Policy Reset
What has President Trump said this week?
〰️
What has President Trump said this week? 〰️
1. Supreme Court Strikes Down IEEPA Tariffs
The Supreme Court ruled 6–3 that President Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad, economy-wide tariffs, significantly limiting the use of emergency powers in trade policy. However, the Court did not resolve whether previously collected tariff revenue must be refunded. President Trump quickly pushed back, signaling he would rely on other “methods, practices, statutes and authorities” to maintain tariff pressure (CSIS, 2026; Bloomberg, 2026; The Washington Post, 2026).
According to PitchBook, the ruling has not eliminated uncertainty for private markets. Trump indicated he would invoke Section 122 of the 1974 Trade Act to impose a temporary 10% global tariff for 150 days, later saying it would rise to 15%. Responsibility for potential refunds now shifts to the US Court of International Trade, as companies seek clarity on how to recover part of the estimated $170 billion in duties collected since last year. A surge in refund claims could create significant bureaucracy and delays.
Tariffs are not necessarily gone, but their legal foundation has changed. Tariff volatility had already pushed US manufacturing and industrial private equity deal volumes to decade lows, disrupted cross-border strategies, and delayed IPOs. Continued legal maneuvering and policy shifts could further affect pricing power, supply chains, and exit timelines, particularly in import-heavy sectors (PitchBook, 2026).
2. State of the Union: Economic Claims Under Scrutiny
In his State of the Union address, President Trump described the U.S. economy as “roaring” and framed his agenda as a historic economic turnaround, while defending his approach to tariffs, trade, and household finances. Coverage emphasized that consumer affordability, domestic production, and trade enforcement were central themes, signaling that the administration intends to keep economic and trade policy closely aligned (Al Jazeera, 2026; Bloomberg, 2026).
Two economic themes received particular attention in post-speech reporting. While recent data show moderating inflation and continued growth, cost-of-living concerns remain prominent for many households. Inflation has eased to about 2.4% year over year (January 2026), down from 3.0% in January 2025, though price levels in some categories remain elevated (Al Jazeera, 2026; CNN, 2026). Recent data cited in broader coverage show GDP growth of approximately 2.2% in 2025, compared with 2.8% in 2024, and an unemployment rate around 4.3%, up from 4.0% a year earlier. Together, the figures reflect a macroeconomic environment that is stable but mixed, with easing inflation alongside softer growth and labor market moderation (CNN, 2026; The New York Times, 2026).
During the address, the president reaffirmed his commitment to tariffs despite the Supreme Court’s recent ruling, stating he would pursue “alternative” legal authorities to keep them in place. President Trump also highlighted stock market gains and lower gasoline prices as evidence of economic improvement, while outlining a limited set of legislative proposals, including codifying efforts to lower drug prices and advancing voter identification requirements. The speech underscored the administration’s intention to keep trade and economic policy at the forefront of its agenda (NPR, 2026).
3. Mexico Cartel Shock and World Cup Security Concerns
New reporting this week centered on a major cartel development in Mexico involving the capture and death of Nemesio Oseguera Cervantes (“El Mencho”), leader of the Cártel Jalisco Nueva Generación (CJNG). Security analysts note that removing a high-level cartel leader can weaken centralized command over time, but may also trigger short-term instability as rival factions compete for control (Wilson Center, 2026).
The security situation also carries economic and operational implications, particularly for tourism, cross-border trade, and business continuity. Coverage highlighted concerns about safety for U.S. visitors and the broader impact elevated violence could have on travel flows and logistics. This is especially relevant with FIFA World Cup matches scheduled in multiple Mexican cities, where security planning becomes part of the broader investment and operational landscape (CNN, 2026; PBS NewsHour, 2026).
During the State of the Union, President Trump referenced the operation, stating, “We’ve also taken down one of the most sinister cartel kingpins,” framing it as a cross-border cooperation. In Mexico, President Claudia Sheinbaum addressed public concerns around World Cup security, while FIFA President Gianni Infantino expressed confidence in Mexican authorities, stating: “We have complete confidence in Mexico, in its president, Claudia Sheinbaum, and in the authorities, and we are convinced that everything will go as smoothly as possible.” (CBS8, 2026; PBS NewsHour, 2026; USA Today, 2026)