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The Federal Circuit Court of Appeals held oral arguments last Thursday in the leading challenge to President Trump’s International Emergency Economic Powers Act tariffs.

The background: In this consolidated case, V.O.S. Selections v. Trump and Oregon v. Trump, the question before the court is whether President Trump’s global reciprocal tariffs and fentanyl tariffs exceed his authority under IEEPA.

• The appeal follows a May decision by the Court of International Trade to enjoin the tariffs after concluding that IEEPA “does not authorize the president to impose unbounded tariffs”—a decision that the Federal Circuit put on ice pending appeal.

The arguments: The Federal Circuit argument focused on the text of IEEPA, which does not expressly mention tariffs and limits the exercise of executive power to address “extraordinary and unusual” threats.

• Although the court appeared split on whether IEEPA allows the president to impose tariffs, most of the 11-judge panel seemed unwilling to accept that IEEPA authorizes the sweeping global tariffs at issue here.

The precedent: The government’s case relied heavily on the closest relevant precedent—the 1975 decision in U.S. v. Yoshida International—which upheld President Nixon’s use of the Trading with the Enemy Act (IEEPA’s predecessor) to place a 10% ad valorem tariff on all imports after the U.S. withdrew from the gold standard.

• The judges accused the administration of “ignoring the parts of Yoshida” it doesn’t like, including the Yoshida court’s express limitations on the president’s tariff authority.
• The court in that case carefully distinguished between a time-limited tariff “as a temporary measure calculated to help meet a particular national emergency, which is quite different from imposing whatever tariff rates he deems desirable.”

What’s next: “Although it is always difficult to predict judicial outcomes, we expect a decision against the Trump administration though not unanimous,” said NAM Vice President and Deputy General Counsel Erica Klenicki.

• “Nearly two dozen amicus briefs were filed in the case, including by members of Congress, legal scholars and think tanks from across the country. Given the high stakes and novel legal questions involved, we fully expect this case to end up before the U.S. Supreme Court next term.”

President Trump issued a new executive order imposing an additional 25% tariff on U.S. imports from India, in response to India’s continued purchase of Russian oil.

The background: In an EO issued March 8, 2022, shortly after Russia invaded Ukraine, the Biden administration prohibited U.S. imports of certain products from Russia, including crude oil, petroleum and related products.

• This new action cites that EO in imposing an additional ad valorem duty on imports from India, “which is directly or indirectly importing Russian Federation oil.”

Tariff stacking: The secondary tariffs are in addition to the 25% modified International Emergency Economic Powers Act reciprocal tariffs on India.

Timing: Secondary tariffs will take effect 21 days after the date of the EO, on Aug. 27.

• The EO includes an “on the water” exception for products loaded and in transit on the final mode of transit prior to that date and that enter the U.S. by Sept. 17.

Other details: The secondary tariff will not apply to goods subject to “existing or future actions under Section 232.”

• It will also not apply if the good is identified in Annex II to EO 14257 of April 2, 2025.

Further action? The EO suggests other countries purchasing Russian oil may become subject to similar secondary tariffs.

• It directs the Department of Commerce to coordinate with other agencies to “determine whether any other country is directly or indirectly importing Russian Federation oil,” and recommend whether to impose an additional 25% tariff on that country. Indirect importation is described as “through intermediaries or third countries.”
• Top importers of Russian oil—which the EO defines as both crude oil and petroleum products extracted, refined or exported from the Russian Federation—include China, Türkiye, Brazil and the European Union.

India responds: The government of India responded  in an official statement: “It is extremely unfortunate that the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”

House Majority Whip Tom Emmer (R-MN) recently toured Niron Magnetics’ headquarters in Minneapolis, Minnesota, where he met with company leaders and employees to discuss the future of domestic manufacturing, alternatives to rare earth magnets (a manufacturing input largely controlled by China) and pro-growth tax policy.

Pioneering technology: Niron Magnetics is developing the world’s only high-performance permanent magnets made entirely without rare earth elements.

• The company’s iron nitride–based magnets are poised to revolutionize industries that depend on magnetic technologies—from electric vehicles and wind turbines to consumer electronics and defense systems—while sharply reducing U.S. dependence on China.
• Founded thanks to a Department of Energy ARPA-E REACT grant in 2011, Niron recently completed a two-year SCALEUP pilot project and is now preparing for commercial expansion.
• “Our goal is to build a fully domestic, globally competitive magnet supply chain that strengthens U.S. energy security, supports national defense and creates [well]-paying jobs,” said Niron Magnetics CEO Jonathan Rowntree. “We’re proud to lead this next chapter in American manufacturing.

The visit: Company officials briefed Whip Emmer on their ongoing collaborations with the Departments of Energy and Defense, emphasizing the national security and energy innovation implications of their work.

• While touring the facility, Whip Emmer engaged with engineers and employees—and even hand-pressed one of Niron’s next-generation magnets.

A big announcement: During the visit, Niron shared plans to break ground on a new 168,000-square-foot manufacturing facility in Sartell, Minnesota, this fall.

• The facility, which will be the world’s first large-scale manufacturer of rare earth–free iron nitride permanent magnets, is expected to create 175 new jobs when it opens in early 2027.

Policy support matters: Whip Emmer, who played a pivotal role in the passage of the One Big Beautiful Bill Act—now signed into law—reiterated his commitment to advancing policies that empower manufacturers to innovate and grow.

• “American manufacturers like Niron are leading the way in rebuilding critical supply chains and securing our industrial future,” Whip Emmer said. “Now that the One Big Beautiful Bill Act is law, we’ve delivered the tools to help U.S. innovators grow, compete with China and protect our national and economic security.”

Securing supply chains: The visit also spotlighted the broader imperative of reducing U.S. reliance on foreign countries—particularly China—for critical minerals. The NAM has consistently advocated federal policies that support domestic sourcing, refining and processing of critical and rare earth materials to ensure secure, resilient supply chains.

• “America’s overdependence on geopolitical rivals for essential materials is one of the greatest threats to our economic and national security,” said NAM Managing Vice President of Policy Charles Crain. “We need strategic investments and permitting reforms that allow companies like Niron to scale breakthrough technologies here at home—and do it quickly.”
• “Meanwhile, outdated and inconsistent permitting delays hamper companies like Niron from bringing transformative technologies to market swiftly and at scale.”
• “Policymakers have an urgent choice to make,” Crain added. “Either we modernize our permitting system and invest in domestic production—or we continue to cede critical supply chains to our competitors. The stakes couldn’t be higher.”

Late last week, Customs and Border Protection issued new guidance on Canada, Brazil and the changes to the International Emergency Economic Powers Act reciprocal tariff rates that take effect on Aug. 7 per the Further Modifying the Reciprocal Tariff Rates Executive Order.

Exemptions: The guidance covers classification of in-transit goods, USMCA-qualifying goods and goods identified as exemptions in Annex II of EO 14257.

Articles subject to Section 232 tariffs: The guidance also includes classification of articles subject to Section 232 tariffs, including iron, steel or aluminum and covered derivatives; passenger vehicles, light trucks and parts; and semifinished copper and intensive copper derivative products.

U.S.-originating content: The guidance also details classification of articles in which at least 20% of the value of the article is U.S. originating. The U.S. content will not be subject to the reciprocal tariff. The reciprocal tariff will be assessed on the non-U.S. content.

Transshipment: The guidance explains the procedure by which CBP will assess an additional ad valorem duty of 40% on goods determined by the agency to have been transshipped.

HTSUS reporting sequence: This guidance details the sequence for entering multiple HTSUS numbers, which may include a Section 301 tariff, an IEEPA tariff and/or a Section 232 or 201 tariff/quota.

Sources: You can find the three guidance documents below:

• Canada rates effective Aug. 1: CBP Guidance on Canada
• Brazil rates and exemptions effective Aug. 7: CBP Guidance on Brazil
• Reciprocal tariff rates effective Aug. 7: CBP Guidance on Reciprocal Tariffs

The Securities and Exchange Commission’s executive compensation reporting requirements are needlessly complex and costly for manufacturers—and reforming them would be a boon to the industry, the NAM told the SEC this week.

What’s going on: The NAM laid out a series of recommendations for making the reporting requirements more workable for publicly traded companies while still providing investors with useful, material information.

• “Neither Main Street investors nor companies are well served by rules that have directed issuers to provide an expanding array of footnoted tables, retain outside consultants to perform ‘compensation actually paid’ calculations that often are confusing to investors, and churn out pay-related disclosures that often exceed 20 or 30 pages,” the NAM told the SEC.
• This week’s suggestions build on ones the NAM made in June.

What should be done: The SEC can benefit both manufacturers and investors by taking several specific steps, the NAM said, including:

• Replacing unduly burdensome mandates with “principles-based disclosure designed for the reasonable investor”;
• Simplifying the 2022 “pay versus performance” rule;
• Giving meaningful disclosure relief to smaller firms;
• Addressing the outsized impact that proxy advisory firms have on compensation decisions;
• Updating perk disclosure rules to reflect changes since 2006, including by ensuring company executives can access needed security protections; and
• Suspending enforcement of the 2022 “clawback” rule until the rule is made less burdensome to companies.

The final word: By making these changes to its executive compensation reporting requirements, the SEC “can ensure manufacturers can recruit and retain leaders that will grow the business, create more jobs and contribute to our overall economic growth,” said NAM Managing Vice President of Policy Charles Crain.

Manufacturers are leading the charge on artificial intelligence—but unlocking its full potential depends on training workers to use AI technologies and expanding the talent pipeline. By embracing AI and equipping people with the right skills, the industry can help fill hundreds of thousands of open jobs, the NAM told Axios in a recent interview (subscription).

What’s going on: NAM President and CEO Jay Timmons and Manufacturing Institute President and Executive Director Carolyn Lee spoke with Axios’ Ben Berkowitz about the current “glittering need” for manufacturing employees and how the sector can attract, train and keep team members. (The MI is the NAM’s 501(c)3 workforce development and education affiliate.)

• “These are high-tech, 21st-century, well-paying, rewarding roles,” Timmons said. “Some require advanced degrees, some a four-year degree and some just a high school diploma.”

Why it’s important: Manufacturing has been averaging about 450,000 open positions every month for the past year, Timmons continued.

• “Looking ahead, if we don’t act now, we’re facing about 2 million unfilled manufacturing jobs by 2033,” he told Berkowitz, citing a recent study by the MI and Deloitte.

What must be done: The answer? Training and partnerships—the right kind, Lee said.

• “Manufacturers … recognize that we need new forms of training and that schools—K–12, higher ed and postsecondary institutions—need to integrate AI into their curriculums. And we are seeing that happen in parts of the country.”
• The MI is working with companies to create programs to train both the current and future generations of workers.
• “The reality is, today’s AI will be surpassed quickly,” Lee continued. “So we need people who are ready now—with skills like prompting, systems thinking and the ability to work alongside AI.”

Misperceptions: Though it pays well and offers exciting, cutting-edge career opportunities, manufacturing still suffers from outdated perceptions among the general populace, according to Timmons and Lee. But that can be fixed, they said.

• The FAME USA apprenticeship-style program, founded by Toyota and now operated by the MI, has chapters in 16 states, Lee told Berkowitz.
• “[W]hen we go out to recruit for these roles, the interest is huge—because students realize they’re learning high-demand, cutting-edge skills in a job with long-term security and strong pay,” she said, adding that a 2020 study found that members of the original FAME class in Kentucky were earning an average salary of $95,000 within five years of completing the program.
• “When Jay and I go out and talk to students—especially during Manufacturing Day events—once they hear the pay potential and understand the work, interest skyrockets.”

Not on the sidelines: When it comes to AI, manufacturers aren’t simply watching events unfold, the NAM and MI told Axios.

• “We’re helping shape the future of AI,” Timmons said. “We’re using [AI] tools to expand capacity, drive investment, create jobs and grow wages right here in the U.S.”

A lookback: According to the latest report from the Manufacturing Leadership Council—the digital transformation division of the NAM—51% of manufacturers stated they already use AI, but 82% cite a lack of AI-ready skills as the top workforce challenge. The NAM recently proposed a series of policy recommendations for policymakers to drive AI development and adoption in manufacturing, which includes a recommendation on developing the manufacturing workforce of the AI age by supporting training programs and career and technical education institutions.

In May, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index recorded a 2.3% annual gain, down slightly from 2.7% in April. The 10-City Composite saw an annual increase of 3.4% in May, down from 4.1% the previous month, while the 20-City Composite rose 2.8% year-over-year, down from 3.4%. Among the 20 cities, New York again posted the highest annual gain at 7.4%, followed by Chicago at 6.1% and Detroit at 4.9%. Tampa again recorded the lowest annual return, with prices falling 2.4%.

On a month-over-month basis, the U.S. National Index as well as the 10-City and 20-City Composites all increased 0.4% before seasonal adjustment. Meanwhile, after seasonal adjustment, the National Index posted a decrease of 0.3%, and the 10-City and 20-City Composites also dropped 0.3%. This marks the third consecutive month of seasonally adjusted declines for the National Composite Index.

Even while most cities registered nominal gains, only four cities—Cleveland, Minneapolis, Charlotte and Tampa—showed month-over-month acceleration. As they have for all of 2025, the Midwest and Northeast continue to lead price growth, while the Western region posted small or negative gains over the month. Cities that saw pandemic highs but now experience persistent weakness include Los Angeles (up 1.1%), San Diego (up 0.4%), Phoenix (up 0.9%) and San Francisco (down 0.6%).

Affordability and inventory are still constrained, and home prices are holding steady—for now. Seasonal momentum is weaker than expected and impacted by higher mortgage rates. The market is recalibrating in response to strained financial conditions, subdued transaction volumes and increasing local dynamics.

Consumer confidence increased 2.0 points in July to 97.2. The Consumer Confidence Index stabilized following June’s decline but remains below the confidence level one year ago. Among its components, the Present Situation Index declined slightly, while the Expectations Index improved, with consumers’ pessimism about the future receding some.

The Present Situation Index, reflecting current business and labor market conditions, fell 1.5 points to 131.5. Meanwhile, the Expectations Index, which reflects consumers’ short-term outlook for income, business and labor market conditions, rose 4.5 points to 74.4, still below the recession signal threshold of 80.

Views of the current labor market situation are still poor, with 30.2% of consumers saying jobs were “plentiful,” up from June (29.4%), while 18.9% said jobs were “hard to get,” up from 17.2% the prior month and from 14.5% in January. Looking to the future, 25.4% anticipate fewer available jobs in the next six months, down slightly from 25.7% the prior month.

Mentions of tariffs were still prevalent in written responses, with consumers expressing fears they will lead to higher prices. Additionally, mentions of high prices and inflation rose in July, despite consumers’ 12-month inflation expectations easing to 5.8% from 5.9% in June and 7.0% in April. Meanwhile, 53% of consumers, compared to 57.1% in June, expect interest rates to rise, and more consumers (21.2% vs. 18.4% in June) expect rates to fall. While mentioned by a few respondents, the positive economic potential of the Big Beautiful Bill remained low on the list of consumers’ written responses in July.

Buying plans for cars and homes declined in July but were stable on a six-month moving average basis. Consumers’ plans for buying big-ticket items were mixed in July, especially for appliances, but plans to buy electronic goods increased slightly. Overall, consumers’ views of their current and future financial situation deteriorated slightly from June but remained solid overall.

In July, Texas factory activity rose markedly following a decline in June. The production index jumped 20 points to 21.3, the highest reading in three years. Meanwhile, other measures were mixed. The new orders index remained negative at -3.6 but advanced nearly four points. On the other hand, capacity utilization and shipments jumped into positive territory, to 17.3 and 2.7, respectively.

Perceptions of manufacturing business conditions improved in July, with the general business conditions index climbing nearly 14 points to 0.9 and the company outlook index leaping nearly 14 points to 4.7, the first positive reading in six months. Meanwhile, the uncertainty index, alternatively, declined four points to 11.2. The series average is 17.2.

Labor market indicators suggested an increase in headcounts and longer workweeks in July, with the employment index rising 2.7 points to 8.4, while the hours worked index climbed back into positive territory to 7.7 from -8.4. More than 17% of firms reported net hiring, while a smaller percentage (9.0%) noted net layoffs.

Historically high upward pressure on prices eased in July, while wage growth remained relatively stable. The prices paid for raw materials index decreased slightly, from 43.0 to 41.7. Meanwhile, the prices received for finished goods index dropped 15 points to 11.1. The wages and benefits index remained largely unchanged at 13.2 and stayed below the series average of 21.1.

The outlook for future manufacturing activity strengthened from June, with the future production index rising from 22.6 to 30.3. Furthermore, the future general business activity index and the future company outlook index both improved, rising to 19.0 and 21.6, respectively.

As anticipated, the Federal Open Market Committee maintained its interest rate target range at 4.25%–4.50% at its July meeting. In a change to its previous statement, the FOMC noted that the growth of economic activity has moderated in the first half of the year. Unlike the June decision, which was unanimous, two FOMC members, Christopher Waller and Michelle Bowman, dissented, desiring to lower the target range by 25 basis points.

In the press conference following the meeting, Federal Reserve Chairman Jerome Powell noted that, despite heightened uncertainty, the economy remains in a solid position and the FOMC is well positioned to respond in a timely way to potential economic developments. Chairman Powell also noted that the underlying composition of price changes has shifted, with increased tariffs pushing up prices in some categories of goods.

The FOMC’s summary of economic projections, which maps out the Federal Reserve’s expectations for where interest rates may be headed in the future, generally is released in conjunction with every other FOMC meeting. Since the June meeting included a release of economic projections, there was not a release in conjunction with the July FOMC meeting. The June summary signaled a marginally more hawkish stance than the March summary. Seven Federal Reserve officials project there will be no rate cuts in 2025, while eight anticipate 50 basis points worth of cuts across 2025. Furthermore, the projections show officials expect inflation and unemployment to rise more than they expected in March.