Big Take (Bloomberg & iHeartPodcasts)

Episode: SCOTUS Strikes Down Trump’s Tariffs
Date: February 20, 2026

Episode Overview

This episode breaks down the Supreme Court’s landmark 6-3 decision declaring many of President Trump’s widely used tariffs illegal—delivering a significant check on presidential power and shifting the landscape for global trade, U.S. business, and consumers. The episode gathers insights from Bloomberg’s Sarah Holder, reporter Greg Storr, and global trade editor Brendan Murray, as they analyze how the ruling impacts American companies, what it means for international trade, the unresolved issue of tariff refunds, and President Trump’s next moves.

Key Discussion Points & Insights

1. Background: The Lawsuit and Supreme Court Ruling

• Rick Waldenberg, CEO of Learning Resources, led a legal challenge against the Trump administration’s tariffs, imposed using the International Emergency Economic Powers Act (IEEPA).
• The Supreme Court ruled that the IEEPA does not give the President authority to impose tariffs during peacetime, reaffirming that such powers belong to Congress.
• Quote:

  "In a 6-3 ruling, the court sided with Rick and his fellow plaintiffs, declaring many of the president's sweeping tariffs illegal."
  – Sarah Holder (02:24)

• The court did not decide whether collected tariffs must be refunded, leaving that to lower courts.

2. Broader Impact on Presidential Power

• The ruling is a "direct rebuke" of President Trump’s attempts to expand executive authority in trade.

• "It reaffirmed that only Congress has the power to impose tariffs during peacetime."
  – Sarah Holder (02:57)

• Even Trump-appointed justices, Neil Gorsuch and Amy Coney Barrett, joined the majority, underscoring the separation of powers.

• "This is a case where Donald Trump just pushed the Supreme Court too far."
  – Greg Storr (19:30)

3. Trump’s Response and Alternative Paths

• Trump held a press conference, vowing to impose new 10% tariffs under a different authority, not impacted by the ruling.

• “We have alternatives, great alternatives. Could be more money. We'll take in more money, but what comes next is less clear.”
  – Rick Waldenberg quoting Trump (03:29)

• Discussion of Section 122: A potential legal route for temporary tariffs (up to 15% for 150 days, requires Congressional extension).

  “There is a playbook for what comes next… [Section 122] only goes up to 15% ... they can try to replicate this tariff wall ... just may be more of a patchwork.”
  – Brendan Murray (09:08)

4. What Happens to the Tariffs Already Collected?

• Massive sums are at stake—Bloomberg Economics estimates $100 billion in IPA tariffs could be eligible for refunds.

• Supreme Court declined to decide on refunds. Lower courts, specifically the Court of International Trade, will address administrative details.

  "That has some questions to it for sure, but everybody who paid one of those tariffs so far can say, I shouldn't have had to pay it. That was illegal, right?"
  – Greg Storr (12:47)

• Complications: Some tariffs were paid nearly a year ago, varying refund situations; companies and suppliers may litigate who’s entitled to the money.

5. Business and Market Reactions

• Markets are waiting for clarity. Some companies may expect refunds, which could boost their finances temporarily but uncertainty abounds.

• “Companies don't like uncertainty. They tend to sit on their hands, not invest, not hire. Consumers tend to sort of rein in their spending. So the markets don't really know what to make of it just yet.”
  – Brendan Murray (10:34)

6. Will Consumers See Lower Prices?

• Don’t expect immediate price drops. Companies may use refunds to make up for lost investments or pass them back up the supply chain.

• The government is not equipped to process such large refunds quickly; the system for tariffs is separate from the IRS’s tax refund machinery.

  "I wouldn't expect this to have any sort of short term impact on the price of consumer items."
  – Brendan Murray (15:16)

7. The Tariffs Landscape: What Changes for Consumers Now?

• With IEEPA tariffs gone, the effective import tariff rate drops from 13–14% to 6–7%, still higher than pre-Trump administration levels (~2–3%).
  • (17:11)
• Not all tariffs are struck down—Trump retains some authorities.

8. Political Implications for President Trump

• Ruling curtails Trump’s signature negotiating tool, but may also offer political advantages if unwinding tariffs improves economic sentiment.

• “Ratcheting back tariffs is such a bad thing for the president politically heading into these midterm elections, dialing them down ... might actually help the economy and might help sentiment…”
  – Brendan Murray (18:38)

9. The Supreme Court and Separation of Powers

• The Court draws a strong line on Congressional authority; even with a conservative majority often favorable to the president, this decision stands out.

  “This is a line the court has drawn with the president ... at least on this sort of unprecedented assertion of presidential authority, the court is saying, no, you can't do that.”
  – Greg Storr (20:24)

Notable Quotes & Memorable Moments

• On knowing they changed history:

  "A lot of times when history is made you don't realize, hey, I just made history. But in this case, from the beginning, we knew we were involved in something that would have a long tail and would affect the trajectory of our country."
  – Rick Waldenberg (02:41)

• On the missing sentence about refunds:

  "Wouldn't you think they would have put one sentence in there saying that keep the money or don't keep the money? Right. I guess it has to get litigated for the next two years."
  – Rick Waldenberg (03:46)

• On the government handling refunds:

  "The US Government sends out millions of tax refunds a year, and no one, when they open the check, goes, oh, my God, how did they do that? ... They know how to do it. It's our money. Give it back."
  – Greg Storr and Shane Simpson (03:58-04:13)

Important Timestamps for Key Segments

• [02:24] – Supreme Court rules Trump’s tariffs illegal
• [03:29] – Trump vows new tariffs via alternate authority
• [06:14] – Explanation of the IEEPA and legal context
• [09:08] – Alternative legal pathways for tariffs (Section 122)
• [10:34] – Market reactions to the ruling
• [12:47] – Next steps for tariff refunds
• [15:16] – Impact on consumer prices and refund logistics
• [17:11] – Effective tariff rate changes for consumers
• [19:30, 20:24] – Political and legal significance of the ruling, separation of powers

Summary Table: What Listeners Need to Know

| Issue Area | Key Points | |--------------------------|-------------------------------------------------------------------------------------------| | Supreme Court Ruling | Struck down Trump’s broad tariffs under IEEPA; reaffirmed Congressional tariff authority | | Refund Question | Billions in tariffs may be refunded; process left to lower courts; messy and unclear | | Consumer Impact | No immediate price drops; import tariff rates fall but stay above pre-Trump levels | | Trump’s Options | New tariffs may come under different laws but are limited in scope and duration | | Markets | Uncertainty prevails; possible boost for businesses expecting refunds | | Political | Loss of a key Trump policy lever; could have positive economic-side effects for Trump | | Judicial Significance| Major assertion of judicial check on unchecked executive power |

Final Takeaway

This case and its aftermath mark a rare assertion of Congressional authority by the Supreme Court, a recalibration of executive power in American trade policy, and a period of legal and market uncertainty as both the administration and companies plot their next moves. The big unresolved issue: whether and how tens of billions in tariff payments will come back to American businesses—and how that ultimately will (or won’t) trickle down to consumers.