WSJ What’s News (Feb 20, 2026)

Trump Vows New 10% Tariffs After Supreme Court Loss

Episode Overview

This episode dives into two major stories driving business and politics:

• The U.S. Supreme Court’s landmark decision striking down President Trump’s sweeping global tariffs and his immediate vow to implement new 10% global tariffs via alternative legal avenues.
• The economic and political fallout, including reactions from markets, new economic data, and GOP infighting over Trump’s aggressive immigration policies.

The episode features insights from WSJ economic policy reporter Gavin Bade and political reporter Sabrina Rodriguez, and includes a candid interview with Rep. Maria Elvira Salazar (R-FL).

Key Discussion Points and Insights

1. Supreme Court Rules Global Tariffs Illegal

[00:33 – 05:18]

• The Supreme Court ruled (6-3) that Trump’s second-term global tariffs overstepped presidential power by lacking congressional authorization.
  • “The first time the Supreme Court has definitively struck down one of Trump's second term policies.” (Alex Osila, 00:59)
• Two Categories of Tariffs in the Case:
  1. Global tariffs to repair trade deficits.
  2. Targeted tariffs on Mexico, Canada, China (fentanyl-related).
• Tariffs on individual industries (steel, cars, copper) are unaffected and remain in place. (Gavin Bade, 01:54)
  • “Notably, Trump’s tariffs on individual industries... Those remain in place.” (Gavin Bade, 01:54)

Refunds Unresolved

• Over 1,000 companies have already filed for tariff refunds, but the Court did not address this, leaving the issue to be litigated, possibly for years.
  • "You’ll probably be in court for five years sorting this out... There's no easy resolution to the refunds issue, at least in the short term." (Gavin Bade, 02:17)

2. Trump’s Immediate Response: New Tariffs

[02:51 – 05:15]

• Trump swiftly announces new global tariffs “with a different legal basis.”
• Two-pronged approach:
  1. Section 122 Tariffs: Temporary (up to 150 days) 10% global tariff while longer-term tariffs are prepared.
  2. Section 301 Tariffs: More permanent, requiring an investigation and report. Used previously against China. These are considered “legally defensible.”
  • “Trump wants to do these things immediately. So he has this kind of one-two step: okay, we've got our temporary tariffs, and then we will come back and have the longer lasting ones later.” (Gavin Bade, 03:03)

Short-Term Business Impact

• For now, companies unlikely to change investment or shipping plans until the new regime is clarified.
  • “No one's going to make major investment decisions or even shipping decisions based on this. There’s still a lot of work to be done here and a lot of open questions as to how they’ll try to reconstitute this tariff regime.” (Gavin Bade, 04:20)

Key Quote: Limits on Power

• “Trump wanted to use these tariffs to exert his own personal authority over the entire global economy. Now, they have been pegged back. They have been told: that is not the case. You are not all powerful in the global economy. Actually, Congress didn’t give you this authority.” (Gavin Bade, 04:55)

3. Economic and Market Fallout

[05:20 – 07:33]

• Stock indexes volatile: rose after court ruling, dropped before Trump’s presser, recovered after new tariffs announced.
  • Nasdaq led gains, finishing +0.9%. (Alex Osila, 05:20)
• Commerce Department data: GDP growth slowed sharply to 1.4% (down from 4.4% prior quarter); inflation ticked up.
  • Fed’s favorite inflation metric (PCE) rose 0.4% in December.
  • “The data underscores why many Fed officials have turned cautious about supporting further interest rate cuts.” (Alex Osila, 06:09)

4. GOP Tension: Immigration and Political Risks

[07:34 – 11:55]

• Rep. Maria Elvira Salazar (R-FL), a Cuban American from a Hispanic district, criticizes implementation of Trump’s harsh deportation policies, warning it could alienate Hispanic voters and imperil GOP in midterms.
  • “She's seeing in her community and across the country the way that this administration is focusing on all people who are in the country illegally and not just people who, who have necessarily committed crimes.” (Sabrina Rodriguez, 09:13)

The ‘Dignity Act’ Proposal

• Salazar’s bipartisan bill offers legal status without citizenship to undocumented immigrants, with explicit conditions:
  • “You are not going to be American. I am not going to give you any federal programs. I am not going to allow you to use our health care system. You have to pay for your crimes. You have to pay a fine. You have to give me 1% of your salary. And then I'm going to give you the dignity status. It's not amnesty. It's dignity.” (Maria Elvira Salazar, 10:15)
• The bill hasn’t gained much traction but has bipartisan support and business group endorsements. Salazar believes White House support would sway Congress.

Salazar’s Warning on Voter Disillusionment

• “One out of two, 55% of Hispanic males voted for Trump. And now they're disillusioned because we cannot conflate the gangster with the gardener or the nanny with a narco or the construction worker with a coyote. You cannot do that. And unfortunately, that happened. So now we have to course correct and send the right message that the Hispanics are welcomed once again in the GOP.” (Maria Elvira Salazar, 11:09)
• Growing consensus among some Republicans for a middle ground, as demographic shifts threaten long-term GOP coalition.

5. Other International & Security Developments

[07:33 – 08:39]

• WSJ exclusive: Estimates that 20,000 people at large in Syria after mass escape from Al Hol camp (ISIS families).
  • U.S. officials and intelligence agencies warn about raised risks of next-generation militants in the wake of loss of U.S.-backed Syrian Democratic Forces’ control.

Notable Quotes & Memorable Moments

• Gavin Bade on Presidential Limits:
  “Trump wanted to use these tariffs to exert his own personal authority over the entire global economy. Now they have been pegged back... Actually, Congress didn’t give you this authority.” [04:55]
• Rep. Salazar on Dignity, Not Amnesty:
  “You are not going to be American. I am not going to give you any federal programs... It's not amnesty. It's dignity.” [10:15]
• Salazar on Hispanic Voters:
  “You cannot conflate the gangster with the gardener or the nanny with a narco or the construction worker with a coyote. You cannot do that... we have to course correct.” [11:09]

Important Timestamps

| Timestamp | Segment | |-----------|---------------------------------------------------------------| | 00:33 | Introduction to Supreme Court tariff decision | | 01:54 | Gavin Bade on which tariffs remain unaffected | | 02:17 | Gavin Bade on unresolved refunds | | 03:03 | Gavin Bade on new tariffs and legal basis | | 04:20 | Impact on businesses | | 04:55 | The real damage: presidential power limitations | | 05:20 | Market volatility and economic data | | 07:33 | WSJ exclusive: mass escape from Syrian ISIS camp | | 08:39 | Sabrina Rodriguez introduces Rep. Salazar’s background | | 09:13 | Salazar's critique of current deportation policies | | 10:15 | Salazar explains the “Dignity Act” | | 11:09 | Salazar on Hispanic Republican disillusionment |

Conclusion

This episode provides a clear, nuanced breakdown of a pivotal Supreme Court ruling on tariffs, President Trump’s immediate challenge to it, and the downstream effects for global markets and U.S. political coalitions—particularly among Latino voters. Via expert commentary and firsthand political voices, WSJ’s “What’s News” connects fast-moving headlines with deeper currents shaping business, policy, and society.