The Economics Show Trump’s tariffs are not dead yet, with Michael Froman
15 snips
Feb 23, 2026 
Michael Froman, former US Trade Representative and CFR president, explains why Trump can still reshape tariffs and which legal pathways he may use. He outlines who stands to gain or lose from tariff shifts. The conversation covers refund prospects, strategic use of Sections 301/122/232, and how trade tools may evolve under court limits.
AI Snips
Chapters
Transcript
Episode notes
Refunds From Invalidated Tariffs Are Likely Due
- The Supreme Court invalidated many IEPA tariffs but left refunds as settled law requiring reimbursement.
- Michael Froman explains precedent: erroneously collected tariffs are refundable, though procedures may vary by liquidation status and require petitioning or litigation.
Consumers Won't Get Direct Price Refunds
- Even if importers get refunds, consumer prices already raised by tariffs won't be mechanically returned.
- Froman notes firms stocked inventories and held prices flat, so refunds may simply reduce future price increases rather than reimburse consumers.
Section 122's Legal Fate Is Uncertain But Likely Deferential
- Section 122 of the Trade Act has never been used and invokes a 'balance of payments' justification, making legal challenges uncertain.
- Froman argues courts may defer to the president given the large U.S. trade and current account deficits.