An appeals court ruled last Friday that many of President Trump's tariffs are illegal, but declined to immediately block them. Akin Oyedele, deputy editor of newsletters for Business Insider, discusses the market reaction to the decision.

New York

A federal appeals court has determined that a significant portion of tariffs imposed during former President Trump's administration are illegal. Despite this ruling, the court has not immediately halted the tariffs, and the case is expected to advance to the Supreme Court.

The financial markets have responded to the news, with bond yields rising and stock markets, particularly technology stocks, declining. Analysts note that if the Supreme Court upholds the ruling, the U.S. government could lose tariff revenue and potentially be required to repay collected funds, which could further strain the national debt. Additionally, recent data shows a decrease in the U.S. workforce due to lower immigration, raising concerns about future unemployment rates.

Markets react to ruling that most of Trump's tariffs are illegal

fight over President Trump's tariffs will likely make it to the Supreme Court. That's because a federal appeals court ruled many of the levies are illegal. However, the court did not immediately block them. For more on this, let's go to Akin Odele, who joins us. He's a deputy editor of Newsletter at the Business Insider. Akin, so what could the financial impact be here if the United States, in the Supreme Court, if it goes to the Supreme Court and it upholds that decision that's already been made that Trump's tariffs are illegal? Thanks for having me, Jerika. So we're seeing a little bit of a market reaction today with bond yields selling off and the stock market also—sorry, bond yields are rising, which means bonds are selling off, and the market itself is lower, particularly tech stocks. And the worry slash the impact is really twofold. One is that if the Supreme Court upholds this ruling, the government loses the tariff revenue that it's already been collecting. And the second thing is that there's a prospect that the government has to repay back some of the revenue that it's collected. And so both things are not good. They would worsen an already tricky financial situation that the U.S. government is in. We know that the debt is at a historically high level, and losing out on this tariff revenue would put a further dent into that. And so if the ruling is upheld, then those are some of the things that investors worry could happen, and markets are kind of pricing in a little bit of the prospect of that. But obviously, that remains to be seen if it will actually be upheld by the court. I want to talk a little bit more about the economy here. The U.S. workforce lost more than 1.2 million immigrants from January through July, according to a report by the Pew Research Center. So what effect might we see from this in relation to the economy? So what could happen and what's already happening is that the supply, the overall supply of labor to the economy is slowing and is low, essentially. And we're in a pretty unusual situation where employers aren't hiring like they used to. We've only created about 35,000 jobs on average over the last three months, and now we're seeing the supply of labor also slowing. And it's rare to see both things happening at the same time. That hasn't hit the unemployment rate significantly yet, but the worries that it could, and Fed Chair Jerome Powell's most recent remarks at Jackson Hole, he flagged that that's a risk that they're watching closely. We'll get the next jobs report on Friday for July, but the risk is that we could see unemployment take up. And that's because there just aren't enough people to hire. And there also is a slowdown in the demand of workers. Again, that's not happening yet, but that's the risk that the Fed and everyone else should keep an eye on, is the unemployment rate. We absolutely will. Akin Oyedele, thank you so much.

The U.S. military struck a drug-carrying boat hailing from Venezuela, Secretary of State Marco Rubio said, as tensions spike between the Trump administration and the Venezuelan government. Charlie D'Agata has more.

Caracas

U.S. military strikes drug-carrying boat from Venezuela, Rubio says

The House Oversight Committee on Tuesday released over 33,000 pages of documents related to sex offender Jeffrey Epstein.

Washington

33,000 pages of Jeffrey Epstein documents released by House panel

Belgium joins the ranks of Australia, France, Canada and the UK, all who have pledged to recognize a Palestinian state at the UNGA next week in a bid to ramp up pressure on the Israeli government to end the war in Gaza.

Brussels

Middle East Conflict

Belgium to recognize Palestine at the UN General Assembly

A powerful 6.0 magnitude earthquake in eastern Afghanistan killed at least 1,400 people, according to the Afghan Red Crescent Society. Thousands more were  injured.

Kunar

At least 1,400 killed in powerful Afghanistan earthquake

The death toll from Afghanistan's worst earthquake in years jumped to over 1,100 with thousands more injured, as difficult terrain hindered rescue efforts in isolated villages of the country's mountainous eastern region.

Taliban appeals for aid after quake kills over 1100 in Afghanistan

The leaders of Russia, China and India showcased a renewed commitment to co-operation on the second day of the Shanghai Cooperation Organization summit. Analysts says the friendliness is designed to project an unified alternative to the West.

Tianjin

Russia, China, India tout renewed co-operation

A plane carrying European Commission President Ursula von der Leyen was disrupted by jamming that authorities suspect was the result of Russian interference in Bulgaria.

Plovdiv

Von der Leyen's plane affected by alleged Russian GPS jamming

The world's leading genocide scholars' association has passed a resolution saying that the legal criteria have been met to establish Israel is committing genocide in Gaza, its president said on Monday (September 1).

Jerusalem

Israel committing genocide in Gaza, scholars' association says

Chinese President Xi Jinping and Russian President Vladimir Putin outlined a new global security and economic order at a regional summit on Monday (September 1), as India and Russia continued to express strong ties between their nations.

China's Xi, Russia's Putin share vision for new global order

A devastating 6.0 magnitude earthquake struck eastern Afghanistan late Sunday, killing more than 800 people and injuring hundreds more, officials said. CBS News senior foreign correspondent Holly Williams reports.

Kabul

Powerful earthquake in Afghanistan kills hundreds, destroys villages

Iran-backed Houthis raided offices of the United Nations’ food, health and children's agencies in Yemen’s capital, detaining several UN employees, officials said. The rebels tightened security across Sanaa following the Israeli killing of their prime minister and several Cabinet members.

Sana'a

Houthis raid UN offices in Yemen, detain 11 employees

A large buildup of U.S. naval forces in and around the Southern Caribbean has officials in Caracas and experts in the United States asking: is the move aimed at combating drug cartels, as the Trump administration has suggested, or is it for something else entirely?

U.S. builds up forces in Caribbean as officials, experts concerned

Officials from the Trump administration spent the weekend pushing back against a U.S. appeals court ruling that most tariffs against Canada were illegal. Economic adviser Peter Navarro called the decision politically motivated.

Global Tariffs

Trump officials push back after court rules tariffs illegal

Israel's security cabinet is considering a plan to seize Gaza City with attacks ramping up over the weekend. The Israeli military has now ended a temporary pause of military action around aid delivery locations ahead of an expected 'full-scale assault'.

Tel Aviv-Yafo

Israel intensifying attacks ahead of planned seizure of Gaza City

Illinois Gov. JB Pritzker says he's making every effort to stop President Trump from using the military to "invade states." But the White House claims the National Guard is needed to stop violent crime in Chicago.

Chicago

Trump threatens to send military to Chicago over crime

A young boy who had wandered away from his parents ended up on a closed monorail at Hersheypark in Pennsylvania this weekend. A bystander helped rescue the boy as a gathering crowd cheered. It's not clear how he made his way onto the monorail.

Hershey

Boy rescued from monorail track at Pennsylvania amusement park

A flotilla of boats carrying humanitarian aid for Palestinians in Gaza, has set sail from Barcelona. On board are organisers from 44 countries, who say they're trying to break Israel's siege on the Strip.

Barcelona

Greta Thunberg onboard second aid flotilla heading for Gaza Strip

Indian Prime Minister Narendra Modi said New Delhi was committed to improving ties with China in a key meeting with President Xi Jinping, as the two leaders discussed the need to expand trade and investment ties against the backdrop of U.S. tariffs.

Beijing

Modi meets with Xi, vows to improve China ties

Pakistan's eastern Punjab province is facing one of the worst flood emergencies in recent history. Authorities say raging waters have affected the lives of more than 2 million people.

Punjab

Pakistan's Punjab province battered by historic flood

China’s Xi Jinping has welcomed Russia’s Vladimir Putin, India’s Narendra Modi and leaders from around 20 countries to the Shanghai Cooperation Organisation summit, a high-security gathering aimed at boosting Beijing’s influence and promoting "a multipolar world order."

Xi aims to show global south unity with Modi and Putin

Russia's Vladimir Putin is among a dozen leaders attending the regional security summit, which comes at a crunch moment in talks over his war on Ukraine, and for a summit that's demonstrating a strong show of unity among Global South leaders.

Putin arrives in China for key regional security summit

Chicago Mayor Brandon Johnson detailed his plan Saturday to resist President Trump's threatened immigration crackdown in his city. CBS News has learned the Trump administration plans to intensify immigration enforcement in the city as early as next week.

Chicago mayor pushes back on Trump's immigration crackdown

Russian strikes shook the Zaporizhzhia region in southern Ukraine overnight Friday, hitting a five-story apartment building, killing at least one person and injuring dozens more.

Zaporizhzhia

Russia continues assault on Ukrainian cities

For the first time since this week's deadly mass shooting at a Minneapolis church, which killed two young students and wounded more than a dozen people, a devastated community gathered Saturday at the site to attend Mass.

Minneapolis

Mass held at site of Minneapolis church shooting

The United States says it will not allow Palestinian Authority President Mahmoud Abbas to travel to New York next month for a United Nations gathering of world leaders, where several U.S. allies are set to recognise Palestine as a state.

U.S bars Palestinian leadership from attending UN

The Department of Homeland Security is preparing for an immigration crackdown in Chicago as early as next week, sources told CBS News. Illinois Gov. JB Pritzker blasted the Trump administration's plans.

Chicago immigration crackdown could happen next week, sources say

The Israeli military on Friday declared Gaza City a “dangerous combat zone” before a new offensive in the Palestinian enclave's largest city. Israel is moving forward with plans to seize Gaza City despite growing international pressure to end the nearly two-year conflict.

Israel declares Gaza City a 'dangerous combat zone'

Palestinian Authority President Mahmoud Abbas has been blocked from attending the UN General Assembly in New York next month. That's as U.S. Secretary of State Marco Rubio has cancelled visas for the Palestinian delegation.

U.S. blocks Palestinian officials from attending UN general assembly

The death toll of a devastating Russian air assault in Kyiv earlier this week has been revised upward to 25. Now European allies suggest Russian President Vladimir Putin is playing U.S. President Donald Trump if he runs out the clock on Washington's peace efforts.

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