The US Supreme Court is scheduled to rule on the effects and legality of President Trump's international penalties on trading partners, putting his most expansive tariffs up against a historic test of presidential authority. This year, the high court has had two chances to render a decision, the most recent of which was on Wednesday.
In the event that the court rejects Trump's jurisdiction to impose tariffs, businesses like Costco (COST) are suing the US government in an attempt to obtain a refund of import duties, thus the case is being closely monitored regardless of the outcome.
Early in November, the court heard arguments. The technique by which the president imposed his most expansive duties was questioned with skepticism by both conservative and liberal judges. Trump used a 1977 legislation intended for national emergencies to enforce his tariffs.
Last year, the Trump administration appealed to the court as well. In recent weeks, Trump has often voiced his displeasure with the decision, claiming that the US would suffer a "terrible blow" if it were to lose its authority to impose tariffs on other nations.
He went much farther on Monday. "If the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!" he said to social media.
Taiwan and the United States declared on Thursday that they had signed a trade agreement. According to the US, the agreement would "drive a massive reshoring of America's semiconductor sector." Despite Trump's tariffs, China's trade surplus reached a record $1.2 trillion in 2025. Beijing went on to accuse the US of causing the world's trade imbalances to worsen.
In an effort to stabilize market pricing and promote more domestic mining, Republicans and Democrats have teamed together to introduce a bill that would establish a $2.5 billion reserve of vital minerals, including rare earths.
The bill represents Washington's most recent effort to counteract what they see as China's manipulation of rare earth, nickel, lithium, and other essential mineral prices. It also happens soon after China and the US agreed to a one-year trade truce that included easing export limits on rare earth elements.
For instance, North Carolina-based Albemarle halted plans for U.S. development in 2024 due to an oversupply of lithium produced in China.
In July, despite growing competition from China, the Pentagon became the biggest shareholder in MP Materials, a rare earths company based in Nevada.
According to the 68-page measure, China has taken steps to "weaponize its influence over prices and volumes in the contest for access to critical minerals."
China stated in November that it is dedicated to "upholding the security and stability of global production and supply chains," refuting claims that it manipulates the market for vital minerals.
The bill needs to be approved by the Senate and the House of Representatives and signed into law by President Donald Trump.
The measure would establish a Strategic Resilience Reserve, which would be overseen by a seven person board that would be modeled after the Federal Reserve's governance structure.
Taiwan will increase its investment in the US semiconductor industry, according to a trade agreement agreed by the US and Taiwan on Thursday that will reduce tariffs between the two countries.
Taiwanese semiconductor companies invest $250 billion to increase finance in U.S. operations, according to a US Commerce Department fact sheet.
Additionally, the US stated that the Taiwanese government will "provide credit guarantees of at least $250 billion" to the businesses for further investment. The US "reciprocal" tariff rate on Taiwanese imports will decrease from 20% to 15%, according to the department.
According to US Commerce Department sources acquainted with the specifics, TSMC and other businesses would lead the $250 billion projected investment.
According to the official, Lutnick oversaw negotiations on the agreement, which was centered on semiconductors and the sectoral 232 tariffs.
Lutnick told CNBC that smaller and medium-sized Taiwanese businesses expanding in the US will be the main beneficiaries of the credit guarantees.
He said that the government had been faced with a large tax on its products, which is why they made the concession. "The tariff is probably going to be 100% if they don't build in America," Lutnick stated.
The agreement was made while the Supreme Court continues to consider Trump's most expansive tariffs. Trump's power to impose "reciprocal" tariff rates may be hampered if the high court rules against his levies, but other strategies, such as imposing duties on specific industries, appear to have stronger legal support.
