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Conservative legal group New Civil Liberties Alliance (NCLA) has filed what it says is the first lawsuit seeking to block Donald Trump's new tariffs on imports from China, arguing that the president is overstepping the limits of his authority. The group is representing a Florida-based stationery business called Simplified, which claims it will suffer “severe” harm from his “unconstitutional” tariffs on China. “By invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Trump has misused that power, usurped Congress’s right to control tariffs, and upset the Constitution’s separation of powers", NCLA senior litigation counsel Andrew Morris said in a statement. Trump has declared an emergency over China's alleged complicity in the U.S. opioid epidemic, framing tariffs as a negotiating tool for ending the influx of the drugs. Meanwhile, earlier this morning Beijing announced a 34% tariff on all U.S. imports starting April 10, mirroring the U.S. reciprocal tariff of the same rate. Additionally, China has suspended chicken imports from two U.S. suppliers due to health violations and added 27 firms to its trade sanctions list. 

 

The Hill

Bloomberg

Los Angeles Times

New York Times

Reuters

Kohl's chief technology and digital officer Siobhán Mc Feeney departed the company on Wednesday. The reason for her exit remains undisclosed. Ms Mc Feeney joined Kohl's in 2020 and was promoted to her current role in 2022, overseeing technology and digital platforms. She is the first executive to leave under new chief executive Ashley Buchanan, coinciding with a significant drop in Kohl's stock price, which has fallen nearly 75% over the past year.

 

Milwaukee Journal Sentinel

Diane Lourdes Dick from the University of Iowa discusses the implications of the U.S. Supreme Court's ruling in United States v. Miller, which limits bankruptcy trustees' ability to claw back certain pre-bankruptcy transfers. The 8-1 decision emphasizes that trustees cannot use state fraudulent transfer laws to recover payments made to the IRS if no individual creditor could have made the same claim outside bankruptcy. This ruling may lead to strategic abuses, allowing insiders to shield assets from creditors. Dick notes, "Trustees must act faster. Creditors must be more vigilant." The decision raises concerns about fairness and the treatment of government creditors compared to others, potentially resulting in lower recoveries for unsecured creditors. The case is significant for tax and bankruptcy professionals as it alters the landscape of recovery options.

 

Bloomberg Tax

The U.S. Senate is set to begin a lengthy session focused on passing significant tax cuts and budget reductions, despite strong opposition from Democrats. The Senate narrowly voted 52-48 to initiate debate on a budget blueprint for the upcoming fiscal year, which is crucial for fast-tracking the tax cuts. Senate Majority Leader John Thune (R-SD) managed to keep most Republicans united, with only Senator Rand Paul (R-KY) dissenting. The proposed tax cuts could add approximately $5tn to the national debt over the next decade, which currently exceeds $36.6tn. President Donald Trump is advocating for a comprehensive bill that includes funding for border security and immigration enforcement. Senate Democratic Leader Chuck Schumer (D-NY) criticized the Republican plan, commenting: "Democrats will expose the dark corners of the Republican plan." Concerns about Medicaid cuts and the overall cost of the legislation remain contentious issues among lawmakers.

 

US News and World Report

As automation and artificial intelligence reshape the accounting field, critical thinking remains essential for CPAs. Kelly L. Williams, CPA, Ph.D., and Sandra S. Benson, J.D., emphasize that while AI can enhance efficiency in tasks like fraud detection and data analysis, it cannot replace human judgment. "Critical thinking serves as the basis for a digital mindset," they note, highlighting its importance in navigating complexities. However, overreliance on AI can lead to issues such as misinformation and ethical dilemmas. The authors suggest that accountants should develop critical thinking skills alongside technology use to ensure sound decision-making. They recommend strategies like using technology to streamline processes, solving complex problems, and immersing in real-time scenarios to enhance critical thinking. Ultimately, the integration of critical thinking and technology is vital for accountants to thrive in a rapidly evolving digital landscape.

 

Journal of Accountancy

The Commerce Department reported on Thursday that the U.S. trade deficit in February decreased to $122.7bn, having spiked to a revised $130.7bn in January. Economists had expected the trade deficit to fall to $123.5bn from the $131.4bn originally reported for the previous month. The value of imports was effectively unchanged at $401.1bn, while the value of exports grew 2.9% to $278.5bn, boosted by shipments of nonmonetary gold, capital goods and automotive vehicles, parts, and engines. Additionally, the goods trade deficit fell from $155.8bn to $147bn, while the services trade surplus inched down to $24.3bn, from $25.2bn. 

 

Nasdaq

Reuters

The future of the PCAOB is in question as the Trump administration signals potential deregulation. Paul Atkins' nomination as SEC chair is seen as a move that could reshape the PCAOB's leadership. Lara Long, managing director at Riveron, said: "Republican control of the White House and Congress is a strong sign that regulatory actions will either be reversed or will significantly decline." Recent data from Cornerstone Research indicates a significant increase in PCAOB enforcement actions, with over $86m in penalties issued between 2015 and 2024. However, experts predict that changes in leadership and ongoing legal challenges may hinder future enforcement. "We expect fallout from Jarkesy and similar constitutional challenges . . . to dramatically shift the enforcement landscape moving forward," said Alison Forman of Brattle Group.

 

Accounting Today

U.S. initial jobless claims moved lower last week, according to the Department of Labor, signaling continued labor market stability ahead of potential volatility from import tariffs. Initial claims dropped 6,000 to a seasonally-adjusted 219,000 in the seven days to March 29th, well below the 225,000 forecast by economists in a Reuters poll. The four-week moving average dropped 1,250 to 223,000, while the total number of claimants, reported with a one-week lag, increased by 56,000 to 1.9m. "This adverse trade news from the White House is an extreme external shock to the economy that is in all the university textbooks, and so too is the need for being on high alert for signs of recession," said Christopher Rupkey, chief economist at FWDBONDS. "Weekly job layoffs made by companies are minimal at the moment, but it is too early to forecast what businesses will do in the weeks and months ahead."

 

AP News

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Wall Street Journal

Maersk, the world's second-largest container shipping firm, has said that tariffs announced by U.S. President Donald Trump are bad for the global economy and trade stability. "The tariff plan announced by the U.S. administration was significant, and in its current form, it clearly isn't good news for (the) global economy, stability and trade," Maersk said in a written statement. "It is still too early to say with any confidence how this will ultimately unfold," the company added.

 

U.S. News

In October, the Kachin Independence Army (KIA) armed rebel group seized control of northern Myanmar's rare earths mining belt. The KIA is fighting for the autonomy of the Kachin minority, a mostly Christian group which has long held grievances against the Bamar Buddhist majority. Its actions have disrupted the production of heavy rare earths, which are essential for wind turbines and electric vehicles, and led to a spike in prices. "They want to use rare earth reserves as a leverage in their negotiation with China," said Dan Seng Lawn, executive director of the non-profit Kachinland Research Centre, which studies Kachin socio-political issues. The group has imposed a hefty tax on the mostly Chinese-operated rare-earth miners working around Panwa and Chipwe towns in Kachin, he said.

 

U.S. News

Amazon has told the White House it is interested in buying TikTok ahead of the April 5th deadline by which its parent company, China-based ByteDance, must either sell the company or face a ban in the U.S. The retail group made the offer in a letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick, according to people familiar with the matter. "While Amazon is the No. 1 destination for searching for products, it remains a channel that is most suited to planned and specific purchases", commented GlobalData managing director Neil Saunders. "It has certainly made some inroads into becoming a place for consumer entertainment and discovery, which led to impulse purchases, but this is very much the preserve of TikTok and TikTok Shop. This more impulse driven part of the market is faster growing that more established e-commerce channels". Other parties in contention for the company include a new entity backed by BlackRock and Oracle, to lease TikTok's algorithm from ByteDance.

 

CBS News

The acting chief of the Equal Opportunity Employment Commission (EEOC) is prioritizing President Donald Trump's campaign against diversity, equity, and inclusion (DEI) programs. Andrea Lucas has received support from the Trump administration, which has issued executive orders targeting DEI initiatives. Critics, including former Democratic EEOC officials and civil rights groups, argue that Lucas is overstepping her authority and misleading employers about the legality of DEI practices. They have urged employers to be wary of her directives and guidance. The EEOC's recent "technical assistance" documents warn that certain DEI practices may violate Title VII of the Civil Rights Act. “Far too many employers defend certain types of race or sex preferences as good, provided they are motivated by business interests in ‘diversity, equity, or inclusion.',” Lucas said in a statement announcing the new technical assistance on DEI.

 

Los Angeles Times

North Korean IT workers are increasingly masquerading as remote freelancers to infiltrate European companies, posing significant risks of espionage and data theft. According to research by the Google Threat Intelligence Group, these so-called "warriors" have shifted their focus from the US to countries like Germany, the UK, and Portugal following an increased awareness of the threat, along with sanctions and indictments from the US Department of Justice. They falsely claim to be from various countries to secure jobs on platforms such as Upwork and Freelancer, often receiving payments in cryptocurrency. Dr Jamie Collier, lead adviser for Europe at Google, noted that the pressure from the US is driving these workers to adopt "more aggressive measures to maintain their revenue stream." The FBI has warned businesses to enhance their identity verification processes to combat the growing threat.

 

Straits Times