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Tariff Fight Moves to Supreme Court; PepsiCo Keeps Faith in Electric Trucks; Bumper Crops Weigh on Farmers

By Mark R. Long

 

A federal appeals gave President Trump a mid-October deadline to appeal to the Supreme Court before the ruling rejecting tariffs takes effect. PHOTO: NATHAN HOWARD / BLOOMBERG

The battle over President Trump’s sweeping global tariffs will put the Supreme Court directly on the spot over a centerpiece of his economic agenda.

The Wall Street Journal’s Jess Bravin writes that 15 judges across 13 courts 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. The appeals court found that the president had gone too far in his use of emergency powers to rewrite U.S. trade policy.

To date, the administration has sought preliminary relief from the Supreme Court in more than 20 cases in which lower court judges temporarily blocked the White House’s plans. In many of them, the high court gave the administration what it asked for, in orders that provided little—if any—explanation.

  • WSJ VIDEO: Reporter Gavin Bade explains the federal appeals court's ruling and its implications.
  • The new era of tariffs could provide a shot in the arm for some U.S. companies that rely on American manufacturing. (WSJ)
  • Canada’s economy was hit hard by tariffs in the latest quarter. (WSJ)
  • New U.S. tariffs apply to about two-thirds of India’s roughly $90 billion in exports to the U.S., but energy products—which dominate exports from conglomerate Reliance Industries—are exempted. (WSJ).
  • Died, Mark Andol, 59, retailer who sold only 100% made-in-the-U.S. items. (WSJ)
 

PHOTO: JUSTIN LANE / ZUMA PRESS

WSJ VIDEO: Trump's executive order suspending the de minimis exemption from tariffs on all U.S. imports of lower-value packages took effect on Aug. 29. WSJ's Esther Fung explains how this could affect small businesses abroad and raise prices for shoppers in the U.S. 

 
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Transportation

PepsiCo has expanded its fleet of electric Tesla Semi trucks. Photo: Hector Amezcua/Zuma Press

PepsiCo sees a sound business case for zero-emission trucks as the costs and challenges of operating big electric rigs come down, even while lawmakers roll back efforts to push clean fuels.

The soda and food giant’s fleet has more than 1,750 electric vehicles, including more than 100 battery-electric semi-trucks from Daimler Truck North America, Volvo and Tesla. PepsiCo’s director of fleet engineering and sustainability, Adam Buttgenbach, tells the WSJ Logistics Report’s Paul Berger what the company has learned from running the trucks in its operations.

  • PepsiCo is boosting its stake in energy-drink maker Celsius Holdings in a deal worth $585 million. (WSJ)
 

Quotable

"We still see fleet decarbonization and electrification as being a strategic advantage for our organization."

— Adam Buttgenbach, PepsiCo's director of fleet engineering and sustainability
 
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Commodities

Note: All figures are averages; 2025 figures are estimates. Source: Agriculture Department

American farmers are good at producing two crops: corn and soybeans. Too good, in fact. Farmers are expected to harvest some of the largest corn and soybean crops in history in the coming weeks, according to the U.S. Department of Agriculture.

The Journal’s Patrick Thomas writes that this harvest follows several years of bumper crops for farmers, fueling a glut that is driving down commodity prices. Weaker prices are crimping profits and farmers’ ability to stay afloat.

American farmers were encouraged for decades to plant more acres and boost harvests, with an expectation that new export destinations would emerge, industry officials say. Finding partners beyond China has been difficult. Shifting trade policies and tariffs have complicated that equation further, leaving more crops in U.S. grain bins and elevators.

 

Number of the Day

$774.39

Average rate to ship a container, by 20-foot-equivalent unit, from Shanghai to the U.S. West Coast in the week ending Aug. 29, down 3.1%, according to the Shanghai Containerized Freight Index

 

In Other News

The Fed's preferred inflation measure, the personal-consumption expenditures price index, moved no closer to its 2% target in July. (WSJ)

Mortgage rates have edged down, with the average 30-year fixed rate at a 10-month low of 6.56%. (WSJ)

Consumer sentiment declined slightly in August, according to a closely watched index from the University of Michigan. (WSJ)

The Black unemployment rate has risen to 7.2%, the highest level since October 2021, as overall U.S. unemployment rate remains historically low at 4.2%. (WSJ)

China’s manufacturing purchasing managers index rose to 50.5 in August from 49.5 in July, signaling expansion. (WSJ)

Eurozone inflation shows little sign of accelerating, keeping alive the possibility of an ECB rate cut at the next meeting. (WSJ)

The eurozone’s unemployment rate decreased to a record low of 6.2% in July, despite weak economic growth. (WSJ)

South Korea’s export growth slowed to 1.3% in August, missing economists’ projections. (WSJ)

The Bank of Mexico raised its estimates for economic growth this year and next. (WSJ)

India’s economy unexpectedly accelerated in the April-June quarter. (WSJ)

The final days of the $7,500 federal EV tax credit, which expires Sept. 30, have set off a frenzied last-ditch car-buying spree. (WSJ)

The Commerce Department said it would change a licensing system used by Samsung Electronics and SK Hynix to get U.S. equipment for their chip plants in China. (WSJ)

DuPont will sell its Kevlar and Nomex business to Arclin, a TJC-backed firm, for $1.8 billion. (WSJ)

Shrimp sold at Kroger and Walmart has been recalled for potential contamination with the radioactive isotope cesium-137. (WSJ)

Chinese auto giant BYD reported a rise in first-half net profit amid concerns about whether it can meet its full-year sales target. (WSJ)

The U.K. secured a $13.5 billion deal to construct at least five Type 26 frigates for Norway’s navy. (WSJ)

Dubai’s DP World is negotiating to operate a new Montreal container terminal. (Bloomberg)

Wayfair now allows suppliers to fulfill orders for all their customers, not just Wayfair, in an expansion of its CastleGate logistics service. (Supply Chain Dive)

Air-cargo capacity from Vietnam to the U.S. rose 95% in August from a year earlier, data from Rotate show. (Journal of Commerce)

An unsuccessful Houthi missile attack on a chemical tanker off the Saudi coast Sunday marked the Yemeni group’s northernmost strike yet. (Lloyd’s List)

 

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

 
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