Podcast: Did economists move the Democrats to the right?

The Supreme Court’s decision striking down the administration’s sweeping global tariffs was one of the most consequential rulings of the year. In a 6–3 opinion, the Court held that the president had exceeded his authority by invoking the International Emergency Economic Powers Act to impose broad taxes on imported goods, a power the Constitution “very clearly” assigns to Congress.

The immediate effect of the ruling is likely to be felt by consumers, businesses, and the wider economy. For consumers, the decision could lower prices on a range of imported goods that had become more expensive under the tariffs. Businesses that rely on international supply chains may see reduced costs and greater predictability, making it easier to plan and invest. At the same time, industries that benefited from tariff protections could face increased competition from abroad. The broader economic impact includes potential adjustments in trade relationships and market stability, as well as the possibility that the government will need to refund billions of dollars in tariff revenue.