The Rest Is Politics: US – Episode 160

"TRUMP’S TARIFFS RULED ILLEGAL"

Released: February 20, 2026
Hosts: Anthony Scaramucci (“The Mooch”) and Katty Kay

Overview

This emergency episode dives into a landmark Supreme Court decision that invalidates President Trump's sweeping tariffs—particularly those imposed under the guise of “national emergency.” Anthony Scaramucci and Katty Kay analyze the constitutional, economic, and political ramifications, discuss the reactions inside and outside the US, and respond to live audience questions. The tone is urgent yet hopeful, with both hosts framing the moment as a crucial test of America’s checks and balances.

Key Discussion Points & Insights

Supreme Court’s Ruling: Details and Implications

[00:45–03:32]

• The Supreme Court ruled 6-3 that President Trump’s use of emergency powers to impose major tariffs was unconstitutional.
  • “This is also a lot of the Chinese tariffs… Approximately $175 billion worth of tariffs have been invalidated.”
    — Scaramucci [00:56]
  • Justice Kavanaugh’s siding with the majority was surprising; the expectation was a less lopsided decision.
  • The ruling underscores that the powers of taxation (including tariffs) belong to Congress, not the president.

Landmark Decision on Presidential Emergency Powers

• The ruling asserts limits to the president’s authority during “national emergencies,” especially regarding economic measures.
• “The Supreme Court is saying to Congress: guys, you’ve been asleep at the wheel. This shouldn’t have to be up to us.”
  — Kay [03:32]

Context: Trump’s Use of National Emergencies

[03:32–06:41]

• Trump repeatedly invoked national emergency powers for executive actions—immigration, tariffs, even outlandish moves like attempting to buy Greenland.

  • Katty Kay: “This idea of a Unitarian presidency where he tries to grab as much power as he can… The premise of an emergency has been central to his overreach of power.” [04:04]

• The Court’s ruling checks this trend—though it's uncertain if this sets a precedent beyond tariffs.

• Scaramucci references the Youngstown Steel case, a historic Supreme Court ruling that set boundaries for the president’s emergency powers.

  • “This is the court telling you, back the F up. You don’t have this authority and you’re not a king.”
    — Scaramucci [07:14]

The Tariffs: Refunds, Chaos, and Wall Street Action

[08:19–12:20]

• Refunds: Businesses and individuals who paid the invalidated tariffs can now claim refunds from the US government.

  • “Whoever paid that tariff has the right to go to the IRS, go to the Department of Treasury and say… you owe that back to me.”
    — Scaramucci [09:47]
  • Third parties have purchased the rights to these refunds, often for pennies on the dollar, creating a secondary market.
  • The total refunds could reach $175 billion, putting further pressure on the US deficit.

• Katty Kay: “I don’t think those small businesses are suddenly going to get a whole load of refund checks.” [14:26]

• Trump already “spent” much of this money politically—via farm payments and promises—which worsens fiscal chaos.

  • “How many times can you spend this money?” — Kay [14:44]

Economic Effects and Political Fallout

[15:48–18:29]

• Short-term: Lifting tariffs could save US consumers $1,300–$1,700 each—a real benefit, especially for poorer Americans.
• On the deficit: The US can borrow this money if needed, but Wall Street will profit from arbitraging refunds.
• The Supreme Court’s action boosts global confidence in the US legal system and debt reliability.
  • “The system is holding against Trumpism. Can I say, I think that’s very important.”
    — Scaramucci [17:53]

International Perspective & Trade Relationships [18:29–20:55]

• Relief in the EU and other countries: US unpredictability on tariffs upended global trade; partners now hope for stability.
  • Kay: “You can hear a sigh of relief coming from many countries in the world, particularly from the European Union… They see a vindication.” [18:47]
• Lasting damage: Even if the tariffs go away, trade relationships and global trust in the US have been undermined.
  • “Other countries have already done big trade deals that they weren’t able to do before… All because of this Liberation Day.”
    — Kay [19:50]

Does the Ruling Mark the End of Trumpism?

[20:55–23:43]

• Scaramucci frames the decision as a clear setback for authoritarianism and for Trump’s personal power.
  • “He really has limited backup options… This is a big, big blow to him.”
    — Scaramucci [22:45]
• The ruling imposes legal constraints on how high and for how long tariffs can be independently imposed.
• However, both hosts caution that Trump’s “instinct is to fight,” and he may still pursue “roguish” action globally or look for loopholes.

Will the System Hold? Audience Poll & Legal Enforcement

[26:54–29:01]

• Live poll: “Do you think the system will ultimately hold against Trumpism?” 66% Yes / 34% No.
• Kay notes, referencing Sen. Coons, that state attorneys general have successfully challenged Trump’s executive power roughly 75% of the time:
  • “The system is holding, at this headline level from the Supreme Court, the system is holding.”
    — Kay [27:08]
• What if Trump ignores the ruling? Kay and Scaramucci agree that officials would go to jail for helping him flout the Court, and that public tolerance for executive overreach is exhausted.
  • Scaramucci: “The people around him will end up going to jail... The people have had enough.” [28:29]

Economic and Political Legacy of Trump's Tariffs

[23:46–25:21]

• Trump’s justification has always been nostalgic—trying to revive US manufacturing by fiats like tariffs.
  • “The whole premise...was that he was going to recreate an America that manufactured T-shirts and shoes… and it hasn’t actually worked.”
    — Kay [24:04]
• Both hosts and economists consider the tariffs a failed, regressive policy that hurt manufacturing and consumers alike.

Notable Quotes & Moments

• Anthony Scaramucci:

  • “The age of Trump is ending. I just want to repeat that to everybody. The age of Trump is ending.” [02:09]
  • “This is a pounding. This is an ass kicking by the Supreme Court of the executive branch.” [11:21]
  • “Trump was driving around in a Ferrari Caddy, but it turns out it’s just a golf cart. That’s the irony of the whole thing.” [29:34]

• Katty Kay:

  • “Congress needs to reassert itself. There are three branches of government, and one of those branches has been kind of AWOL for the last year.” [03:32]
  • “Even his own judges wouldn’t bail him out on this. And so, you know, that’s the big thing.” [22:43]
  • “I have always believed that the American system will hold.” [26:54]

Timestamps for Important Segments

• 00:45–03:32 — Introduction to Supreme Court decision and its implications
• 03:32–06:41 — Trump’s record with emergency powers; limits set by the Court
• 08:19–12:20 — Tariff refunds, Wall Street’s role, and budget impacts
• 15:48–18:29 — Consumer impacts, US borrowing power, and international views
• 18:29–20:55 — Global repercussions and lasting trade damage
• 23:46–25:21 — Economic reality of Trump’s tariffs, myth vs. outcome
• 26:54–29:01 — Will the system hold? Audience poll, legal accountability
• 29:34–30:09 — Final thoughts: Presidency checked but grifting continues

Conclusion

This episode presents a pivotal moment of constitutional resilience, with Scaramucci and Kay dissecting the end of Trump’s unchecked tariff regime. While the ruling reasserts the separation of powers and restores optimism in the rule of law, both hosts caution that Trump’s political and economic influence remains dangerous. The overwhelming sentiment: the American system, though battered, is holding—proving the durability of its institutions, even in challenging times.

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