Squawk Pod Summary

Episode: State of the Union: Senators Cruz (R-TX) & Cantwell (D-WA)
Date: February 24, 2026
Hosts: Joe Kernan, Andrew Ross Sorkin
Guests: Senator Ted Cruz (R-TX), Senator Maria Cantwell (D-WA)

Overview

This episode of Squawk Pod focuses on the political and economic anticipation surrounding the President’s upcoming State of the Union Address. CNBC anchors Joe Kernan (reporting live from Capitol Hill) and Andrew Ross Sorkin are joined in back-to-back interviews by Senators Ted Cruz and Maria Cantwell, representing Republican and Democratic perspectives. The conversation covers U.S. trade policy and tariffs, the impact of recent Supreme Court decisions, U.S. foreign policy (particularly Iran), economic sentiment, the ongoing media industry bidding war for Warner Bros. Discovery, AI’s effect on jobs and markets, and concerns about the structure of the media landscape.

Key Discussion Points & Insights

1. Anticipation of the State of the Union (01:02 – 08:07)

• Hosts discuss:
  • Tonight’s State of the Union and the increased security around which Supreme Court justices, Democrats, and other officials may attend.
  • The recent market turmoil due to AI disruption and jitters in tech and financial sector stocks.
  • Paramount and Netflix’s intensifying bidding war over Warner Bros. Discovery, with speculation about the implications for Hollywood and streaming.

Joe Kernan (on market fears):
“We’re sleepwalking into this… every previous disruption always led to initial fears that were replaced by, by more jobs and more productivity. One of these times that may not be the case.” [03:44]

Andrew Sorkin (on AI impact):
“The blue collar job may be the most protected job, maybe more protected than the white collar job. It’s clear to me the white collar job goes first.” [04:40]

2. Senator Ted Cruz Interview

Trade, Tariffs & the Supreme Court Ruling (10:42 – 14:05)

• Cruz explains his evolving position on tariffs, acknowledging that while not a “tariff guy,” he believes President Trump has used them effectively as leverage in trade negotiations.
• On the Supreme Court decision limiting the President’s ability to unilaterally impose tariffs:
  • Cruz calls the decision “unfortunate” but ultimately of minor practical consequence, as other statutes still empower the President.
  • Predicts “a bunch of chaos and litigation” but limited impact on actual trade policy.

Ted Cruz:
“President Trump has changed my mind on one aspect, which is I think tariffs are an incredibly effective lever point for the president and he’s shown that in the last year… the threat of tariffs incentivizes [our trading partners] and it’s a really powerful tool.” [11:23]

“Donald J. Trump could go down as the greatest free trade president of modern times, which, which is not what one would expect.” [12:03]

“The Supreme Court decision I don’t think is going to have much consequence other than a bunch of chaos and litigation…” [13:00]

Iran Policy & Biden Administration (14:05 – 16:40)

• Cruz lauds the President’s “incredible” leadership on Iran, emphasizing the recent bombing of nuclear facilities as a historic move.
• Predicts possible regime change in Iran (and possibly Venezuela, Cuba) and calls for supporting protesters, arming them, and targeted strikes rather than boots on the ground.
• Adds that removing Iran’s ayatollahs would be the “biggest geopolitical shift since the fall of the Berlin Wall.”

Ted Cruz:
“What I’ve urged the President is, number one, support the protesters and arm the protesters. Let the people of Iran give them the ability to overthrow their government… I think there’s a real possibility of targeted strikes that are designed to support the Iranian people who are protesting.” [15:29]

Economic Performance & Public Sentiment (16:40 – 19:18)

• Discussion of the “disconnect” between positive economic indicators and lingering public malaise over affordability and inflation.
• Cruz credits the Trump administration for progress on inflation, tax cuts, border security, and crime reduction, but says “four years of Biden inflation” continues to weigh on the middle class.
• Highlights major provisions authored in the tax bill: federal school choice expansion and “Trump accounts” enabling children to invest for their futures.

Ted Cruz:
“Illegal border crossings are down 99%. Murder rates are down 20%. Drug overdose deaths are down 20%... I think the Trump tax cuts that we passed last year, many of them are going to go into full effect this year.” [17:41]

“School choice is going to unleash tens of billions of dollars of scholarships for kids all over America. Millions of kids are going to escape failing schools and have hope because of it. And the Trump accounts, you’re going to see literally trillions of dollars that our kids are going to be able to invest.” [18:30]

On FBI Director & Olympic Games (19:18 – 21:47)

• Addressing controversy over Cash Patel and FBI travel to the Olympics, Cruz defends Patel and celebrates the team’s gold medal win.

Ted Cruz:
“I think Cash [Patel] is doing a good job… the FBI has an important job protecting security there… It was awesome when Cash called President Trump, put him on the cell phone. The president congratulated that team. I hope they come tonight.” [20:13]

3. Senator Maria Cantwell Interview

The Media & Paywalls (24:09 – 27:37)

• Cantwell is deeply engaged in the evolving media landscape, especially the impact of paywalls on sports and local broadcasters:
  • Expresses concern over sports content going behind paywalls (Amazon, ESPN), hurting consumers and local journalism funding.
  • Advocates for a system where consumers access free, ad-supported content (“rent my eyeballs” model).
  • Emphasizes need for policy/guidance ensuring local broadcasters continue to receive sports content and support local news.

Maria Cantwell:
“We don’t want everything behind a paywall, and we certainly don’t want all the sports behind a paywall. The consumer is getting hammered on sports content constantly being put behind a paywall... I want to go back to the eyeball world where you rent my eyeballs. I watch a lot of advertising, but I get this free content.” [24:42]

“This is going to continue, right? This notion of are people just going to get more and more power and then put more and more content behind paywalls and then destroy the engine of what is local journalism? I’m going to fight against that.” [27:37]

Warner Bros. Discovery Bidding War & Political Dynamics (27:37 – 28:42)

• Cantwell critiques both presidential rhetoric and corporate consolidation:
  • Responds to concerns about Netflix/Paramount bids and political threats over board memberships (ref. Susan Rice).
  • Wants “real competition” in both content creation and media distribution; opposes political threats to deals, prefers competitive bidding.

Tariff Policy & Small Business Relief (28:42 – 31:40)

• Cantwell wants transparency on how tariff revenues will be used, particularly in providing relief to small businesses who may lack resources to litigate like large companies (Costco, FedEx).
• Wishes the President would seek Congressional input and focus on opening new markets, particularly for U.S. agriculture (e.g., “how to get soybeans into Asia or apples from our state”).
• Argues the first Trump administration’s trade moves made things “artificially more expensive for consumers,” and laments failure to recover lost export markets.

Maria Cantwell:
“In a dream world, I would love the President to say, I hear the courts and I’m going to go to Congress and I’m going to have a discussion with them about trade and about how to get markets open...” [29:51]

“We’ve never recovered — the US Markets never recovered the soybean market that was lost in the first Trump administration.” [31:40]

Economic Policy & Innovation (31:40 – 34:28)

• On party positioning, Cantwell says Democrats must make a stronger, more specific case for middle-class job growth in the “information age.”
• She discusses the “millionaires tax” in Washington State and concerns about competitive environments for tech giants like Amazon, Microsoft, and Starbucks.
• Supports dispersing innovation across the state (beyond Seattle), keeping Washington competitive, and attracting talent in light of tax policy debates.

Maria Cantwell:
“If we’re not really growing the middle class in America, how can we say that’s the American dream? And so we have to be more specific about how we think we’re going to grow those middle class jobs.” [32:11]

Closing Thoughts on Media & Information Competition (35:19 – 35:53)

• Cantwell emphasizes the crucial role of competition in the media to create “perfect information” and expresses desire to return to the show to discuss media issues further.
• Reveals herself to be a Pearl Jam fan, ending the interview on a lighter note.

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 11:23 | Ted Cruz | “President Trump has changed my mind… tariffs are an incredibly effective lever point for the president.” | | 13:00 | Ted Cruz | “The Supreme Court decision I don’t think is going to have much consequence other than a bunch of chaos and litigation…” | | 15:29 | Ted Cruz | “What I’ve urged the President is, number one, support the protesters and arm the protesters.” | | 17:41 | Ted Cruz | “Illegal border crossings are down 99%. Murder rates are down 20%..." | | 24:42 | Maria Cantwell | “We don’t want everything behind a paywall, and we certainly don’t want all the sports behind a paywall.” | | 27:37 | Maria Cantwell | “I’m going to fight against that [the destruction of local journalism].” | | 29:51 | Maria Cantwell | “In a dream world, I would love the President to say, I hear the courts and I’m going to go to Congress and…get markets open.” | | 32:11 | Maria Cantwell | “If we’re not really growing the middle class in America, how can we say that’s the American dream?” |

Timestamps of Important Segments

• 01:02 – 08:07: Show open, State of the Union expectations, AI market fears, and Warner Bros. Discovery bidding war.
• 10:42 – 21:47: Ted Cruz interview: tariffs, Supreme Court, Iran, economics, viral moments.
• 24:09 – 35:53: Maria Cantwell interview: media/paywall landscape, trade policy, small business relief, economic and state policy.

Tone & Style

The conversation throughout the episode is thoughtful, sometimes playful, often deeply analytical, with signature banter between Kernan and Sorkin. Interviews are frank, with Senators Cruz and Cantwell each giving direct answers informed by their partisan perspectives, but both stress the importance of bipartisan engagement on urgent issues like trade and economic opportunity.

Summary for Non-Listeners

This Squawk Pod episode offers a real-time pulse on Washington as the State of the Union approaches. You’ll hear candid takes from Senators Cruz and Cantwell on trade wars, the fate of tariffs after a Supreme Court shakeup, U.S. assertiveness abroad (notably Iran), and the economics of an election year. The conversation takes a sharp turn into the business of media with the ongoing Warner Bros. Discovery deal and broader questions about paywalls, local journalism, and competition in the “information age.” The episode captures the complex intersection of politics, economics, and media, placing listeners in the thick of Capitol Hill’s most timely debates.