7: Trump Tariff Ruling, the De Minimis Exemption, and an Economy Losing Steam

John Diamond breaks down three major developments. First, a federal appeals court has ruled that President Donald Trump unlawfully invoked the International Emergency Economic Powers Act to impose his sweeping tariffs. Second, a new executive order from Trump eliminates the de minimis exemption, which had allowed imports worth $800 or less to enter the country tax-free. Third, new jobs numbers show an increasingly fragile labor market. This conversation was recorded on Sept. 3, 2025.  Clips used in this episode: “BREAKING: U.S. appeals court rules Trump's global tariffs are illegal,” NBC News, August 29, 2025. “‘US will be destroyed if…’” The Economic Times, September 1, 2025. “Trump ends tariff exemption for low-value packages,” CNN, August 29, 2025. “US July Jolts Report: Job openings fall by 176,000,” Bloomberg Television, September 3, 2025. Follow John Diamond on X (@jw_diamond) and LinkedIn. You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.