As fiscal and monetary policy collide, tax professionals are working through uncertainty from all angles. The Fed is signaling rate cuts as early as this month, while Trump’s most sweeping tariffs have just been ruled unlawful by a federal appeals court. Meanwhile, the Treasury has released its list of jobs eligible for the new tip tax exemption—and yes, influencers made the cut. Over in global logistics, China’s shippers are reorienting to avoid upcoming U.S. port fees.
This week’s top stories:
- Fed’s Waller Signals September Rate Cut
- Court Rules Trump Tariffs Illegal—But Keeps Them in Place (For Now)
- Treasury Lists 68 Tip-Based Jobs Eligible for Tax Exemption
- Chinese Shippers Pivot as U.S. Port Fees Loom
- Bankrate Mentions Harness in National Financial Advisor Guide
Let’s read more.
1. Fed’s Waller Signals September Rate Cut
Federal Reserve Governor Christopher Waller has openly backed a 25 basis point rate cut at this month’s FOMC meeting, citing a weakening labor market and stabilizing inflation.
Key takeaways:
- Waller expects “a sequence of cuts” over the next 3–6 months
- He argues against waiting for deterioration: “the time has come to ease”
- Inflation (excluding tariff impacts) is near the Fed’s 2% target
Advisors should prepare for shifting interest rate environments, especially when modeling debt management, client borrowing strategies, and capital allocation.
2. Court Rules Trump’s Broad Tariffs Illegal—But Leaves Them Temporarily Intact
A U.S. appeals court ruled that President Trump exceeded his authority in implementing many of his sweeping global tariffs—but stayed the ruling until October 14, allowing time for a Supreme Court appeal.
Why it matters:
- Ruling challenges use of emergency powers for tariff creation
- Hundreds of billions in revenue could be affected if overturned
- Businesses and trade partners face continued uncertainty
Clients with international exposure or manufacturing dependencies should be advised on potential supply chain disruptions and tariff policy volatility.
3. Treasury Releases List of Jobs Eligible for Tip Tax Exemption
The Treasury has unveiled its initial list of 68 occupations eligible for the “no tax on tips” provision of Trump’s tax law—part of the broader “Big Beautiful Bill.”
Surprising inclusions:
- Influencers, podcasters, digital content creators
- Bartenders, barbers, manicurists, pet sitters, and more
Under the law, up to $25,000 in qualified tips can be deducted annually (2025–2028). However, many low-income earners may not benefit due to already limited tax liability.
Tax professionals should educate clients on proper classification and documentation of tipped income to stay compliant.
4. Chinese Shipping Firms Shift Strategy as U.S. Port Fees Approach
In response to steep new U.S. port fees coming in October, Chinese shipping giants are expanding into regional markets and reducing transpacific exposure.
What’s happening:
- Cosco and OOCL adjusting routes to Africa, Latin America, and intra-Asia
- U.S. tariffs and fees drive structural supply chain shifts
- Partnerships with non-Chinese carriers are being explored
Firms dependent on international logistics may face higher import costs or delays—advisors should account for these risks in business planning conversations.
5. Bankrate Features Harness in National Advisor Guide
Harness was featured in Bankrate’s roundup of trusted resources for finding a financial advisor.
“Harness Wealth helps connect you with financial firms based on your assets and the complexity of your financial situation. According to the company’s website, clients include entrepreneurs, small business owners, angel investors and those living or working in multiple states or countries.”
This recognition reinforces Harness’s role in connecting clients and tax professionals through a digital-first, curated network.
Your Takeaway This Week
From interest rate cuts to illegal-but-still-active tariffs and new tip tax rules, this week illustrates just how entangled tax, trade, and monetary policy have become. Tax professionals are increasingly expected to interpret not just tax code—but the economic and political climate influencing it.
Staying proactive is no longer optional. The clients who win are guided by advisors who can connect the dots.
Want to help your firm deliver more proactive, integrated tax planning?
Talk to Harness today to see how our platform supports modern advisors and their clients.
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Disclaimer:
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Content should not be regarded as a complete analysis of the subjects discussed. Certain information contained herein has been obtained from third party sources and such information has not been independently verified by Harness Wealth. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information. Harness Wealth does not assume any responsibility for the accuracy or completeness of such information. Harness Wealth does not undertake any obligation to update the information contained herein as of any future date.
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