Bloomberg Tech – Supreme Court Strikes Down Tariffs, West Virginia Sues Apple

Date: February 20, 2026
Hosts: Caroline Hyde, Ed Ludlow (with reporting and analysis by Matt Rogers, AnnMarie Horden, Scott Ladner, Carmen Reineke, Rich Greenfield, John McCuskey, Mike McKay, Michelle Guide, and guests)

Episode Overview

This episode centers on two major stories:

• The U.S. Supreme Court strikes down President Trump’s global IPA tariffs in a landmark 6-3 decision, potentially reshaping U.S. trade policy and its impact on technology and global markets.
• West Virginia sues Apple, alleging the tech giant allowed child sexual abuse material (CSAM) to be stored and distributed via iCloud, putting pressure on tech firms’ privacy and safety responsibilities.

The hosts provide in-depth analysis and live reaction to these developments, linking them to tech markets, company strategies, and broader economic and political implications.

Supreme Court Strikes Down IPA Tariffs (01:23–13:07, 27:07–32:59, 35:57–52:38)

The Decision and Its Immediate Impact

• Supreme Court ruled 6–3 that President Trump’s use of the International Emergency Economic Powers Act (IPA) to enact sweeping reciprocal and fentanyl-related tariffs exceeded his authority.
  • Matt Rogers: “The US Supreme Court has struck down President Donald Trump's sweep global tariffs in a 6 to 3 decision… the President has a backup plan and has labeled the decision a disgrace.” (01:23)
• Tech markets surged on the news—especially NASDAQ 100 and semiconductor stocks. Bonds and the dollar fell.
  • “Equity surge, particularly technology stocks, you look at Both the NASDAQ 100 and the Philadelphia Semiconductor Index. They've actually continued to push to session highs.” (01:49)
• Affected Tariffs:
  • April “Liberation Day” tariffs (10–50% on reciprocal/fentanyl-related goods, affecting Canada, Mexico, China) are voided.
  • Not affected: Section 232 (steel/aluminum), 301, and other authority-based tariffs.
    • AnnMarie Horden: “Not all the tariffs placed on China will evaporate… 232 and Section 301s are still being used.” (05:11)

What’s Next?

• White House has a “Plan B,” eyeing other tariff tools (e.g., Section 232, 301, 122, 338).
  • AnnMarie Horden: “Plan B includes also some of the sections we've already seen in the administration... Section 122 and 338—get used to hearing these names.” (02:28)
  • “IPA really was this blunt, flexible tool… now this… creates some potential hurdles.” (03:55)
• Legal Uncertainties:
  • Rebates/Refunds for duties paid under IPA tariffs will head to trade courts; many companies have begun legal action.
  • Brett Kavanaugh (in dissent): “This court does not outline how the rebates are going to go. And he actually said that probably is going to be a mess.” (02:28)

Notable Quote:

• AnnMarie Horden: “Supreme Court is just deciding whether or not IA but was legal… They are not the ones that are going to be deciding how the rebates go. A lot of retailers and companies line up at trade courts signing up to sue the administration…” (02:28)

Market and Company Reaction

Tech Outperformance & Growth Implications

• Markets saw meaningful gains, especially in Big Tech and chip makers:

  • Amazon, Etsy, Alphabet, Apple, Nvidia among top gainers (29:07)
  • “Technology in the moment right now is outperforming at the index level as reaction to this Supreme Court decision.” (06:40)

• Scott Ladner, CIO Horizon:

  • “The market had priced in... this was the most likely outcome... But now we have to understand, like, what is going to be Trump's reaction?” (07:50)
  • “It makes [Amazon’s and Etsy’s] operations a little bit more simple because… one policy tool that was really just at the whim of one individual person… has been taken away…” (09:49)
  • “If the market was convinced that this was the endgame, you’d see small caps and more cyclical stuff really sort of leading…” (07:50)

Budget and Economic Impact

• Yale Budget Lab Data:
  • Without these tariffs, average effective tariff falls to 9.1% (from 17%).
  • Long-term, this is a “tax cut”—positive for growth, negative for the deficit.
    • “Ultimately, this is a positive thing for US Growth. This is a positive thing for nominal GDP growth. It is a negative thing for the budget deficits…” (11:23, 11:54)

Global Political Context & Trade Diplomacy

• Presidential Visit to China Announced:
  • March 31–April 2, amidst peak tariff policy uncertainty. “How awkward… that the Supreme Court strikes down his IPA tariffs when he has been using that authority when it comes to China…” (05:11)
• EU Reaction: European Parliament’s trade committee to assess the ruling and its implications for US–EU trade. (12:15)
• Tech Diplomacy as a Tool:
  • Michelle Guide, CEO, Kraken Institute for Tech Diplomacy at Purdue:
    • “Trusted technology and the innovation coming out of the United States is… the most important tool that we have to revamp our economic relationships with our allies… We have tariffs as a tool and we have trusted innovation as a tool. And I think that's going to be the future of American diplomacy.” (33:27, 34:58)

Company Spotlight: Apple

• Apple stands to gain—paid $1.4–$3B in tariffs over the past year. (38:27)
  • AnnMarie Horden: “They recently spoke about this on the recent earnings call… Tim Cook… has to almost do both at the same time, make sure that he's showing China that he's committed to that market. But… diversify the manufacturing supply chain as we have seen…” (38:56)
• Tim Cook balancing US and China diplomacy, expanding production in Vietnam and India. (40:28)

West Virginia Sues Apple Over CSAM on iCloud (41:47–46:10)

• WV Attorney General John McCuskey discusses lawsuit alleging Apple knowingly allowed CSAM storage/distribution on iCloud, citing disparity in content removals compared to Meta and Google:

  • “Meta and Google provided to law enforcement somewhere in the neighborhood of 35 million CCM images... Apple removed 236.” (44:31)
  • The lawsuit seeks to force Apple and potentially others to more proactively detect and remove CSAM, arguing privacy should not shield criminal behavior.
  • “The balance needs to tip in favor of finding these child predators and removing these images from the Internet.” (42:54)

• Other states may join, and similar lawsuits could follow against other companies if appropriate. (45:34)

Warner Brothers–Paramount–Netflix Media Deal Drama (14:31–24:33)

• Netflix co-CEO Ted Sarandos discusses ongoing bid to acquire Warner Brothers Discovery, calling rival Skydance/Paramount’s bid “misinformation,” and defending Netflix’s alternative asset-focused approach:
  • “This deal is not complicated at all... It is the deal that they want. It is the deal that they asked for.” (15:25)
• Rich Greenfield (LightShed Partners):
  • Emphasizes Warner’s plan to split studio/streaming from linear TV, intangible value in the split, and speculates a knockout Paramount bid (>$36/share) would be required to win. (18:46–20:42)
    • “There’s a lot more value, sort of an intangible, but a real value to that split…” (18:46)
  • On Netflix and theatrical distribution vs. Warner’s assets: “Netflix is not in the theatrical distribution business… Movie theater attendance… is in a very, very dark, troubled place.” (21:14)

NASA Artemis II and Starliner Updates (24:33–27:07)

• NASA sets March 6th as target for Artemis II lunar mission launch; astronauts enter quarantine. (24:33)
• Boeing Starliner mishap recategorized as "type A"—same class as Challenger and Columbia disasters, due to major technical and organizational failures. (25:57)

Additional Highlights & Notable Quotes

Tech Sector Performance

• Carmen Reineke: “We’ve really seen enthusiasm flow back into some of those big hyperscalers… there also might be a sense that this decision might sort of lift or smooth out some supply chains from Asia. So that’s particularly important for those chip makers...” (29:07)

Economic Analysis

• Mike McKay, Bloomberg Economics: “The court said basically a tariff is a tax and that’s not a power granted by the IPA Act… There are other different methods the President could use that the court said are fine.” (47:40)
• “If you take it in isolation, it does lower the tariff rate. The Yale budget lab says it puts it down to about 9.1%. It was at 16%... imports would be cheaper. But that’s assuming the President doesn’t put on any more tariffs. We don’t know what the ultimate tariff rate is going to be.” (49:19)

White House and Political Response

• Kate Sullivan reports the President, caught off guard in a closed-door meeting, privately called the decision “a disgrace” and promised a backup plan. (51:01)
• “This will be something that is hanging over the State of the Union, something that the president will address.” (52:14)

Key Timestamps

• 01:23–06:40 – Supreme Court IPA ruling, market reaction, background, and initial reactions
• 07:46–12:15 – Scott Ladner on market/sector impact, economics of tariffs, and projections
• 12:45–14:31 – CES/Samsung/AI innovation segment, ad spots
• 14:31–24:33 – Warner Bros Discovery acquisition battle: Netflix vs. Skydance/Paramount, analyst perspective
• 24:33–27:07 – NASA Artemis II and Starliner mishap context
• 27:07–32:59 – Tech equity performance and deeper market analysis
• 35:57–52:38 – Extended analysis: Apple, West Virginia lawsuit, economic implications, legal and White House reaction

Conclusion

This pivotal Bloomberg Tech episode unpacks a seismic Supreme Court decision ending the President’s main tariff tool—reshaping US trade policy, the tech sector, and global diplomacy. It explores market reactions, corporate repercussions (with a focus on Apple), the future of US–China relations, and the complexity of large-scale tech acquisitions. The episode also dives into state action on tech privacy vs. child safety, and tracks space exploration milestones—delivering a comprehensive view of technology, politics, markets, and policy at a moment of inflection for the industry.

Memorable Quotes

• “The ruling is a screenshot in a very long movie about American economic transformation.” —Michelle Guide (32:03)
• “Meta and Google provided… 35 million CCM images… Apple removed 236.” —John McCuskey (44:31)
• “There’s a lot more value, sort of an intangible, but a real value to that split…” —Rich Greenfield (18:46)