Business
What the Supreme Court’s decision to strike down tariffs means for L.A.’s trade-dependent economy
The Supreme Court’s decision Friday to strike down the majority of tariffs imposed by President Trump could provide some relief to L.A.’s trade-reliant economy — but only if they are not reimposed again through other means.
The court’s 6-3 ruling that Trump didn’t have the authority to impose tariffs under the International Emergency Economic Powers Act rolled back levies that have upended international trade.
“We’ve seen that the tariffs have a significant impact on our supply chain, on our manufacturers and especially on our port logistics and trade sector,” said Stephen Cheung, chief executive of the nonprofit Los Angeles County Economic Development Corp.
“I think this decision will have a significant impact on the Los Angeles economy. However, it’s going to take a long time to unravel, so we’ll see specifically how everything is going to pan out,” he said.
The tariffs dealt a blow to a large swath of businesses in Southern California and across the state, including farmers, automakers, home builders, tech companies and apparel retailers.
MGA Entertainment, the Chatsworth maker of Bratz dolls, said a little more than half of its products are made in China, while hardware and lumber seller Anawalt in Malibu said the majority of its lumber comes from Canada and nearly all of its steel products are made in China.
During a news conference Friday following the decision, Trump said that under other legal authorities he would impose a 10% global tariff and pursue additional levies, including a possible 30% tariff on foreign cars. Later in the day he signed an order imposing the 10% tax, which takes effect Feb. 24.
“The Supreme Court’s ruling on tariffs is deeply disappointing, and I’m ashamed of certain members of the court — absolutely ashamed,” Trump said. “They’re very unpatriotic and disloyal to our Constitution.”
Friday’s high-court decision affects up to $170 billion in tariffs collected under the International Emergency Economic Powers Act of 1977, including 10% to 50% duties and penalties on China, Canada and Mexico.
Whether importers who paid the tax can seek refunds was left to a lower court to decide. It’s estimated some $100 billion in tariffs were not affected by the decision.
The ports of Los Angeles and Long Beach — which handle nearly a third of the nation’s containerized cargo and are the primary trade gateway to Asia — saw a surge of traffic the first half of last year as importers sought to get ahead of the tariffs, largely imposed in April.
However, traffic tailed off the second half of the year, with the L.A. port expecting a single-digit decline in volume this year before Friday’s decision.
The twin facilities form the largest ports complex in North America, supporting more than 200,000 jobs and contributing $28 billion to the regional economy in 2022, according to a California Center for Jobs & the Economy report.
The uncertainty surrounding the tariffs derives from the complexity of the tariffs themselves — as well as the other legal options Trump has to impose them again.
Mike Jacob, president of the Pacific Merchant Shipping Assn., which represents ocean carriers, marine terminal operators and others in the industry, said the tendency is to think of the tariffs as uniform.
“It was different rates for different countries. That was compounded by different rates for different commodities. And there’s a lot of changes that have occurred with specific commodities,” he said. “So it’s almost impossible to take a broad brush and say, here’s what we expect to happen — except to say that it’s still a pretty unsettled space.”
In imposing a 10% global tariff, Trump would be relying on a provision of the Trade Act of 1974, while his ability to pursue additional levies would rely on other law.
Economist Jock O’Connell, international trade advisor at L.A.’s Beacon Economics, said that Trump may have authority to impose the 10% global tariffs, but additional levies would involve trade authorities.
“That would be a cumbersome process. The tariffs have to be more specifically framed and the subject of an investigation,” he said.
Also complicating the process are trade deals the U.S. has been negotiating with foreign countries based on the tariffs. O’Connell expects they will seek to renegotiate them.
“They’re likely to come back to the table and say, ‘Well, you don’t have the authority to impose these,’” he said.
Gene Seroka, executive director of the Port of Los Angeles, said importers are facing tough decisions right now, given that any ocean carrier leaving an Asian port today would not be subject to the tariffs that were struck down.
“That executive is asking: ‘Are my commodities now exempt from this tariff?’ If the answer is yes, ‘Can I buy more of that product and get it shipped while there are no tariffs?’” he said.
Those decisions would revolve around such factors as the availability of space on the vessel and local warehouses, as well as trucking services, he said.
Mark Zandi, chief economist at Moody’s Analytics, said the decision should be good news for the larger U.S. economy and businesses on the “front line” of the trade wars, such as transportation, distribution, agriculture and retail.
“If the president lets the Supreme Court decision stand and doesn’t try to replace the tariffs, that’s a plus for the economy — but that’s not what’s going to happen,” he said.
Business
Video: Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Microsoft
new video loaded: Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Microsoft
transcript
transcript
Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Microsoft
Elon Musk had accused OpenAI of “stealing a charity” by attaching a commercial company to Open AI, which was founded as a nonprofit. But a jury ruled that the statute of limitations had expired.
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“The evidence that Mr. Musk’s lawsuit was an after-the-fact contrivance by a competitor was overwhelming.” “This reminds me of key moments in this country’s history. The siege of Charleston, the Battle of Bunker Hill, these were major losses for Americans. But who won the war? And this one is not over. And to sum it up, I can sum it up in one word: appeal.”
By Meg Felling
May 18, 2026
Business
Five Guys to close two L.A.-area locations
Five Guys will close two Los Angeles-area locations later this month.
The burger chain announced in a recent state filing that its locations in City of Industry and Whittier will close in late May. An outlet in Merced will also close its doors in late June, and one in Hanford will shut down in early July, according to state court filings.
The burger giant is the latest fast-food chain to shutter locations as the industry struggles with rising labor and real estate costs in the state.
The company cited “financial hardship” as a reason for the closures, according to a filing.
Employers are legally required to submit a Worker Adjustment and Retraining Notification, or WARN notice, to alert employers, state and local officials at least 60 days before major layoffs. The initial notices were submitted in late April and early May.
The chain had steady growth in 2024, but seems to have stumbled in California. It opened 37 new storefronts that year, according to the company’s franchise disclosure document. Yet California stores accounted for eight of the 14 locations that closed that year.
The closures will result in 55 jobs lost across the four locations, according to the WARN notice.
A spokesperson for Five Guys did not immediately respond to a request for comment.
Fast food chains have struggled against rising operational costs and increasingly cost-conscious customers.
California’s economic landscape has further complicated business in the state. While aerospace and defense companies have continued to flock to the state, companies in other sectors, including food, have started to bail out.
Five Guys ranked 42 in QSR Magazine’s top 50 U.S. restaurants list for 2026 and the number of locations in the country rose by 2% in 2025.
The chain got its start around 40 years ago in Virginia and now operates over 1,900 locations, according to its website.
The restaurant’s website lists over 85 locations in California, including at least 15 storefronts in the Los Angeles area.
Business
Jury rejects Elon Musk’s lawsuit, sides with OpenAI in bitter feud over AI future
A federal jury sided with OpenAI and its top executives on Monday in a feud with Elon Musk, who accused them of betraying a shared vision for it to guide artificial intelligence’s development as a nonprofit.
The nine-person jury unanimously found that Musk waited too long to file his lawsuit and missed the deadline for the statute of limitations.
Musk, the world’s richest man, was a co-founder of OpenAI, the company that launched in 2015 and went on to create ChatGPT. After investing $38 million in its first years, Musk accused OpenAI CEO Sam Altman and his top deputy of shifting into a moneymaking mode behind his back.
The jury served in an advisory role, but Judge Yvonne Gonzalez Rogers accepted the verdict Monday as the court’s own and dismissed Musk’s claims.
The trial that began on April 27 in Oakland shed light on the bitter falling-out between the two Silicon Valley titans and the origins of OpenAI, now a company valued at $852 billion and poised to become one of the largest initial public offerings in history.
The high-profile high-stakes showdown between two of the most powerful companies and leaders in technology was billed as a battle that could change the trajectory of AI.
There were two weeks of testimony from the dueling entrepreneurs and other key players in OpenAI’s history, providing a rare inside glimpse into the company, which evolved from a startup to one of the world’s most influential companies.
Musk had fallen out with his fellow co-founders, then, after OpenAI became arguably the most important company in AI, he decided he was not happy with how the trailblazer was managed after he left.
Musk claimed Altman, the startup’s chief executive officer, and OpenAI President Greg Brockman “stole a charity” by exploiting his early support for an altruistic research project so that they could later get rich by turning into a regular for-profit company.
OpenAI and its leaders said Musk was suing them to gain a competitive advantage for his own startup, xAI.
Musk was seeking more than $100 billion in damages — to be awarded to OpenAI’s nonprofit arm instead of to himself — as well as the removal of Altman and Brockman.
The case was seen as an existential threat to OpenAI. If the decision had gone the other way, it would have sparked a shakeup that would have destabilized the company just as it is working to ensure the U.S. takes the lead in AI and prepares for a public offering with a valuation approaching $1 trillion.
Associated Press and Bloomberg contributed to this article.
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