Trump dusts off obscure legal authority for new tariffs

Summary

Marketplace Morning Report

Episode: Trump dusts off obscure legal authority for new tariffs
Date: February 23, 2026
Host: David Brancaccio

---

Episode Overview

This Marketplace Morning Report episode dives into the latest developments in U.S. trade policy following a significant Supreme Court ruling that struck down most of the Trump administration's tariffs. Host David Brancaccio and reporters examine President Trump’s unprecedented move to use a rarely-invoked legal authority (Section 122) to impose new global tariffs. The episode also explores the market reactions, specifically gold prices, and includes analysis from economist Julia Coronado. In a global segment, the show reports on Spain's legal plan to grant status to half a million migrants, aimed at addressing workforce shortages in key sectors, featuring insights from restaurateur Mani Alam and reporting by the BBC’s Ashish Sharma.

---

Key Discussion Points & Insights

1. U.S. Supreme Court Strikes Down Tariffs & Trump's New Move

• [01:00] Supreme Court Action: Most Trump-era tariffs were invalidated by the U.S. Supreme Court, causing fresh uncertainty.
• [01:00–01:22] Trump’s Response: President Trump announces plans for a new 15% global tariff using Section 122 authority—the first time a president has invoked this temporary measure (can only last 150 days).
• [01:22–01:54] Details of Section 122:
  • Keeps higher levies in place for now, but effective tariff rate drops from 16% to 13.7%.
  • Treasury Secretary Scott Bessen: Administration may switch to other legal avenues for tariffs, which take longer.
  • Congress could be asked for more permanent tariff increases, but no sign of that yet.

Notable Quote

“The administration will likely impose other tariffs under more commonly used authorities, but those take longer to implement.”
— Nova Safa, [01:37]

• [02:01] Congressional Route: No current signs of the administration seeking Congressional support for permanent tariffs.

---

2. Market and Business Uncertainty

• [02:11] Carve-Outs Announced: Mexico and Canada exempted from new tariffs; their import tax situation remains unchanged.
• [02:11-02:55] Economic Uncertainty: Julia Coronado, economist and president of Macro Policy Perspectives, characterizes the economic climate as a "fog" returning.
• [02:35] Coronado points out that markets had anticipated clarity, but the new tariffs have reversed that optimism.

Notable Quotes

"Remember that the lifting of the fog was supposed to be a tailwind for the US Economy this year...and now we've kicked up all the dust all over again."
— Julia Coronado, [02:35]

“The market doesn’t quite know what to do with it. But it certainly is another risk factor to add to the list.”
— Julia Coronado, [02:48]

• [02:55-03:11] Gold as a Safe Haven: Gold prices have risen sharply in response to “policy chaos,” seen as a hedge in uncertain times.

"I think one of the reactions to policy chaos in the U.S. has been to seek safe havens."
— Julia Coronado, [02:58]

---

3. Practical Impacts: Customs and Refunds

• [03:11] Tariff Suspension: U.S. Customs will halt collections under the Emergency Economic Powers Act as of 12:01am Eastern on Tuesday.
• [03:28] Implementation Delays: New tariffs will take days to impose; meanwhile, hundreds of billions in tariff refunds are pending, likely causing administrative delays.

“So lots of moving parts to this evolving trade strategy.”
— Julia Coronado, [03:44]

---

4. Spain’s Migrant Legalization Plan

• [05:11] Spanish Policy Shift: Spain’s Prime Minister plans to grant legal status to around 500,000 undocumented migrants to bolster expanding economic sectors facing worker shortages (tourism, hospitality, construction).
• [05:29–06:09] Labor Market Realities: Many Spaniards shun these jobs due to low wages and temporary contracts; Spain’s aging and shrinking workforce is partly to blame.
• [06:09–06:35] Restaurateur’s Experience: Mani Alam, co-owner of 22 restaurants in Spain, highlights administrative barriers to hiring undocumented workers—even when they have relevant skills.
• [06:35–07:12] Bureaucratic Hurdles: Legal process for migrants to get work papers can take up to six months, making survival difficult for undocumented workers.

Notable Quotes

“A lot of times we have people with good experience with no papers. They come in the door with the CV and you have the interview. Everything...until the last part. And then they say, ‘I have no papers.’”
— Mani Alam, [06:35]

“To make [the] process easier, they get papers and start working in short time. For me, it’s easy.”
— Mani Alam, [07:29]

• [07:36–08:12] Political Opposition: Far-right Vox party claims legalization threatens Spanish identity; Partido Popular warns of broader EU impact. Many remain skeptical current bureaucracy will allow rapid regularization.

---

Timestamped Highlights

| Time | Segment | Key Takeaway | |-----------|----------------------------|------------------------------------------------------------| | 01:00 | Supreme Court Ruling | Most Trump-era tariffs invalidated | | 01:22 | Trump's Section 122 Move | 15% global tariff, first invocation of this authority | | 02:35 | Julia Coronado Interview | Market uncertainty resurges | | 02:55 | Gold Prices | Investors seek safe havens amid U.S. policy chaos | | 03:11 | Tariff Suspension | Customs to halt collections under prior legal basis | | 03:28 | Refund & Implementation Lag | Potential delays in new tariffs/refunds | | 05:11 | Spain Migrant Policy | Plan to legalize ~500k undocumented migrants | | 06:35 | Hiring Challenges | Barriers for migrants in Spanish labor market | | 07:36 | Political Reaction | Domestic pushback to legalization initiative |

---

Memorable Quotes

• Nova Safa: "The administration will likely impose other tariffs under more commonly used authorities, but those take longer to implement." [01:37]
• Julia Coronado: "Remember that the lifting of the fog was supposed to be a tailwind for the US Economy...and now we've kicked up all the dust all over again." [02:35]
• Julia Coronado: "I think one of the reactions to policy chaos in the US has been to seek safe havens." [02:58]
• Mani Alam: "A lot of times we have people with good experience with no papers...they say, ‘I have no papers.’ Obviously we can’t hire them because it’s illegal." [06:35]
• Mani Alam: "To make [the] process easier, they get papers and start working in short time. For me, it’s easy." [07:29]

---

Tone & Language

• The tone is measured, informative, and pragmatic, with an undercurrent of urgency around policy uncertainty and economic risk.
• Analyst Julia Coronado uses vivid metaphors ("the fog has rolled back in," "kicked up all the dust") to communicate market sentiment.
• Cultural and labor market insights in the Spain segment are candid and personal, with firsthand business experiences and political context.

---

This summary covers the major themes, news developments, expert analysis, and global context presented in the episode, providing a comprehensive guide for listeners and non-listeners alike.

Transcript

[Shopify Advertiser]

When it's time to scale your business, it's time for Shopify. Get everything you need to grow the way you want. Like all the way. Stack more sales with the best converting checkout on the planet. Track your cha chings from every channel right in one spot and turn real time reporting into big time opportunities. Take your business to a whole new level. Switch to Shopify. Start your free trial today.

[Odoo Advertiser]

Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? Introducing Odoo, the only business software you'll ever need. It's an all in one fully integrated platform that makes your work easier from CRM, Accounting, Inventory, e Commerce and more. And the best part? Odoo replaces multiple expensive platforms for a fraction of the cost. This is why over thousands of businesses have made the switch. So why not you try Odoo for [e-mail] that's o d o o.com There

[David Brancaccio]

is fresh uncertainty after the US Supreme Court struck down the lion's share of Trump administration tariffs. I'm David Brancaccio in Los Angeles. President Trump is moving to impose a 15% global tariff, now claiming legal authority that grants him power to do so for 150 days. And there are other tariff tools as well. Marketplaces. NovaSafo reports.

[Nova Safa]

The latest tariffs keep higher levies mostly in place for now, despite the Supreme Court's ruling the Yale budget lapse as the effective rate on the whole now averages 13.7%, down from 16%. The new tariffs are under a statutory authority known as section 122 that no president has previously invoked and they must be temporary. Treasury Secretary Scott Bessen told CNN State of the Union that the administration will likely impose other tariffs under more commonly used authorities, but those take longer to implement.

[David Brancaccio]

I think it's highly likely that those tariffs will rise up and that the 122s could disappear after five months.

[Nova Safa]

There's also the option of asking Congress to enact higher tariffs, but the administration has not signaled any willingness to do so. I'm Nova Safa for Marketplace.

[David Brancaccio]

The proposed new 15% global tariff talked about over the weekend does have carve outs, including for Mexico and Canada, so the import tax situations in those countries would be unchanged for businesses and markets. The fog has rolled back in the fog of uncertainty. Economist Julia Coronado is founder and president of Macro Policy Perspectives and a professor at the University of Texas, Austin.

[Julia Coronado]

Remember that the lifting of the fog was supposed to be a tailwind for the US Economy. This year that we'd made some deals and the dust was settling, and now we've kicked up all the dust all over again. So the market doesn't quite know what to do with it. But it certainly is another risk factor to add to the list.

[David Brancaccio]

Gold is up quite resolutely. That's a hedge.

[Julia Coronado]

Yes. I think one of the reactions to policy chaos in the US has been to seek safe havens. That's been a reliable trend, and that certainly seems to remain in place on this news.

[David Brancaccio]

Well, here's a note of certainty. U.S. customs and Border Protection says it'll halt collections of tariffs imposed under the Emergency Economic Powers Act, 12:01am Eastern on Tuesday. So they're halting collections. That's a tangible thing.

[Julia Coronado]

And it will take at least a few days to impose the new set of tariffs under the new guidelines and the new legal rationale. And then, of course, we have hundreds of billions of dollars in refunds to process, which is not likely to happen quickly. So lots of moving parts to this evolving trade strategy.

[David Brancaccio]

Economist Julia Coronado, Macro Policy Perspectives, thank you very much.

[Julia Coronado]

My pleasure.

[LifeLock Advertiser]

It's tax season, and at LifeLock, we know you're tired of numbers, but here's a big one you need to hear. Billions. That's the amount of money and refunds the IRS has flagged for possible identity fraud. Now here's another big number, 100 million. That's how many data points LifeLock monitors every second. If your identity is stolen, we'll fix it, guaranteed. One last big number. Save up to 40% your first year. Visit lifelock.com special offer for the threats you can't control, terms apply.

[QuickBooks Payroll Advertiser]

Running a business means every minute and every dollar counts. So why are you or your team working overtime juggling a maze of disconnected tools? So switch to intuit QuickBooks Payroll. It isn't just accounting. It's so much more. QuickBooks Payroll's powerful team management platform brings together HR, payroll, time tracking and finance all in one place, giving you control, confidence and freedom to scale your business while reclaiming nearly four hours a week. Learn [e-mail] payroll that's quickbooks.com payroll.

[David Brancaccio]

The Prime Minister of Spain has plans for his government to give legal status to about half a million migrants who are in Spain illegally is designed to boost the country's workforce in economic sectors that have been growing but have struggled to recruit workers. The BBC's Ashish Sharma reports from Madrid.

[Ashish Sharma]

The areas of strong growth have been in tourism, hospitality and construction. Yet these are the sectors in which many Spanish people are not so keen to work in due to lower wages and temporary contracts. In order to keep these engines of the economy roaring, Spain wants to utilize its migrant population. Another reason is that Spain has an aging population with one of the slowest birth rates in Europe.

[Mani Alam]

One day around 4am, he had the idea to eat fish and chips. He googled fish and chips in Barcelona.

[David Brancaccio]

There was none.

[Mani Alam]

So we said, okay, we need to open one. We are born in Pakistan, British ex colony. So we have fish and chips in, how do you say, childhood.

[Ashish Sharma]

From opening one restaurant 10 years ago. Mani and his brother Majid alam today run 22 restaurants in Barcelona and Madrid. They're mainly fish and chip shops with the food having an extra taste based on Pakistani spices they add. But they also run a Pakistani and an Indian restaurant. Being Spanish nationals, they have no problem setting up their restaurants. But Mani says it's a different story when it comes to hiring staff.

[Mani Alam]

There's more people who wants to work in hospitality. This is one of the first things to solve. A lot of times we have people with good experience with no papers. They come with in the door with the CV and you have the interview. Everything, everything goes good until the last part. And then they say, I have no papers. Obviously we can't hire them because it's illegal sometimes. No, we contract. No, we did like twice. No ferta de contrado like offer a

[Ashish Sharma]

contract to become legal first to take

[Mani Alam]

it have to come I legal and then you can hire them. It takes six months. So how people can survive six months in Madrid or Barcelona without any payment? Not really possible.

[Ashish Sharma]

What would be your message then to someone like Pedro Sanchez to make easier

[Mani Alam]

the process, they get papers and start working in short time. For me, it's easy.

[Ashish Sharma]

The Spanish government's legalization announcement has been criticized by its opponents. The far right Vox party says this is the beginning of the loss of Spain's cultural identity. The Partido Popola warns of the wider impact for the European Union. The process for legalization is set to begin in April. But given how burdensome Spain's bureaucracy has been so far for migrants and asylum seekers, many who are expected to benefit from this are understandably wary of just how quickly their status will be resolved.

[David Brancaccio]

Ashish Sharmaz with our newsroom partners, the BBC. It's the Marketplace morning report from APM American Public Media.

[LifeLock Advertiser]

Ready to make the most of your money? Sign up to receive weekly tips from

[Nova Safa]

Marketplace designed to help you make smarter financial decisions. Plus, you'll also be the first to know about exclusive Marketplace merchandise and local

[QuickBooks Payroll Advertiser]

events Text Marketplace to 80568 to sign up.