Bloomberg Businessweek Podcast Summary

Episode: Instant Reaction: Trump's Global Tariffs Struck Down By Supreme Court
Date: February 20, 2026
Hosts: Scarlet Fu, Paul Sweeney
Guests: Tyler Kendall (Bloomberg News, White House Correspondent), June Grasso (Bloomberg Law Host), Henrietta Trays (Vetta Partners), Dave Townsend (Dorsey & Whitney, Trade Attorney)

Main Theme

A breaking, in-depth analysis of the US Supreme Court’s historic 6-3 ruling striking down President Donald Trump's sweeping global tariffs. The conversation contextualizes the legal reasoning, market reactions, broader implications for presidential powers, complexity around tariff refunds, and what options remain for trade policy going forward.

Key Discussion Points & Insights

1. Supreme Court Ruling: Immediate Details

• Decision: In a 6-3 vote, the Supreme Court struck down Trump's tariffs implemented under the International Emergency Economic Powers Act (IEEPA).

• Reasoning: The court found the President lacked authority under IEEPA to impose broad tariffs—traditionally a Congressional power.

  • “The court, in a 6-3 decision, struck down President Trump's tariffs…we’re still going through this, cases coming in real time…”
    —Tyler Kendall, 02:37

• Two main questions considered:

  1. Whether IEEPA grants the President tariff-imposing authority (it typically allows for sanctions).
  2. Whether the “national emergencies” cited (fentanyl, trade imbalances) justified such action.

• Key Dissent: Justice Brett Kavanaugh noted the practical difficulties:

  • “The court says nothing today about whether and if so, how the government should go about returning the billions of dollars that it has collected from importers. But that process to be a mess, as was acknowledged at oral argument.” (Tyler relaying Kavanaugh’s point, 03:35)

2. Refunds and Trade Litigation Complexities

• Supreme Court did not address eligibility for tariff refunds—hundreds of lawsuits are pending for importers seeking money back.

  • "Every company that wants a refund would need a distinct claim in court. Perhaps we'll likely see a class action lawsuit that could maybe put this a little bit more broad based." —Tyler Kendall, 05:27
  • Over 300,000 importers affected, over $134 billion collected in tariffs (05:27).

• Challenges:

  • Refunds will likely be dealt with by the lower Court of International Trade.
  • Statute of limitations ("liquidation process"): Companies have 314 days to make refund claims; some tariffs exceeded this window (05:27).

3. Market Reactions

• Equities: S&P 500 up ~0.33%. Retail/consumer durable stocks surged (Lululemon up ~5% at open, holding 2.4%)—companies previously hurt by tariffs saw biggest gains (04:28).
• Bonds/Yields: Treasury yields rose—removal of tariff revenue creates a budget shortfall, potentially requiring more debt issuance (06:46).
• European Equities: LVMH up 4.4%—European exporters benefit too.

4. Administration's Remaining Tools & Policy Implications

• Trump administration has other authorities (Section 232: national security, Section 301: unfair practices, Section 201: domestic industry injury, Section 122 for 15% short-term tariffs, Section 338) but:

  • These authorities are narrower, have lower rate ceilings, require procedural delays, and less flexibility than IEEPA.

  • Example: Section 232 investigations take ~9 months (08:57).

    • "The Trump administration likes IEEPA because that's a lot more flexible…A lot of these tariffs have limits, have to go away after a certain amount of time...have a 15% ceiling, for example, whereas we know the President in some cases has threatened tariffs, you know, 50% and onwards." —Tyler Kendall, 07:28

• White House, per Henrietta Trays, will face difficulty reinstating tariffs at the same scale or speed (21:10).

5. Legal and Constitutional Impact

• Reaffirms Congressional power over taxation and trade.

  • "This is just a tremendous day, a huge win for the Constitution…in my opinion the largest and most impactful macroeconomic ruling the courts have ever delivered." —Henrietta Trays, 16:48

• Historical context: Largest tariff rollback since the 1930 Smoot-Hawley Act; compared to the landmark Youngstown steel case (1952) and FDR's New Deal battles (15:04).

• Preserves Supreme Court's integrity (avoiding political capture narrative).

  • “It’s so important on so many different levels...not only the level of what’s going to happen now and that the tariffs have been declared illegal, but also for the integrity, I think, of the Supreme Court.” —June Grasso, 24:52

6. Political & Electoral Ramifications

• The ruling could embolden Trump adversaries in Congress and challenge his economic policy narrative.

  • "Americans hate the tariffs. They know their taxes, they know that they're driving inflation, and they don't like them." —Henrietta Trays, 17:57

• White House will struggle to recast its economic message ahead of the State of the Union and the midterms (22:03).

  • "That is A pretzel of some logic they're going to have to work through here because of course, the president has been saying that the tariffs have been a huge boon to the US Economy. None of that is true." —Henrietta Trays, 22:27

• Reporting per CNN: President Trump privately called the ruling a "disgrace" and claims to have a backup plan (23:44).

7. Legal Breakdown: Expert Take

• Dave Townsend (Trade Attorney):
  • Supreme Court ruled definitively IEEPA does not authorize tariffs (“full stop”).
  • Prior precedent under the Trading with the Enemies Act (TWIA) allowed some tariffs, but the Court drew a brighter line under IEEPA.
  • Dissenters leaned on historic executive authority; majority held fast to statutory text.

Notable Quotes & Memorable Moments

• Tyler Kendall (White House Correspondent):

  • "We're still reading through this, but it appears that we have one at least. Dissenting opinion was from Kavanaugh, ... who says ... 'the process to be a mess, as was acknowledged at oral argument.'" (03:35)

• Paul Sweeney (Host, on market reaction):

  • "What's notable here...the best performing group among 24 groups is a consumer durable and apparels group, Lululemon...along with other companies presumably hurt by this, by these tariffs, would benefit therefore with the removal of these tariffs..." (04:28)

• Henrietta Trays (Vetta Partners):

  • “This is just a tremendous day, a huge win for the Constitution for folks who cover tax policy." (16:48)
  • "Now that that authority has been stripped away from him, the president no longer has to collect these taxes. It’s up to him to decide whether he wants to migrate into new and different authorities, ... but the American public will be very grateful that the Supreme Court struck these tariffs down and even more grateful if he keeps them off." (17:57)

• June Grasso (Bloomberg Law):

  • "Whatever there's a big opinion that [Chief Justice Roberts is] in the center, he writes it...so when we heard what he said in the oral arguments, it was pretty obvious what was going to happen." (11:45)

• Dave Townsend (Trade Attorney):

  • "The basic premise of the opinion is that the IEPA statute...doesn't extend to imposing tariffs. And so as a matter of statutory interpretation, the president exceeded the authority in issuing the global and fentanyl related tariffs." (26:16)

Timestamps for Important Segments

• [02:20–04:28]: Details and immediate analysis of the Supreme Court's decision (Tyler Kendall)
• [05:02–06:46]: Market impact, complexity of tariff refunds
• [07:17–09:02]: Discussion of alternative tariff authorities and procedural hurdles
• [09:54–12:33]: Legal perspectives—nature of the majority opinion and what the vote implies (June Grasso)
• [14:28–16:16]: Historic legal context—comparison to earlier Supreme Court interventions in economic policy
• [16:16–19:29]: Macro and policy perspective—constitutional implications, market expectations (Henrietta Trays)
• [19:29–23:35]: Practical consequences for importers, confusion over trade deals, post-ruling uncertainty
• [23:44–24:52]: Trump's immediate reaction and political/electoral implications
• [26:01–28:55]: Legal technicals—authority, dissent, and future scenarios (Dave Townsend)

Flow and Tone

The conversation is brisk, analytical, and urgent—true to a real-time breaking news discussion. Hosts and guests blend deep policy/legal analysis with market context, openly acknowledging ongoing uncertainties, the historic nature of events, and practical consequences for businesses, politics, and future presidential powers.

Bottom Line

The US Supreme Court's landmark 6-3 ruling striking down President Trump's global tariffs marks a turning point in US economic and constitutional policy. The ruling rebukes unprecedented executive use of emergency powers for trade policy, throws tariff refunds into legal limbo, triggers immediate market relief in some sectors, creates budget and political headaches for the White House, and resets the balance between the legislative and executive branches on trade.