Bloomberg Businessweek EU Warns That Trump’s New Tariff Policy Breaks Trade Agreemet
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Feb 23, 2026 
Kathryn Judge, a constitutional law professor, explains the Supreme Court ruling curbing presidential tariff power. Ryan Vlastelica, an equities reporter, breaks down market reactions and AI-driven sector moves. Madison Muller, a health reporter, covers GLP-1 drug competition and pharma trial shakeups. They discuss legal limits, market volatility, and shifts in the obesity-treatment landscape in short, sharp segments.
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Watch Lower Court Refund Battles Next
- Expect litigation over refunds and collected tariff revenues in lower courts and the Court of Federal Claims.
- Judge advises watching federal claims cases as businesses and importers seek reimbursement of roughly $160 billion the government collected.
Tariff Reprieve Partially Offset By New Global Levy
- The Supreme Court ruling reduced average effective tariffs from ~17% to ~9%, but the administration's new Section 122 15% global tariff pushes averages back to ~13.5%.
- Greg Daco estimates GDP drag moves from 0.6% without IEPA tariffs to ~1.0% with the new Section 122 tariffs.
Lower Tariffs May Not Lower Consumer Prices
- Even if input costs fall from lower tariffs, businesses may keep compressed margins instead of passing savings to consumers.
- Daco warns reduced tariffs might not translate into consumer price relief because firms absorbed costs to avoid raising prices.