Podcast Summary

Marketplace Morning Report

Episode: Supreme Court strikes down Trump's tariffs
Date: February 20, 2026
Host: David Brancaccio

Episode Overview

In this edition of the Marketplace Morning Report, host David Brancaccio covers a week-defining Supreme Court decision that declared major Trump-era tariffs illegal, the economic consequences of this ruling, and what it may mean for future policy. The episode also touches on sluggish GDP growth, shifts in corporate diversity practices, and the growing presence—and challenges—of autonomous vehicles on American streets. Each segment provides informed analysis and expert voices, offering listeners a brisk but thorough update on today’s top business and economic headlines.

Key Discussion Points & Insights

1. Supreme Court Rules Against Trump-Era Tariffs

[01:00]

• Ruling Summary: The Supreme Court’s 6-3 decision found that President Trump’s tariffs did not meet the legal requirements under the International Emergency Economic Powers Act (IEEPA).

  • Many tariffs, especially those announced in April on “Liberation Day,” are rendered illegal.

• Consumer Impact: Tariffs raised prices for everyday Americans; a New York Fed report shows U.S. consumers and businesses pay almost 90% of the costs.

• Uncertain Refunds: Billions collected under the now-illegal tariffs may have to be refunded, a process described as potentially chaotic by Justice Brett Kavanaugh.

  • Notable Quote:
    “Refunds of billions of dollars would have significant consequences for the U.S. treasury, and the process would likely be a mess.”
    — Brett Kavanaugh, referenced by Nancy Marshall Genzer ([01:29])

• Next Steps for Tariffs: Trump (or future presidents) still has some legal tools to reimpose tariffs, but some key strategies now require Congressional approval after a waiting period.

2. Economic Slowdown: Weak GDP Growth

[02:14]

• Report: U.S. GDP grew just 1.4% (annualized) in Q4 2025—less than half expectations.
• Reason:
  • The government shutdown during part of the quarter drove up spending without actual economic production.
  • Notable Quote:
    “There was a big increase in spending that did not translate into production.”
    — Christopher Lowe, FHN Financial ([02:46])

3. Corporate Diversity Initiatives Under Pressure

[03:15]

• Goldman Sachs: The investment giant is dropping its board-level diversity requirements amidst significant political pressure, especially from the Trump administration.

• Trends:

  • Some firms are rebranding DEI (Diversity, Equity & Inclusion) efforts as “belonging” or “inclusion” to avoid backlash.
  • Others quietly maintain or shift focus based on shareholder or political influence.

• Expert Insights:

  • Carlis Chatman (SMU): DEI rollbacks are often headline-driven, so actions matter more than statements.
  • Atinuque Adidiran (Fordham): Replacing DEI-related language is a common tactic.
  • Mae McDonnell (Wharton): Potential direct costs and fear of government retaliation keep companies and shareholders quiet.
    • “That threat...scares a lot of companies from being vocal and scares a lot of shareholders from being vocal in this space right now.” ([03:42])
  • John Solorzano (Vinson and Elkins): Firms face conflicting pressures—to avoid government targeting and to retain core customers.
    • “You're trying to avoid being kind of targeted by the federal government, but at the same time you're also not trying to be boycotted by your core customer base or consumer base.” ([04:58])

4. The Challenge of Regulating Autonomous Vehicles

[06:23]

• Scene Setter: David Brancaccio describes the surreal presence of driverless Waymo taxis—“There was an empty one creepily staring at me on my street…”—highlighting how quickly AVs are becoming part of city life.

• Key Issues:

  • AVs struggle with complex, unpredictable situations—e.g., Waymo cars “bricked” during a San Francisco power outage, unable to handle darkened intersections ([06:54]).
  • Jeffrey Tumlin (former San Francisco transit chief) cites AVs’ inability to recognize emergency scenes or construction dangers.
  • Federal AV regulations lag behind the technology; current bills aim to close gaps by standardizing safety requirements.
  • Notable Quote:
    “Without federal oversight, we risk a fragmented patchwork of state laws that could undermine safety, innovation and American competitiveness.”
    — Sen. Ted Cruz ([07:50])
  • Matthew Wood (May Mobility): Federal rules would enforce a uniform “safety case” for AVs, covering unexpected scenarios and failures.

• Big Picture Challenge:

  • Even as regulations evolve, cities are grappling with the immediate practical learning curve as self-driving vehicles expand.
  • Memorable Closing Line:
    “Human drivers kill over 40,000 people a year in the U.S. Whether federal regulation can reduce that toll without creating new risks is the question.”
    — Julia Picard ([08:54])

Notable Quotes & Memorable Moments

• On Tariff Refunds:
  “Refunds of billions of dollars would have significant consequences for the U.S. treasury, and the process would likely be a mess.”
  — Brett Kavanaugh, via Nancy Marshall Genzer ([01:29])

• On GDP and Government Shutdowns:
  “There was a big increase in spending that did not translate into production.”
  — Christopher Lowe ([02:46])

• On DEI Pressures:
  “You're trying to avoid being kind of targeted by the federal government, but at the same time you're also not trying to be boycotted by your core customer base or consumer base.”
  — John Solorzano ([04:58])

• On Federal vs. State AV Rules:
  “Without federal oversight, we risk a fragmented patchwork of state laws that could undermine safety, innovation and American competitiveness.”
  — Senator Ted Cruz ([07:50])

• On Human vs. AV Safety:
  “Human drivers kill over 40,000 people a year in the U.S. Whether federal regulation can reduce that toll without creating new risks is the question.”
  — Julia Picard ([08:54])

Timestamps for Major Segments

• Supreme Court Tariff Ruling: [01:00] – [02:14]
• GDP Growth Report: [02:14] – [03:15]
• DEI in Corporate America: [03:15] – [05:13]
• Autonomous Vehicle Regulation: [06:23] – [09:19]

Overall Tone & Takeaways

The episode smoothly delivers urgent national news with a balance of concise facts and thoughtful commentary. While the tone is brisk and anchored in analysis, David Brancaccio and Marketplace’s correspondents use memorable, relatable language and expert voices to keep listeners engaged and informed on events shaping the economic and regulatory landscape.

For more information or related stories, visit Marketplace.org.