WSJ What’s News: Episode Summary Title: U.S. Tariffs Stay in Place as Appeals Court Puts On Hold Earlier Ruling
Host: Alex Osola
Release Date: May 29, 2025

1. Appeals Court Decision on Trump's Tariffs

At the heart of today's episode is the significant legal development concerning President Trump's trade tariffs. The U.S. Court of Appeals for the Federal Circuit has temporarily allowed Trump's tariffs to remain in effect while the previous ruling by the Court of International Trade is put on hold pending further legal arguments.

Key Points:

• Temporary Stay: President Trump's tariffs remain in place despite the Court of International Trade's earlier ruling that deemed them beyond the president's authority.
• Administration's Response: The Trump administration is actively seeking a stay on the initial ruling and has indicated intentions to escalate the matter to the Supreme Court if necessary.

Notable Quotes:

• Alex Osola (00:56): "President Trump's tariffs are to stay in place for now."
• White House Press Secretary Caroline Levitt (01:57): "These judges are threatening to undermine the credibility of the United States on the world stage."

2. Impact on Trump's Trade Agenda

Trade and economic policy reporter Gavin Baid provides an in-depth analysis of which tariffs are affected by the court's ruling and the broader implications for Trump's trade strategies.

Key Points:

• Invalidated Tariffs: The reciprocal tariffs promulgated on Liberation Day have been invalidated. Additionally, tariffs related to the fentanyl trade with Canada, Mexico, and China are also affected.
• Unchanged Tariffs: Sector-specific, national security tariffs under Section 232, including those on steel, aluminum, automotive sectors, semiconductors, and lumber, remain unaffected.
• Future Strategies: The Trump administration is exploring alternative legal avenues, such as Section 122 of the Trade Act of 1974 and Section 338 of the Tariff Act of 1930, to impose or maintain tariffs.

Notable Quotes:

• Gavin Baid (02:29): "The first is all of those so-called reciprocal tariffs that he promulgated on so-called Liberation Day, those were invalidated by this ruling."
• Gavin Baid (04:54): "They're actively exploring other options to keep these [tariffs] in place."

3. International Reactions and Negotiations

The ruling has elicited varied responses from global partners, influencing ongoing trade negotiations.

Key Points:

• Canada and China: Both countries have welcomed the court's decision.
• United Kingdom: Adopts a cautious, wait-and-see approach.
• Negotiating Leverage: The Trump administration argues that the ruling diminishes U.S. leverage in trade discussions, though ongoing talks continue with adjustments in messaging.

Notable Quotes:

• Gavin Baid (03:07): "There are the so-called section 232, these are national security tariffs on individual industrial sectors."

4. Legal Analyst's Perspective on Supreme Court Involvement

A legal analyst elaborates on the potential outcomes if the Supreme Court intervenes and the broader interplay between law, politics, and economics.

Key Points:

• Supreme Court's Role: A ruling from the Supreme Court would set a precedent that all lower courts must follow, impacting future trade policies.
• Judicial Trends: Recent Supreme Court decisions have shown a trend of limiting administrative powers, affecting both the Biden and Trump administrations.
• Interconnected Fields: The case exemplifies the intricate ties between law, politics, and economics, with significant implications for global trade policy.

Notable Quotes:

• Legal Analyst (06:32): "Law, politics and economics are all here inextricably tied, and what the courts do is going to affect the way the markets and the way that trade policy is seen around the world."

5. Market Reactions and Economic Indicators

The financial markets have responded to the evolving tariff situation, alongside other economic data releases.

Key Points:

• Stock Market: Initially positive reaction from investors softened by afternoon trading, with major indexes closing marginally higher.
  • Dow Jones: ↑ 0.3%
  • S&P 500 & Nasdaq: ↑ ~0.4%
• Labor Data: A larger-than-expected increase in new unemployment claims, though still within recent ranges.
• Economic Growth: Revised Commerce Department data shows U.S. economic growth at 2.5% in Q1, lower than previously estimated.
• Inflation: The Personal Consumption Expenditures (PCE) Price Index remains elevated at an annual rate of 3.6%, up from 2.4% the previous quarter.

6. Additional News Highlights

Beyond tariffs and trade, the episode covers significant developments in technology and national security.

a. Presidential Meeting with Federal Reserve Chair Key Points:

• Trump vs. Powell: President Trump criticized Fed Chair Jerome Powell for not lowering interest rates.
• Fed's Stance: Jerome Powell emphasized that monetary policy decisions depend on economic data, without committing to specific expectations.

Notable Quotes:

• Alex Osola (09:20): "In a meeting at the White House today, President Trump told Federal Reserve Chair Jerome Powell that he's making a mistake by not lowering interest rates."

b. Sentencing of Tim Leisner Key Points:

• Conviction: Tim Leisner, a former Goldman Sachs banker, was sentenced to two years in prison for his role in embezzling billions from a Malaysian sovereign wealth fund.
• Extradition Efforts: Malaysia is actively seeking Leisner's extradition and has engaged with the U.S. Justice Department.

c. Meta and Anduril's Defense Contract Key Points:

• Collaboration: Meta Platforms is partnering with Anduril Industries to develop advanced headsets for the U.S. Army.
• Technology: The headsets will feature sensors to enhance soldiers' hearing and vision, aiding in drone detection and target identification.
• Market Impact: This move signifies a significant shift for Meta from a social media giant to a player in national security and defense technology.

Notable Quotes:

• Heather Somerville (10:47): "Should Meta with Anduril win this contract to develop virtual reality headsets for the army, it would be the most significant tie-up that Meta will have had with the US military."

7. Conclusion

The episode underscores the dynamic interplay between legal decisions, executive policies, and global economic reactions. As the Trump administration navigates the judicial challenges to its tariff policies, the broader implications for international trade and domestic economic indicators remain pivotal. Additionally, the convergence of technology companies with national defense efforts marks a noteworthy evolution in the tech industry's role in national security.

Produced by: Anthony Banci and Pierre Bienname
Supervising Producer: Michael Kosmides
Host: Alex Osola

This comprehensive summary encapsulates the critical discussions and insights from the WSJ "What’s News" podcast episode, providing readers with a clear understanding of the day's top business and political developments.