Economist Podcasts – “When the levy brakes: Trump’s tariffs struck down”

Date: February 23, 2026
Host: Jason Palmer
Guests/Contributors: Rachna Shanbhog (Business Affairs Editor), Aaron Connolly (Asia Diplomatic Editor), John Vasman (Culture Correspondent)

Episode Overview

This episode of The Intelligence from The Economist explores three big topics:

1. The US Supreme Court’s decision striking down Donald Trump’s signature tariff policy: The episode unpacks the court’s reasoning, Trump’s response, the immediate economic fallout, and the new legal and political strategies at play.
2. Political turmoil in Australia: The rapid rise of the populist One Nation party disrupts the country’s longstanding conservative coalition, with implications for national politics and party identities.
3. The enduring appeal of Agatha Christie: A reflection on why Christie remains the world's best-selling novelist despite persistent critical snubs.

The tone is brisk, insightful, and clear, focusing on global political and economic consequences, as well as cultural trends.

1. America’s Tariff Turmoil: The Supreme Court Strikes Down Trump’s Policy

Main Theme

The US Supreme Court decisively ended Donald Trump’s aggressive tariff regime, citing constitutional limits. The ruling invalidates tariffs imposed under the International Emergency Economic Powers Act (IEEPA), affirming Congressional authority in peacetime trade matters. The administration, undeterred, scrambles for new legal means to keep tariffs high.

Key Discussion Points & Insights

• Supreme Court’s Ruling:
  • Six justices, including three conservatives, ruled against Trump’s use of IEEPA for unilateral tariffs.
  • Tariff power in peacetime remains with Congress, not the President.
    • “The peacetime power to set taxes lies with Congress.” (Jason Palmer, 01:28)
• Immediate Economic Impact:
  • Effective US tariff rates are projected to drop by half.
    • "Estimates suggest that the ruling would lower America's effective tariff rate by about half." (Rachna Shanbhog, 03:01)
• Trump’s Reaction:
  • Publicly denounced the court, accusing justices of betraying national interests and succumbing to foreign influence.
    • “I’m ashamed of certain members of the court, absolutely ashamed for not having the courage to do what’s right for our country.” (Aaron Connolly reading Trump statement, 03:37)
    • “Foreign interests are represented by people that I believe have undue influence.” (Aaron Connolly, 03:50)
  • Introduced a blanket 10% global tariff, quickly raised to 15%, exploiting Section 122 of the Trade Act of 1974.
    • “He also announced a temporary global tariff of 10%... which then the next day he increased to 15%.” (Rachna Shanbhog, 03:59)
• Legal Challenges Ahead:
  • Section 122 allows tariffs for up to 150 days, intended for emergency situations involving “fundamental international payment problems.”
  • The White House claims America faces a severe payments deficit—a debatable assertion likely to be litigated.
  • Alternative legal pathways:
    • Section 232 (national security tariffs)
    • Section 301 (addressing discrimination against US trade)
      Both take time and offer less Presidential flexibility.
• Congressional Gridlock:
  • New tariffs could legally be approved by Congress, but midterm anxieties and voter anger over prices make this unlikely.

Notable Quotes & Moments

• “There’s another option... which would be to go through Congress and get tariffs approved... but it’s really hard to see that happening. Lawmakers have slim majorities. There are midterms coming up. They don’t want to be open to accusations of raising the cost of goods when voters are already very worried about affordability.”
  — Rachna Shanbhog (04:14)
• “What seems to be the case is that some countries that had quite high tariff rates are going to benefit in this new temporary regime... But there are some countries that are going to be losing in this Section 122 world, and that includes Britain.”
  — Rachna Shanbhog (07:12–08:15)

Economic Fallout & Global Consequences

• Global Confusion:
  • Bilateral trade deal partners—like the EU and India—delay ratifying agreements; some countries (China, Brazil, India, Southeast Asia, Canada, Mexico) benefit, others lose out.
  • Countries that negotiated deals early (e.g., Britain) may now face higher tariffs.
• $100 Billion Refund Headache:
  • Companies that paid invalidated tariffs expect refunds—but paperwork, logistics, and timing are unclear.
  • Quick refunds could act as unexpected stimulus before midterms, ironically aiding Trump.
    • “It might actually help juice the economy ahead of the midterm elections, and that could actually benefit Donald Trump.” (Rachna Shanbhog, 09:10)

Legal and Political Ramifications

• Supreme Court–White House Tension:
  • The ruling signals a more confrontational court; next flashpoint: the planned firing of Lisa Cook (Fed Governor), a case testing central bank independence.
• Persistent Uncertainty:
  • "There's still uncertainty for businesses here because the precise winners and losers after the ruling will change... Uncertainty over tariffs has already been a drag for them... and that's just going to continue." (Rachna Shanbhog, 06:32)

2. Australian Politics: The Populist Right Upends the Old Order

Main Theme

Australia’s conservative establishment is in crisis as the populist “One Nation” party eclipses the traditional coalition, exposing deep rifts and threatening the country's preferred political balance.

Key Discussion Points & Insights

• Collapse of Conservative Unity:
  • For decades, power alternated between Labor and the Liberal–National coalition. The Liberals (urban, centrist) and Nationals (rural, culturally conservative) have worked together for two-thirds of postwar history.
  • Now, One Nation, led by Pauline Hanson, polls ahead of the Liberals.
    • “One Nation is now the most popular Conservative party in the country. It’s upending all of that gentle sloshing. The Liberals are in disarray." (Jason Palmer, 12:08)
• Political Fallout:
  • Liberals ousted their first female leader, Susan Lee, less than nine months into her tenure (Susan Lee quits politics, 12:28).
  • Angus Taylor, the new leader, admits, “The Liberal Party is in the worst position that it has been since it was founded in 1944. And that’s no hyperbole.” (Aaron Connolly quoting Taylor, 12:43)
• Disintegration of Right-Wing Vote:
  • One Nation draws rural voters from the Nationals; centrist urban ‘teal’ Independents, appealing with strong climate policies, take seats from the Liberals.
  • “One Nation really vies for the same rural voters that the National Party does. And right now, it’s just eating the National Party alive.” (Aaron Connolly, 14:13)
  • Seven of the Liberals’ “teal” urban seats, some previously held by Liberal prime ministers, now lost to climate-focused independents.
    • “Losing these seats was not just a shock to their identity, but it was also a real challenge to the electoral math.” (Aaron Connolly, 15:07)
  • Prospect: Right-wing splinters into irreconcilable blocs—Liberals, Teals, One Nation.
    • “So the prospect of a center right government coming to power in Australia over the next several elections is looking increasingly dim.” (Aaron Connolly, 18:49)
• Tensions on Immigration:
  • Taylor is pushing a shift to the right, especially on immigration, to stop defections but risks losing centrist urban support.
  • Some (Sen. James Patterson) believe “teal” seats can be won back without moving on climate or immigration.
  • Ex-PM Malcolm Turnbull warns, “You cannot out Hanson, Pauline Hanson.” (16:36)
  • “If you then say this is the big issue, people will say, oh—I’d rather vote for the real deal.” (Aaron Connolly paraphrasing, 16:40)

Notable Quotes & Memorable Moments

• “Australia, unlike some other democracies that are experiencing this shift to the populist right, can’t afford economically to shut down skilled immigration... or to dramatically reduce numbers in the ways some on the populist right are calling for.” (Aaron Connolly, 16:46)
• “One possibility is that after the election, the right in Parliament will be divided between One Nation, the Liberals and the Teals... The Liberals will not be able to form a government if they need to rely on both the Teals and One Nation who cannot work together.” (Aaron Connolly, 18:49)

3. Why Agatha Christie Still Rules the Globe (Despite the Critics)

Main Theme

Even as critics have long derided her technique and characters, Agatha Christie’s popularity and cultural impact remain undiminished fifty years after her death.

Key Discussion Points & Insights

• Critical Scorn:
  • Renowned critics labeled her “mawkish” and “banal,” with cardboard characters.
    • “…of a mawkishness and banality which seem to me literally impossible to read.” (Edmund Wilson quote via John Vasman, 19:51)
    • “...no more real than Cluedo figures.” (Julian Symons quote via John Vasman, 20:00)
• Christie’s Lasting Success – Three Factors:
  1. Unlikely Sleuths:
     • Jane Marple (elderly spinster), Lady Eileen Brent (“Bundle”), and of course Hercule Poirot—characters unlike traditional detectives captivate audiences.
     • “These unlikely sleuths see things and pursue leads that elude police officers... readers are accomplices in their detective’s independence and ingenuity.” (John Vasman, 20:55)
  2. Enclosed Settings:
     • Country houses, islands, the Orient Express—these “bounded settings” make every character a suspect and enable satisfying narrative closure.
     • “Christie’s smaller worlds really do feel put right when the curtain closes or the credits roll.” (John Vasman, 21:41)
  3. Brisk, Ingenious Plots:
     • Pace, clever twists, copious output: 66 novels, 150 short stories, 25 plays. Not every story is perfect, but the sheer volume cemented her mastery.
     • “She just worked really hard and became good at her job. No twist there.” (John Vasman, 22:40)

Timestamps for Major Segments

• Trump’s Tariffs Struck Down: 01:05 – 10:05
• Australian Populist Right on the Rise: 11:32 – 19:12
• Agatha Christie’s Enduring Power: 19:38 – 23:05

Notable Quotes (By Time & Speaker)

• "The peacetime power to set taxes lies with Congress." — Jason Palmer (01:28)
• "He also announced a temporary global tariff of 10% on all international trade coming into America, which then the next day he increased to 15%." — Rachna Shanbhog (03:59)
• "There’s still uncertainty for businesses here because the precise winners and losers after the ruling will change." — Rachna Shanbhog (06:32)
• "One Nation is now the most popular Conservative party in the country. It’s upending all of that gentle sloshing. The Liberals are in disarray." — Jason Palmer (12:08)
• "The Liberal Party is in the worst position that it has been since it was founded in 1944. And that’s no hyperbole." — Angus Taylor (via Aaron Connolly, 12:43)
• "You cannot out Hanson, Pauline Hanson." — Malcolm Turnbull (quoted by Aaron Connolly, 16:36)
• "These unlikely sleuths see things and pursue leads that elude police officers... readers are accomplices in their detective’s independence and ingenuity." — John Vasman (20:55)
• "She just worked really hard and became good at her job. No twist there." — John Vasman (22:40)

In Summary

This episode deftly unpacks the consequences of the US Supreme Court’s intervention in trade politics, Australia’s seismic political shift to the populist right, and the mysterious longevity of Agatha Christie’s literary appeal. Through crisp analysis, thoughtful interviews, and signature Economist insight, listeners are guided through a world where rules are rewritten and old certainties upended—but where human ingenuity and narrative endurance remain constant.