Yesterday, the US Supreme Court heard arguments to decide whether US President Donald Trump overstepped his constitutional authority by imposing tariffs on other countries. President Trump used emergency powers under the International Emergency Economic Powers Act to impose tariffs on much of the world, which has significantly disrupted global trade flows. A President’s ability to impose tariffs has been questioned, prompting it to be referred to the Supreme Court.

• The Supreme Court listened to arguments about whether President Trump exceeded his authority by imposing tariffs. A win for President Trump would allow tariffs to remain in place. Conversely, a loss would eliminate the President’s preferred tool in his stated efforts to bring manufacturing, jobs and investment into the US, and lower the trade deficit. A final ruling is not expected for weeks or even months.
• S&P Global reported business activity in the US expanded at a faster pace in October compared to September. Manufacturing and services sector activity accelerated over the month, driven by stronger new orders and output.
• The US labour market continues to show signs of weakness. ADP reported that private businesses in the US added 42,000 in October. Job growth at private businesses has slowed in 2025.
• In Canada, business activity expanded for the first time since November 2024. Business activity benefited from a stronger services sector, while the manufacturing sector contracted again, still hindered by trade disruptions with the US.

Tariffs have now headed to the Supreme Court. The decision, which is still some time away, may have significant implications for the US and global economies. But that decision may not be forthcoming for some time still. In Canada, the federal budget aims to support the country’s economy during this uncertain time and prepare it for the future, with a focus on diversifying trade to reduce reliance on any single country.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.