Bloomberg Surveillance Trump Tariff Defeat Throws Trade Deals Into Doubt
Feb 23, 2026
Eswar Prasad, Cornell trade expert and Brookings fellow, breaks down legal limits on presidential tariffs. Torsten Slok, Apollo’s chief economist, assesses market fallout and macro risks. Martha Gimbel, Yale Budget Lab co-founder, maps tariff forecasts and distributional effects. Janno Lieber, MTA CEO, recounts urgent transit tactics and storm-driven service challenges.
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Supreme Court Reasserts Limits On Presidential Tariffs
- The Supreme Court ruling reaffirmed separation of powers by limiting presidential tariff authority under IEEPA/Section 122.
- Eswar Prasad warned this constrains the administration's ability to impose broad tariffs and injects legal and policy uncertainty for partners.
Hold Off Renegotiations Until Tariff Dust Settles
- Wait before renegotiating trade deals because the U.S. tariff landscape is unsettled and exemptions may change outcomes.
- Eswar Prasad advises countries that worsened under broad tariffs should request renegotiation or seek exemptions rather than rush back.
Tariff Uncertainty Comes From Time Limit And Global Scope
- Section 122 tariffs are temporary (150 days) and apply globally, creating two uncertainty dimensions: duration and universality.
- Torsten Slok noted markets and negotiators now face unknown timing and which countries/products are covered.
