Good morning. The Supreme Court has flirted with a flurry of Trump administration matters in recent months, but the battle over the president’s sweeping global tariffs will put the justices directly on the spot over a centerpiece of his economic agenda.

• Consequential decision: Across three different courts, 15 judges have weighed Trump’s tariff maneuvers—and 11 of them, appointed by presidents of both parties, have found he acted without legal support. The most consequential of those decisions came late Friday from the U.S. Court of Appeals for the Federal Circuit, which rejected the tariffs and gave the president a mid-October deadline to appeal to the Supreme Court before the ruling takes effect.
   
• Blitz: President Trump has been on an all-out blitz to expand executive power, including by declaring a series of emergencies on top of policy priorities that he says allow him to bypass normal procedures and take unilateral action. Citing national security, he upended global markets by declaring a trade emergency to impose 10% baseline tariffs on virtually all countries—and more on some nations. He also claimed an opioid trafficking emergency to direct additional tariffs to Canada, China and Mexico.
   
• Eyes on Scotus: The White House always expected the dispute to be settled at the high court, and it is betting that the court’s conservative majority, one that stands to the right of many lower courts that have ruled against the administration this year, will affirm Trump’s sweeping assertion of his own authority.

Nestlé fires CEO following probe of romantic relationship with subordinate.

Nestlé said it dismissed Chief Executive Laurent Freixe with immediate effect following an investigation into an undisclosed romantic relationship with a direct subordinate that breached the group’s code of conduct.

The Swiss maker of Nescafé coffee and Purina pet food said Monday that its board had ordered the probe overseen by Chairman Paul Bulcke and lead independent director Pablo Isla, with the support of independent outside counsel.

U.S. closes ‘loophole’ for Asian chip makers.

The Trump administration closed what it called an export-control “loophole” that made it easier for two major Asian chip makers to operate in China, Risk Journal reports.

The companies’ involvement in the “validated end-user” program will end in four months, the U.S. Commerce Department’s Bureau of Industry and Security said Friday. The Biden-era program let a handful of companies export U.S.-origin chip manufacturing goods and technology to China without a license, including South Korea-based Samsung Electronics and SK Hynix.

• Intel’s CHIPS Act Requirements Waived After U.S. Government Takes Stake

• California lawmakers took another stab at restricting private-equity investors’ control over medical practices, a year after Gov. Gavin Newsom shot down a similar proposal.
   
• The Trump administration’s tariff policies are creating headaches, uncertainty and extra costs for scores of U.S. companies, from automakers to clothing importers. But for some companies that rely on American manufacturing, this new era of tariffs could give them a shot in the arm.
   
• Companies should step up efforts to comply with U.S. export control laws, even if the much-anticipated 50% rule from U.S. law enforcers doesn’t materialize, experts said.
   
• A group of House lawmakers from across the political spectrum has agreed on a proposal that would ban members of Congress from trading individual stocks, which proponents said marks the first realistic shot at reining in the practice in more than a decade.
   
• Shrimp sold at Kroger and Walmart has been recalled for potential contamination with the radioactive isotope cesium-137.
   
• U.S. Justice Department and Homeland Security officials have formed a new task force to crack down on tariff evasion and other trade fraud.
   
• Failure to prevent fraud is now a crime in the U.K.
   
• The end of the so-called de minimis rule on Friday means tariffs will now be applied to low-value packages shipped from around the world to the U.S., upending international e-commerce and shipping.

Chinese, Russian, Indian leaders pledge cooperation, in a message to Trump.

The leaders of China, Russia and India held hands at a regional summit and promised to cooperate, a display of unity that aimed in part at President Trump—and that underscores the challenges faced by his unorthodox approach to world affairs.

No major decisions were adopted at the Tianjin summit of the Shanghai Cooperation Organization, which was also attended by the leaders of Iran, Pakistan, Turkey, Belarus and Central Asian and Caucasus states.

• While Trump Rattles the World, China Basks in the Limelight

Black Americans are losing jobs in a warning for the economy.

Unemployment in the U.S. remains historically low at 4.2%. Yet Black workers are living in a different reality: Unemployment for Black Americans has surged to 7.2%, the highest level since October 2021, when the job market was still recovering from the pandemic.

The drop in employment is a warning sign for the labor market and threatens to unravel employment gains made by Black workers during and after the pandemic.

• The eurozone’s unemployment rate fell to match a record low in July despite weak economic growth, underpinning expectations that the European Central Bank will leave its key interest rate unchanged next week.
   
• There is a country in the European Union saddled with a massive debt pile, rising borrowing costs and governments that collapse in a matter of months—and it’s not Italy. France, rather, is sliding into a morass.
   
• Russian President Vladimir Putin is expanding his strikes on Ukrainian cities, threatening escalation against Kyiv’s backers and pressing for further military gains in defiance of President Trump’s deadlines to enter serious peace talks.
   
• Canada’s economy was hit hard by the ramp up in tariffs in the latest quarter, when a slump in exports and drop in business investment led to the sharpest contraction in activity since early in the pandemic.
   
• A potential loss of independence at the U.S. Federal Reserve could have serious consequences for both the U.S. and the wider global economy, the eurozone’s top central banker Christine Lagarde warned.

• A federal judge blocked the deportation of Guatemalan children and asked the Trump administration to show the court that the children had been taken off planes.
   
• Need a minute with your boss? Good luck.
   
• Rescue workers struggled to reach villages in mountainous eastern Afghanistan after a 6.0-magnitude earthquake struck near the Pakistan border late Sunday, leaving more than 800 dead and many others buried under debris, according to officials.
   
• The Trump family notched as much as $5 billion in paper wealth on Monday after its flagship crypto venture opened trading of a new digital currency.

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