WSJ What’s News — PM Edition
Episode: Tariff Uncertainty Weighs on U.S. Stocks and Business Leaders
Date: February 23, 2026
Host: Alex Osola, The Wall Street Journal
Episode Overview
This episode delves into the sharp drop in U.S. stocks and the swirling uncertainty facing business leaders after President Trump’s renewed tariff proclamations despite a Supreme Court ruling that declared his earlier global tariffs illegal. The episode also touches on major developments in the weight loss drug market, allegations of Chinese AI firms siphoning knowledge from U.S.-made models, high-profile scandals in the UK, and ongoing geopolitical tensions around Iran.
Key Discussion Points & Insights
1. Market Turmoil and Tariff Uncertainty
Timestamps: [00:33]–[02:40], [03:38]–[06:06]
- Stock Market Reaction:
- Major U.S. indexes tumbled: Dow (-1.7%), Nasdaq (-1.1%), S&P (-1%). Declines were driven by leading financial stocks: American Express, Goldman Sachs, and JP Morgan.
- Hannah Aaron Lang (WSJ markets reporter) attributes market volatility to several factors:
- President Trump's repeated announcements about maintaining tariffs, confusing investors and company leaders.
- Ongoing Middle East conflict.
- A viral Substack post outlining a hypothetical future where AI triggers massive unemployment, rattling market participants.
“You've seen the President talking about finding new ways to impose tariffs... that introduced this source of volatility back into the market.”
— Hannah Aaron Lang [01:40]
- Tariffs and Global Repercussions:
- Supreme Court declared Trump’s earlier global tariffs illegal.
- Trump’s weekend response: Proposed new global tariffs (10% and 15%), amplifying global market jitters.
- EU lawmakers paused trade talks with the U.S. pending further clarity.
2. Business Leaders’ Dilemma: Caught Between Relief and Angst
Timestamps: [03:38]–[06:06]
- Executive Confusion and Legal Maze:
- Chip Cutter (WSJ workplace reporter) describes mixed feelings among CEOs—relief from the Supreme Court ruling but renewed confusion post-Trump announcements.
- Uncertainty about whether refunds on tariffs will be automatic, or require lengthy litigation.
- Many companies hesitate to discuss these issues, wary of antagonizing the Trump administration.
“They felt initially a jolt of relief... But President Trump’s announcements... left many executives struggling to understand: Where do we go from here?”
— Chip Cutter [03:38]
- Preparedness and Uneven Impact:
- Large corporations, especially multinationals, have adjusted with dedicated “war rooms” to simulate and strategize around shifting trade parameters.
- Smaller businesses—like Dariana Bridal and Tuxedo in Pennsylvania—feel overwhelmed, fearing mass consumer demands for tariff-related refunds.
“If you’re a small mom and pop business, this is all just really tricky and you’re throwing your hands up right now.”
— Chip Cutter [04:52]
3. Weight Loss Drug Market Shakeup
Timestamps: [06:13]–[07:05]
- Novo Nordisk vs. Eli Lilly:
- Novo Nordisk’s shares plummeted 16% after its next-gen obesity drug failed to outperform Eli Lilly’s Zepbound.
- Lilly shares climbed 4.8% on news of regulatory approval for a new multi-dose pen for Zepbound.
4. UK Scandal and Epstein Fallout
Timestamps: [07:35]–[08:36]
- Peter Mandelson Arrest:
- Former UK Ambassador to the U.S. arrested over alleged misconduct linked to the Jeffrey Epstein investigation.
- DOJ files indicate Mandelson shared confidential documents with Epstein and received $75,000 in wiring.
- Mandelson denies knowledge of the funds and investigation focus remains undisclosed.
5. Iran Tensions and U.S. Military Planning
Timestamps: [08:36]–[09:57]
- Pentagon Raising Alarms:
- General Dan Kaine, Chairman of the Joint Chiefs, has voiced concerns about an extended military campaign against Iran to President Trump.
- Debate within the National Security Council on strategy, with the White House emphasizing Trump “listens to others’ opinions before making a decision.”
- Trump publicly suggests any conflict with Iran would be “easily won.”
- Iranian civilians are bracing for possible violence, with reports of some making contingency plans for a U.S. strike.
6. U.S.-China AI Model Distillation Dispute
Timestamps: [09:57]–[12:19]
- Anthropic vs. Chinese AI Firms:
- Anthropic alleges three Chinese AI companies (Deepseek, Moonshot AI, Minimax) used 16+ million prompts to extract knowledge from its Claude model to rapidly train their own AI.
- Practice known as “distillation,” where one AI (the “student”) learns by querying another (the “teacher”).
“Claude acts like a teacher and the other model acts like a student... it’s kind of an end run around the very cumbersome and... expensive process of building a large language model.”
— Bob McMillan [09:57]
- National Security and Business Risks:
- Concerns that cloned models might lack important safety guardrails (preventing fraud, terrorism, criminal misuse).
- Distilled models can undercut U.S. firms on cost, threatening their business models.
“If you could clone a product that costs tens or hundreds of millions of dollars to make for a fraction of that, then you can sell it for a lot less...”
— Bob McMillan [11:15]
- Industry-wide Worries:
- Not an isolated issue; OpenAI has similarly accused DeepSeek of using the same “distillation” tactic.
Notable Quotes & Memorable Moments
-
On market volatility:
“You have other factors as well. There's concerns about conflict in the Middle East. And then another really interesting thing… a viral substack post… outlined what could be some really devastating consequences of artificial intelligence and that spooked investors.”
— Hannah Aaron Lang [01:40] -
On business leader uncertainty:
“Some companies realize they may need to file litigation to get [tariff refunds]... this will not be automatic and perhaps it's going to take longer than many companies might have expected.”
— Chip Cutter [03:38] -
On small businesses’ struggles:
“‘Oh my God, every customer on earth is going to demand a refund on their tariffs.’ And so you can see that fear among business owners right now.”
— Chip Cutter [05:40] -
On AI ‘distillation’ as a threat:
“Once we have the intelligence of Claude transferred onto another model, it's out of our control and it could be used for bad.”
— Bob McMillan [10:32]
Key Segment Timestamps
- Market Sell-off and Factors — [00:33]–[02:40]
- Tariffs and Business Impact — [03:38]–[06:06]
- Weight Loss Drug Market News — [06:13]–[07:05]
- UK Epstein Scandal Update — [07:35]–[08:36]
- U.S.–Iran Tension Coverage — [08:36]–[09:57]
- AI Distillation Controversy — [09:57]–[12:19]
This summary provides a detailed run-through of the episode’s content, focusing on the economic, political, and business ramifications of ongoing news stories while retaining the speakers’ tone and insights.