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:

1. “BREAKING: U.S. appeals court rules Trump's global tariffs are illegal,” NBC News, August 29, 2025.


2. “‘US will be destroyed if…’” The Economic Times, September 1, 2025.


3. “Trump ends tariff exemption for low-value packages,” CNN, August 29, 2025.


4. “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.