Fallout from the Supreme Court's tariff decision
Marketplace All-in-One
Marketplace
4.5 • 1.4K Ratings
🗓️ 23 February 2026
⏱️ 7 minutes
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Summary
On Friday, the Supreme Court struck down President Trump’s sweeping “retaliatory” tariffs, ruling that he doesn’t have the authority to impose them under the International Emergency Economic Powers Act. Many of the administration’s tariffs, however, remain intact, and President Trump has announced a new 15% global tariff following the decision. We discuss what that means companies, consumers, and the U.S.’s global trading partners. Plus, new analysis from the Cato Institute finds that the presence of immigrants helps to ease the federal budget deficit.
Transcript
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| 0:00.0 | A new data-driven analysis finds immigrants are a net positive for the U.S. Treasury. |
| 0:07.6 | I'm David Brancaccio in Los Angeles. First, we're coming up on 72 hours since the Supreme Court determined the Trump administration did not have legal authority for a sweeping package of tariffs. |
| 0:18.9 | These were the ones imposed unilaterally and globally using the |
| 0:22.1 | International Emergency Economic Powers Act, or AEPA. But this ruling does not apply to all import |
| 0:28.6 | taxes. And the president at first said he'll now apply a 10% global tariff, then raised his number |
| 0:33.6 | to 15%. Here's Marketplace's Mitchell Hartman. Even though the administration's biggest bucket of import taxes has been thrown out, |
| 0:41.9 | Michael Strain at the American Enterprise Institute says, |
| 0:45.1 | There are other laws under which President Trump has tariffs. |
| 0:49.3 | Section 301 of the Trade Act of 1974 allows tariffs in response to unfair trade practices still in place against China. |
| 0:58.3 | And Section 232 of the Trade Expansion Act of 1962. |
| 1:03.0 | Tariffs on goods with a national security justification really high on aluminum, car parts, steel, copper, lumber. |
| 1:13.9 | And says Robert McClelland at the Urban Brookings Tax Policy Center, |
| 1:18.3 | there is still a number of active investigations on aircraft, industry machinery, |
| 1:22.4 | medical equipment, wind turbines, and drones. |
| 1:25.7 | Which could lead to additional tariffs. |
| 1:28.3 | Summing it all up, Martha Gimble at the Yale Budget Lab says, |
| 1:32.3 | Some of the tariffs that have been in the news a lot that President Trump has put in place |
| 1:37.2 | on a whim, for lack of a better phrasing, have been removed. |
| 1:40.7 | Which reduced the average effective tariff rate on foreign imports from around 16% |
| 1:46.4 | before the Supreme Court's decision down to 9%. But according to the Yale Budget Lab, |
| 1:52.7 | President Trump's new Section 122 tariffs ratchet that back up, at least for the next 150 days, |
| 1:59.8 | to 13.7%. I'm Mitchell Hartman for Marketplace. |
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