Got cold feet, literally? You better hurry to the store/More lawsuits filed/Earnings comments

I wasn't being facetious last week when I talked about the possibility of shortages in coming months in the US of products we import from China, or used to import from China. I found this chart in yesterday's WSJ about our 'dependence' on China for socks. The article was titled, "At China's Wholesale Hub, US Orders Have Suddenly Halted. One Example: Socks."

Now I'm not that familiar with the supply chains of Pakistan, El Salvador and Honduras but I'm going to guess that it will take quite some time for them to ramp up enough manufacturing capabilities to fill the gap of China, because it is quite the gap. I'd thus expect some empty store shelves of socks coming our way. Get yours while you can. https://www.wsj.com/business/at-chinas-wholesale-hub-u-s-orders-have-suddenly-halted-one-example-socks-4df97704

I saw another lawsuit filed on Monday against DJT and something we all have to watch out for because an adverse ruling for him would obviously have big implications for the markets and economy. The Liberty Justice Center issued a press release saying they have "filed a lawsuit challenging the Trump Administration's authority to unilaterally issue the 'Liberation Day' tariffs, which are devasting small businesses across the country. The lawsuit argues that the Administration has no authority to issue across-the-board worldwide tariffs without Congressional approval." They are representing 5 owner-operated businesses "who have been severely harmed by the tariffs and highlights the human and economic toll of unchecked executive power."

It mentioned the President's use of the International Emergency Economic Powers Act (IEEPA) to justify the use of tariffs. "But under that law, the President may invoke emergency economic powers only after declaring a national emergency in response to an 'unusual and extraordinary threat' to national security, foreign policy, or the US economy originating outside of the United States. The lawsuit argues that the Administration's justification - a trade deficit in goods - is neither an emergency nor an unusual or extraordinary threat. Trade deficits have existed for decades, and do not constitute a national emergency or threat to security. Moreover, the Administration's imposed tariffs even on countries with which the US do not have a trade deficit, further undermining the administration's justification."

Bottom line according to the Senior Counsel at the Liberty Justice Center, "No one person should have the power to impose taxes that have such vast global economic consequences. The Constitution gives the power to set tax rates - including tariffs - to Congress, not the President." https://libertyjusticecenter.org/pressrelease/liberty-justice-center-files-lawsuit-challenging-executive-authority-to-unilaterally-impose-liberation-day-tariffs/

And I'm now seeing that California is filing its own suit today with a similar claim.

Here was the lay of the global land from Jane Fraser at Citi: