How to plan buying, selling and shipping after new court ruling on Trump tariffs

Summary

Marketplace Morning Report: Detailed Summary

Episode Title: How to Plan Buying, Selling, and Shipping After New Court Ruling on Trump Tariffs
Release Date: May 29, 2025
Host: David Brancaccio
Duration: Approximately 6 minutes and 40 seconds

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1. Federal Court Ruling Strikes Down Key Trump Tariffs

[00:01] David Brancaccio opens the episode by addressing a pivotal development in U.S. trade policy. A specialized federal court has deemed President Trump's "Liberation Day" tariffs illegal. These tariffs, initially introduced with "fanfare in early April," were implemented using emergency powers, a move the court found beyond the administration's authority.

[00:39] Henry Epp, Marketplace's trade policy expert, elaborates on the specifics of the ruling:

"This ruling blocks many, but not all of the tariffs that Trump has imposed in the last few months. All those country-specific tariffs we've been talking about since early April, those are struck down by this ruling." [00:39]

Epp clarifies that while broad, country-specific tariffs against the European Union, Canada, and Mexico are nullified, targeted tariffs on specific goods such as cars, steel, and aluminum remain unaffected.

2. Implications for Businesses and Importers

David Brancaccio probes the practical consequences of the court's decision:

[01:22] David Brancaccio: "As a practical matter, what does this mean for goods at the border? Do we still pay the tariffs?"

[01:22] Henry Epp responds by highlighting the uncertainty facing importers and businesses:

"At the moment, there is not a clear answer. The administration has 10 days to comply with this order and businesses may be in line for refunds for tariffs they've already paid if the ruling holds." [01:22]

Epp notes that the Trump administration is poised to appeal the decision, potentially escalating the matter to the Supreme Court. Additionally, there are provisions allowing the president to impose a 15% import tax on specific countries with significant trade deficits for up to 150 days. Despite these uncertainties, market reactions have been positive, with stock futures indicating gains.

3. Market Reaction to the Ruling

David Brancaccio provides a snapshot of the market's response:

"Stock futures are trading higher this morning." [02:08]

He cites specific figures:

• S&P Futures: Up 1.2%
• Dow Futures: Up 0.6%
• Nasdaq Futures: Up 1.7%

This uptick reflects investor relief and optimism following the court's decision to block several of Trump's imposed tariffs.

4. Elon Musk’s Controversial Moves and Tesla’s Struggles

The discussion shifts to high-profile corporate news:

[02:26] Brancaccio mentions that Elon Musk is stepping down from his role at the "government cost and personnel cutting group doge." Activist investors within Tesla are pressuring Musk to commit to a more standard workweek in exchange for his compensation package.

[02:47] Sarah Smith from the BBC World Service adds context:

"He said he was really disappointed in it [Trump's spending bill] because there was too much spending. It was going to increase the budget deficit and actually undermine all the work he'd been doing to try and cut government spending." [02:47]

Musk's public criticism of Trump's spending bill has strained his relationship with the former president, adversely affecting his personal brand and Tesla's market performance. Tesla sales in Europe have plummeted by 49% compared to the previous year. Additionally, Musk's endorsement of a right-wing, anti-immigrant party in Germany has alienated European consumers, compounding the company's challenges amid stiff competition from Chinese electric vehicle manufacturers. The interplay between tariffs and Tesla's market position underscores the broader economic tensions stemming from U.S.-China trade relations.

5. Social Security Administration Faces Significant Staff Cuts

Shifting focus to domestic policy, David Brancaccio reports on the Social Security Administration (SSA) undergoing substantial staff reductions as part of the Trump administration's cost-cutting measures.

[03:15] Brancaccio notes that the SSA is reducing its workforce by approximately 12%, equating to one in eight staff members.

[04:09] Nancy Marshall Genzer of Marketplace provides on-the-ground reporting from a SSA office in Schenectady, New York:

"Our wait times have gone from about 30 minutes, 35 minutes to about an hour the last couple of days. I've seen people wait here for two hours." [04:29] – Rennie Glasgow, Claims Technical Expert

Residents are experiencing significant delays and increased foot traffic, especially at the start of each month when individuals verify their Social Security payments and statuses. Immigration-related verifications have also surged.

Customer Experiences:

• Adam Chacko, an engineering professor from Cameroon, reports waiting nearly two hours but remains patient.
• Kristin Hoffman shared her ordeal:

"She came into the office clutching a copy of Pride and Prejudice. Her visit was routine, a monthly check-in required for her Social Security disability benefits. But still she waited an hour and 40 minutes." [05:08]

[05:48] Union representative Rennie Glasgow expresses frustration:

"They tell him, I was waited on the phone for three hours and then I got dropped and I just decided to come in. Now I have to wait here for two hours. This is ridiculous." [05:48]

Customers, particularly those reliant on Social Security services, are increasingly stressed and dissatisfied with the prolonged wait times and reduced staffing.

6. Concluding Insights

David Brancaccio wraps up the discussions by highlighting the multifaceted impacts of the court ruling on Trump's tariffs, Elon Musk's corporate challenges, and the SSA's operational struggles. The episode underscores the interconnectedness of federal policy decisions, corporate actions, and public service efficacy, painting a comprehensive picture of the current economic and political landscape.

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Notable Quotes:

• Henry Epp:

  "All those country-specific tariffs we've been talking about since early April, those are struck down by this ruling." [00:39]

• Rennie Glasgow:

  "They tell him, I was waited on the phone for three hours and then I got dropped and I just decided to come in. Now I have to wait here for two hours. This is ridiculous." [05:48]

• Sarah Smith:

  "He said he was really disappointed in it because there was too much spending. It was going to increase the budget deficit and actually undermine all the work he'd been doing to try and cut government spending." [02:47]

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Conclusion

This episode of Marketplace Morning Report deftly navigates through significant economic and political developments affecting businesses, consumers, and governmental operations. From the annulment of Trump's broad tariffs and its immediate market effects to the localized impact of federal staff cuts on Social Security services, the discussion offers listeners a comprehensive understanding of the current economic climate. Additionally, the segment on Elon Musk illuminates the interplay between corporate leadership and political affiliations, highlighting the broader repercussions on international markets and consumer behavior.

For listeners seeking to stay informed on critical business and economic stories shaping their day, this episode provides timely insights and expert analysis grounded in real-world implications.

Transcript

[David Brancaccio]

Out of plan buying, selling and shipping. Now that a court has ruled President Trump's Liberation Day tariffs are illegal. I'm David Brancaccio in New York. As you've been hearing, a federal court dedicated to matters of trade has struck down President Trump's big package of tariffs, announced with fanfare in early April. The administration used emergency powers for this round of import taxes, something the court says do not apply here. The Trump administration says it is not for unelected judges to decide. For businesses and consumers, the uncertainty continues. Marketplaces. Henry Epp joins me now with what this blocks and doesn't block. Henry?

[Henry Epp]

Yeah, this ruling blocks many, but not all of the tariffs that Trump has imposed in the last few months. All those country specific tariffs we've been talking about since early April, those are struck down by this ruling. So the Liberation Day import taxes Trump listed on a big board and then dropped to 10% and then threatened to raise against the EU last week, that's what the court is blocking. Also the across the board tariffs Trump slapped on Canada and in Mexico earlier in this year, the court said they can't go forward either. But other tariffs on specific goods like cars and steel and aluminum, those are not affected by this ruling. So they stay in place.

[David Brancaccio]

As a practical matter, what does this mean for goods at the border? Do we still pay the tariffs?

[Henry Epp]

Well, so this is the question that importers and businesses are trying to sort out right now. And at the moment, there is not a clear answer. The administration has 10 days to comply with this order and businesses may be in line for refunds for tariffs they've already paid if the ruling holds. But the White House criticized the ruling and plans to appeal, and the case could eventually make it to the Supreme Court. There's also another way for the president to impose tariffs on countries with which the US Has a significant trade deficit. And the ruling mentions this. It allows the president to set 15% import taxes on specific countries for up to 150 days. So we could see the administration try to find other justifications for tariffs. But what's clear right now is markets are happy with the ruling. Stock futures are trading higher this morning.

[David Brancaccio]

All right, they are up, but not wildly. I'm looking at S and p futures up 1.2%. Dow futures up six tenths of 1%. Nasdaq futures, let's see, up 1.7%. Elon Musk is stepping down from his role at the government cost and personnel cutting group doge. Activist investors in his electric car company Tesla are demanding he refocus and work a 40 hour week in return for his pay package. And a federal judge ruled this week that Musk is actually the head of Doge and not just an advisor, which undermines the legal authority of Doge. The North America editor for our partners at the BBC, Sarah Smith, is following this.

[Sarah Smith]

This comes after he very publicly criticized Donald Trump's huge spending bill that's just been passed by the House of Representatives. He said he was really disappointed in it because there was too much spending. It was going to increase the budget deficit and actually undermine all the work he'd been doing to try and cut government spending. And Donald Trump obviously doesn' like that kind of criticism. His time in government has not gone brilliantly for him and it's really hurt his personal brand as well. Tesla cars sales have gone off a cliff.

[David Brancaccio]

Tesla sales fell 49% in Europe compared to a year earlier. Beyond his Trump work, many European car buyers have not liked Musk's endorsement of a right wing anti immigrant party in Germany. Tesla also faces tough competition from electric car companies out of China. In the US High Biden and Trump era tariffs on China's electric cars have limited that competition. The Social Security administration is cutting one in eight of its staff about 12%, one part of the Trump administration's cost cutting drive. This includes people you see when you go into a field office for help. Marketplace's Nancy Marshall Genzer went to one in upstate New York.

[Nancy Marshall Genzer]

The Social Security office in Schenectady, New York lost about a third of its staff last month, according to the local chapter of the American Federation of Government Employees. Its vice president, Rennie Glasgow, is a claims technical expert at the office. He says walk in clients in particular are feeling the effects of the cuts.

[Rennie Glasgow]

Our wait times have gone from about 30 minutes, 35 minutes to about an hour last couple of days. I've seen people wait here for two hours.

[Nancy Marshall Genzer]

Glasgow estimates foot traffic has doubled over the past few months. He says the waiting room is clogged at the beginning of every month with people who've had problems with their check or direct deposit. People come in all the time just to be sure they'll get that month's payment. Immigrants who've become citizens are also coming in to be sure their status is correct in Social Security's database. Adam Chacko is an engineering professor who immigrated from Cameroon. He waited close to two hours, but it's okay.

[David Brancaccio]

I'm on vacation.

[Nancy Marshall Genzer]

Chaco used a vacation day because he knew it might take a while. Kristin Hoffman was also ready to camp out. She came into the office clutching a copy of Pride and Prejudice. Her visit was routine, a monthly check in required for her Social Security disability benefits. But still she waited hour and 40 minutes. Wait times did improve in the afternoon, but union rep Rennie Glasgow says that's because the office manager moved workers from answering phones to helping walk ins, which meant a longer wait for callers. Glasgow says he's seeing more people coming in because they can't get through on the phone.

[Rennie Glasgow]

They tell him, I was waited on the phone for three hours and then I got dropped and I just decided to come in. Now I have to wait here for two hours. This is ridiculous.

[Nancy Marshall Genzer]

Something like that happened to 73 year old Tony Canestracci. He came in to submit paperwork for his wife and he was here last month too.

[Chris Delaney]

The last time I was here was because I could not get through anybody on the phone. That's when I waited 45 minutes and said, the hell with this, I gotta go. I got things to do.

[Nancy Marshall Genzer]

Customers are stressing out, says Chris Delaney, another union official and a claims representative in the Hudson, N.Y. field office. And they're angry before.

[David Brancaccio]

They may feel like slapping you, but now they want to throw your ass off a bridge.

[Nancy Marshall Genzer]

I reached out to Social Security for comment on the situation in Schenectady, but didn't hear back by deadline. In Schenectady, New York, I'm Nancy Marshall Genser for Marketplace, and in New York.

[David Brancaccio]

City, I'm David Brancaccio. You're listening to the Marketplace Morning Report from APM American Public Media.