Senator Bernie Sanders (I-VT) and Representative Mark Takano (D-CA) have introduced legislation that would reduce the federal threshold for overtime from 40 hours per week to 32. This mirrors similar efforts in Europe to shorten the work week.
This might strengthen focus on expected revisions of the Department of Labor’s Independent Contractor Rule which would restore the framework from the final rule issued in the first Trump administration. A useful overview of the rule may be found here.
Although overall last week was comparatively to the prior two, as previously noted, last Tuesday the President did announce import bans on a range of Canadian alcohol, dairy and motorcycles. So far, USMCA compliant products not specifically named – including newsprint -- remain duty-free.
Sources reported last week that in advance of the summit on September 24, 2026 between Presidents Trump and Xi, American and Chinese trade officials are currently discussing a framework arrangement for reciprocal tariff reductions of $30 billion with a goal for early implementation.
At Sunday’s trophy ceremony following the Irish Open golf tournament, President Trump surprised many in announcing that he plans to rescind the 10% tariff on Irish whiskey because “[e]verybody’s been bugging me about this one thing . . .” The President said that tournament winner Shane Lowry had spoken to him about it, as well as Irish Prime Minister Micheál Martin. It remains to be seen whether an official action follows.
Several lawsuits seeking to overturn the 10.0 or 12.5% Section 301 tariffs on imports from 86 economies over concerns about forced labor have been filed at the Court of International Trade (CIT), who last week announced its litigation management plan and schedule. The CIT’s order declared that it will first proceed with a representative sample case expected to permit the efficient disposition of this litigation while allowing the court to consider all claims raised by the various plaintiffs. Oral argument in this action currently is scheduled for September 30, 2026.
The rollercoaster ride of economic data continued last week. Following positive reports on manufacturing and productivity the week prior, last Thursday the Labor Department’s producer price index — which captures inflation before it reaches consumers — rose 5.4% in August from a year ago, up from 4.7% in July. Annual wholesale inflation peaked this year at 5.9% in May after energy costs rose due to the war with Iran. On a monthly basis, wholesale prices rose 0.4% from July to August, after a 0.1% increase the month before. On Friday, it was announced that the Consumer Price Index rose at an annual rate of 3.4% in August, in line with July's reading but higher than the 3.3% forecasts. One-third of the monthly increase was attributed to gasoline prices, which are up 27.4% from a year ago, according to the Labor Department.
These numbers all but ensure that the Federal Reserve will hike interest rates this week, with some observers predicting a 50-basis point increase. Such news would not be welcomed by Republicans struggling with low voter confidence in the economy, as post Labor Day many begin to focus on the mid-term elections.
An interesting report discusses how American consumers are responding to new tariff activity and indicates that they continue prioritize value in purchasing decisions as opposed to national pride. When asked what the greatest influence in switching to an American-made alternative, 70% answered price first, followed by 62% responding product quality. Made in the USA was only selected by 23% as one of the most important factors. The same findings resulted from asking about willingness to pay.
Also according to the study, only 16% would pay any premium for a comparable American-made product (with only 5% saying they would pay more than a 10% premium), and over half said the American product would have to cost the same or less.