brancaccio [06:57]

Kristen Schwab discusses the implications of this trend:

"Americans are still planning on traveling this summer. Many of them are just doing it a bit differently."
— Kristen Schwab [07:21]

Impact on the Airline Industry

The move towards local tourism is unsettling airlines:

"The shift to local tourism is making the airline industry nervous,"
— Brian Terry [07:56]

Brian Terry explains the airlines' response:

"Airlines have pared back their capacity for this summer and into the fall, averaging by about 5%. To make up for the revenue gap, they're focusing on top-tier travelers who are more likely to make upgrades and still long haul traveling."
— Brian Terry [08:02]

International Travel Concerns

There is a slight decrease in demand for European destinations and a rise in interest in Asia Pacific:

"We are seeing a slight pullback in demand for Europe and a slight increase in demand for the Asia Pacific area."
— David Brancaccio [08:13]

Henry Hartevelt, a travel industry analyst, warns about challenges in attracting international tourists to the U.S.:

"There certainly is more hesitancy for a variety of different reasons. Some of it's political, some of it's related to trade."
— Henry Hartevelt [08:41]

He further notes that travel booking trends can reflect broader economic sentiments:

"Travel booking numbers can be a sort of proxy for how consumers feel about the economy and where it's heading."
— Kristen Schwab [08:49]

Advance Reservations Reflecting Economic Confidence

Most travelers are booking well in advance, indicating a level of economic confidence:

"Most people have to feel secure enough with their jobs and savings to book a big trip."
— Kristen Schwab [09:13]

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5. Closing Remarks

David Brancaccio wraps up the episode by acknowledging the contributions of the production team and teasing related content:

"Can we invest our way out of the climate crisis? Five years ago it seemed like Wall Street was working on it until a backlash upended everything."
— David Brancaccio [09:42]

Listeners are also encouraged to check out Amy Scott's podcast, How We Survive, which investigates the evolution of climate-conscious investing.

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This episode of Marketplace Morning Report provides a comprehensive overview of significant economic and legal developments affecting households, businesses, and international relations. From the temporary reinstatement of Trump's tariffs and their implications on global trade to the rising financial struggles among U.S. parents and changing travel behaviors, the report offers insightful analysis into the dynamic state of the economy and consumer behavior.

Transcript

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[David Brancaccio]

Index, like a stock index, given import duties one day, ruled illegal the next, and put on hold, we will update you. I'm David Brancaccio in New York. Wednesday began with President Trump sweeping April 2nd tariffs on track. By late in the day, those import taxes were ruled illegal. Here. On this Friday, that ruling is on hold with tariffs on marketplaces. Henry Epp is following the legal hockey game here. Henry, where's the puck this morning?

[Henry Epp]

Well, so it's important to note that the latest move is temporary. The appeals court has stayed the trade court's ruling and that means Trump's tariffs are still in effect for for now, but only while the appeals court considers arguments in the case from the companies and states that sued over these tariffs and from the administration itself. The plaintiffs have until June 5th to file a motion. The government has until June 9th. And so the tariffs on imports from most countries across the globe are still active until the court receives those filings. And we should know fairly soon after that whether or not they stay in place while this works its way through the courts. Ultimately, the case could land at the Supreme Court.

[David Brancaccio]

Now, the president and his team see tariffs as intrinsically good, but also as a tool to force trade concessions from partners other countries. How do these legal challenges and rulings affect negotiations?

[Henry Epp]

Well, Treasury Secretary Scott Besant told Fox News yesterday that the court rulings haven't changed the approach of other countries and that they're still, quote, coming to us in good faith to try to reach deals before. The administration's 90 day pause on higher tariffs ends in July. But if it loses that leverage through the courts, the administration does have other ways it could impose tariffs on certain countries, though they may take more time to implement. Besant did say that talks between the US And China are a bit stalled, and he suggested that to get those talks to move forward, President Trump and Chinese President Xi Jinping may need to speak with each other. They haven't spoken since shortly before Trump was inaugurated back in January.

[David Brancaccio]

All right, a bit stalled. Tariff to ING and froing markets S&P and Nasdaq futures are both down a 10th percent. New Federal Reserve data find more parents are struggling financially than just a few years ago. It's part of the Fed's latest Economic well Being of U.S. households survey. Just 65% of parents with kids under 18 say they're, quote, doing okay financially or living comfortably now. That's down 10 percentage points since 2021, a Covid year. Among adults who don't have kids, 76% say they're doing okay financially. Marketplace's Samantha Fields looked into this.

[Samantha Fields]

Life has gotten a lot more expensive since 2021. Michelle Holder at John Jay College at the City University of New York says, everyone's been feeling it, but any sort.

[Kristen Schwab]

Of expense that you encounter for your household just gets bigger when you have children in that household. I mean, you pay more for food, you pay more for clothing. You are likely going to pay at some point for child care.

[Samantha Fields]

The financial struggles many parents face predate the pandemic and inflation, says Suzanne Kahn at the Roosevelt Institute.

[Dana Farber Representative]

They've been building for a really long time because they're rooted in structural issues.

[Samantha Fields]

Namely a lack of affordable childcare and paid family and sick leave. But in the last few years, childcare.

[Dana Farber Representative]

And housing costs are through the roof.

[Samantha Fields]

Childcare costs almost 30% more now than it did pre pandemic.

[Dana Farber Representative]

Families are having to make really hard choices about whether and how much caregivers participate in the paid workforce and how much they are at home. And that's not good for the economy.

[Samantha Fields]

If there are workers who would like to be in the workforce but who have to stay home instead because they can't afford child care. I'm Samantha Fields for Marketplace.

[David Brancaccio]

The Justice Department is making it official moving to end its prosecution of Boeing in a criminal fraud case involving two crashes of 737 Max jets. The required different training to fly. There's a deal in the works for Boeing to pay $1.1 billion in fines and compensation to families of 346 people who died.

[LHH Representative]

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[David Brancaccio]

Into the Universe now to the demographics of summer travel. As we head into June, half of all travelers will be from households making $100,000 a year or more. Now, just two years ago, just over a third of travelers made 100k or more, implying lower income people are traveling much less. This is from a survey from Deloitte Marketplaces. Kristen Schwab has that Even with all.

[Kristen Schwab]

The economic uncertainty, Aiksa Diaz at AAA says Americans are still planning on traveling this summer. Many of them are just doing it a bit differently.

[David Brancaccio]

They're just packing up the car and.

[LHH Representative]

Maybe heading to a beach a couple hours away. Or maybe they're going to the theme.

[David Brancaccio]

Parks and maybe they're staying with family.

[LHH Representative]

And friends to save money along the way.

[Kristen Schwab]

It's worth noting that AAA defines travel as any excursion at least 50 miles from home, which includes shorter trips by car. The shift to local tourism is making the airline industry nervous, says Brian Terry, managing director of global aviation at Deloitte.

[Brian Terry]

Airlines have pared back their capacity for this summer and into the fall, pared.

[Kristen Schwab]

Back on average by about 5%. To make up for the revenue gap, they're focusing on top tier travelers who are more likely to make upgrades and still long haul traveling.

[David Brancaccio]

We are seeing a slight pullback in demand for Europe and a slight increase in demand for the Asia Pacific area.

[Kristen Schwab]

That shift might have something to do with a weaker dollar and the idea that a vacation budget can stretch further in Asia. Meanwhile, Henry Hartevelt, a travel industry analyst at Atmosphere Research Group, says the tourism industry in the US Isn't just worried about Americans vacation plans. Businesses are worried about international travelers.

[David Brancaccio]

There certainly is more hesitancy for a variety of different reasons. Some of it's political, some of it's related to trade.

[Kristen Schwab]

Some of it, he says, is related to how foreigners feel they may be treated in the U.S. harvelt says in general, travel booking numbers can be a sort of proxy for how consumers feel about the economy and where it's heading.

[David Brancaccio]

Generally, most people are making their travel reservations in advance.

[Kristen Schwab]

For summer, it could be two or.

[David Brancaccio]

Even three months or more in advance.

[Kristen Schwab]

It means most people have to feel secure enough with their jobs and savings to book a big trip. I'm Kristen Schwab for Marketplace.

[David Brancaccio]

Our digital producers, Dylan Miettinen. Our engineers are Brian Allison and JCBold. In New York, I'm David Brancaccio. It's Marketplace Morning Report from APM American Public Media. Can we invest our way out of the climate crisis? Five years ago it seemed like Wall street was working on it until a backlash upended everything.

[Dana Farber Representative]

So there's a lot of alignment between the dark money right and the oil industry on this effort.

[David Brancaccio]

I'm Amy Scott, host of How We Survive, a podcast from Marketplace. In this season, we investigate the rise, fall and reincarnation of climate conscious investing. Listen to How We Survive wherever you get your podcasts.