Justin Wolfers: Court Curbs Trump's Tariffs--Markets Cheer - Justin Wolfers

[Rhiannon12866]

The Supreme Court has just ruled Trump's tariffs illegal. What next?

This clip explains the core implication of the court ruling: broad, across-the-board tariffs can’t be imposed unilaterally. The Constitution assigns taxing power to Congress, and the relevant emergency law doesn’t even mention tariffs.

The economic message from markets is striking. A positive market reaction suggests investors believe the tariff strategy was hurting American companies. That matters to households because the damage can show up not only in consumer prices, but also in corporate profitability—and the retirement accounts that hold those stocks.

Evidence suggests roughly 90–95% of tariff costs were borne in the United States. And the “countries pay tariffs” line is simply wrong: U.S. importers pay. Sometimes consumers see higher prices; other times companies absorb it through smaller profit margins, especially when uncertainty makes price hikes risky.

Politically, durable tariffs require durable support. The public has not been brought along, and that makes it harder to pass a tariff law—even with a friendly Congress. Meanwhile, only narrower, process-heavy tools remain: targeted tariffs tied to specific conditions like national security, plus limited emergency authority.

If tariffs are such a great idea, why not ask Congress?

Stakes: When trade policy is run through chaos and uncertainty, your paycheck, your prices, and your portfolio can all feel it. - 02/20/2026.

Topics covered:
What the ruling says about Congress and tariff authority
Why the Emergency Powers Act isn’t a tariff blank check
Why markets see tariff limits as good news
Who pays tariffs in practice
The 90–95% estimate and what it means
Prices vs. profit margins as transmission channels
How uncertainty affects investment and supply chains
Whether refunds for past tariffs are possible
Why public opinion constrains trade policy
What tariff tools remain on the table

Contents:
0:00 Initial reaction and the legal core
1:20 “Trillions” and political reality
2:40 Who pays tariffs—and refunds?
4:05 How Americans bore the costs
5:25 Why your retirement account is exposed
6:30 The real failure: uncertainty
7:35 Can Congress pass new tariffs?

👉 Key takeaway: Tariffs aren’t magic—they’re taxes, and Americans have been paying most of the bill.