Good morning. Today marks the fourth anniversary of Russia’s invasion of Ukraine. The State of the Union is tonight, and President Trump warned that it’s going to be a long one. Mexico is emerging from a storm of violence that followed the death of a cartel leader. And I, like millions of others across the Northeast, need to dig my vehicle out of the snow. More news follows. But first, let’s answer some of your questions about Trump’s tariffs.
Your tariff questionsWe knew that you would have questions about Friday’s Supreme Court decision invalidating President Trump’s tariff regime. He has already invoked a new law — the Trade Act of 1974 — to impose a flat 15 percent tariff on imports, but that expires in five months unless Congress extends it. Now he is exploring provisions that target unfair trading practices and national security threats. But what happens to the companies that paid steep levies? What will Trump do next? Should you pay your personal tariff bill? We brought your questions to expert Times reporters. Economic effectsPlease tell us how this ruling will affect average Americans. What price changes are we likely to see? How soon? | Renée Pesheck, Ann Arbor, Michigan Lydia DePillis, who covers the economy, writes: Probably not much. Companies would rather not lower prices once consumers have gotten used to them. Plus, Trump has already imposed those 15 percent tariffs across the board. Economists estimate the average effective tariff rate will go down by only about one percentage point. Still, you might see some relief on items that come from countries that had the highest tariffs, like India and Brazil — certain spices and nuts, for example. Are any impacts of Trump’s tariffs permanent or irreversible? | Arielle Zabusky, Durham, North Carolina Ben Casselman, The Times’s chief economics correspondent, writes: Almost certainly, but it’s hard to know exactly what those impacts are just yet. Many companies have changed their supply chains and shifted production to different countries. Those shifts will be difficult to reverse. For the economy more broadly, trade flows will eventually adapt to whatever tariff regime takes hold. But both major political parties have turned their back on the free-trade orthodoxy that was dominant in earlier decades, and corporations are adjusting their business models to reflect that reality. What is the money raised by the tariffs earmarked for? Who has oversight on how it is spent? | Samantha Dennis, Bethlehem, Pennsylvania Andrew Duehren, who covers taxes, writes: It’s not earmarked for anything in particular. Like other tax revenue, money raised from tariffs is deposited in the Treasury General Account — basically the checking account for the federal government. So, despite the way Trump has sometimes talked about the tariff revenue, it’s not a special pot of money that the administration can deploy however it sees fit. Congress decides and oversees federal spending. RefundsMany businesses now say the government should refund the levies they paid. Who has the ultimate authority to determine if, how and when companies would get refunds? | John Royse, Bridgman, Michigan Ana Swanson, who covers trade, writes: The Supreme Court left this issue to lower courts and the U.S. Court of International Trade, a separate federal court that deals with customs issues. It’s unclear whether they will order refunds, what the process would look like or how long it would take to play out. If refunds happen, Customs and Border Protection and the Treasury Department will need to set up a system to refund money, and it could take months or even years to get money back. (FedEx filed a lawsuit yesterday demanding refunds; many more companies are expected to follow.)
Since consumers have been paying more — to offset the tariffs companies faced — shouldn’t we get the refunds? | Angelyn Remmert, Loveland, Colorado Tara Siegel Bernard, who covers personal finance, writes: A majority of Americans disapprove of Trump’s tariffs, and some Democratic lawmakers, including Gov. JB Pritzker of Illinois, have already begun to demand refunds for their constituents. In a letter, Pritzker recently requested a refund of $1,700 for every household in Illinois — a total of nearly $8.7 billion. But importers actually paid the tariffs — and they are the only ones directly eligible for refunds. It’s unlikely consumers will receive any direct relief. Is there any chance that the de minimis exemption — the rule, ended by Trump, that says imports worth under $800 face no duties — will be restored? | Alex Norman, Seattle, Washington Ana Swanson, who covers trade, writes: That seems unlikely. The Trump administration ended de minimis when he invoked the emergency law. But the Supreme Court didn’t clearly weigh in on de minimis, and last week the White House put out a new executive order saying the exemption is still eliminated. Customs laws appear to defer to the executive branch about whether to have de minimis in the first place. There is a proposal in Congress to restore fast-track treatment for some goods, but the measure has many opponents. CopingI have put off ordering goods from abroad due to the uncertainty about whether it would induce a tariff when it arrives in the United States. Is there a master list of which countries have which tariffs? | Emily Weir, Northampton, Massachusetts Lazaro Gamio, a graphics editor, writes: Yes! Our coverage helps you see how the new tariff compares with the previous rate of each country. It also shows which emergency tariffs were invalidated by the Supreme Court, how trade rules evolved and what industries face specific duties. Hope this helps:
How are foreign countries reacting to the U.S. Supreme Court ruling on tariffs? | Dorothy Gray, Kenai, Alaska Patricia Cohen, who covers the global economy from London, writes: Foreign governments and businesses are confused by what the ruling will ultimately mean for them — after the president’s current 15 percent across-the-board tariff expires in July. Some countries like Britain and Australia, which negotiated lower rates, are worse off than they were before the ruling. Some that struck side deals to get lower rates, like Japan and Indonesia, are stuck with those other arrangements. And others that faced higher levies, including China and India, are better off now. But everybody is pretty much in a wait-and-see mode. Yesterday, E.U. officials paused the implementation of their trade deal with the United States. I ordered a $90 bowl from Finland off eBay and later received a letter stating that I owed $20 in tariffs. I haven’t paid it. Do I have to? | Rebekah Raleigh, Chicago, Illinois Peter Eavis, who covers supply chains, writes: Yes, you’ll most likely have to pay a tariff. If you received the bowl or it was already processed by Customs and Border Protection before Feb. 24, you will owe the tariffs that the Supreme Court just ruled against. After that, you’ll have to pay the new tariff. Related: Late night hosts summed up Trump’s tariff tiff with the Supreme Court.
Violence raged across Mexico after its military killed a powerful cartel boss, Nemesio Oseguera Cervantes, known as El Mencho. His supporters wreaked havoc in at least a dozen states, blocking roads and setting fire to supermarkets, banks and vehicles. At least 62 people were killed in the fighting. Who was El Mencho? He was the head of the Jalisco New Generation Cartel. The criminal organization expanded rapidly under his leadership, producing and selling drugs, extorting local businesses and terrorizing communities.
What does his nickname mean? According to our colleagues in Mexico City, El Mencho doesn’t have any special meaning. It’s just a common nickname for the name Nemesio. The operation: Mexican special forces stormed a secluded cabin in Jalisco state, the cartel’s stronghold, and encountered gunfire from El Mencho’s heavily armed security team. The authorities tracked the drug lord and his inner circle to a wooded area, where they wounded him and two bodyguards in a shootout. All three died in transit to a medical center, officials said.
Watching his lover: The operation began when Mexican intelligence officials tracked a man traveling with one of El Mencho’s romantic partners to the cabin on Friday. Intelligence provided by the U.S. helped pinpoint his location, an official said. Caught in the middle: The counterattacks brought chaos to Puerto Vallarta, a popular tourist destination that was choked with smoke from burning vehicles for much of Sunday. By Monday morning, though, people in the city said the fighting appeared to have stopped. Travel disruptions: The violence stranded travelers and forced many international airlines to cancel flights. The U.S. State Department last night advised U.S. citizens across Mexico that they should shelter in place. Read what to know about travel to Mexico.
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Choco-not: Hershey’s replaced the milk chocolate in some of its Reese’s peanut butter snacks with chocolate flavoring. Mr. Reese said he was “embarrassed.” American Girl: The company redesigned a line of dolls from its historical collection. The backlash on social media was swift. An Instagram post unveiling the series led to an abundance of Ozempic jokes. |
