18: Supreme Court Tariff Decision: What Comes Next for Trade, Markets, and Manufacturing

What happens to the economy when the U.S. Supreme Court overturns a major Trump administration tariff strategy? On Feb. 20, 2026, the Court struck down sweeping tariffs imposed under emergency authority, forcing a rapid policy shift and raising new questions about trade, markets, and the federal budget. In this episode of “Baker Briefing,” Ambassador David M. Satterfield is joined by John W. Diamond, director of the Baker Institute Center for Tax and Budget Policy, to break down the economic impact of the ruling. They discuss whether tariffs delivered on promises to boost manufacturing and generate revenue, how their removal could affect deficits and inflation, and why uncertainty — more than any single policy — may shape the outlook for businesses and global markets. The conversation also examines what tariff tools remain available to the administration and what comes next for U.S. trade policy. This conversation was recorded on Feb. 23, 2026.  Featured: Ambassador David M. Satterfield John W. Diamond, Ph.D. Mentioned in this episode: Learning Resources, Inc., et al. v. Trump, President of the United States, et al., U.S. Supreme Court, announced February 20, 2026. Listen and subscribe to “Baker Briefing” on Apple, Spotify, or your preferred podcast platform.   You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.