What the SCOTUS tariff decision means for the economy

In a 6-3 decision Friday morning, the Supreme Court ruled that the sweeping tariffs President Donald Trump enacted under the International Emergency Economic Powers Act, or IEEPA, would have to be thrown out — potentially leading to as much as $175 billion in tariff refunds, according to estimates from the Penn-Wharton Budget Model.

Yet there are still tariffs left on the books. The Budget Lab at Yale, which has been tracking the economic effects of the Trump administration’s tariffs, estimates that even without the IEEPA tariffs, the effective tariff rate on consumers remains at 9.1%. After last year, that remains the highest effective tariff rate on record since 1946.

“Marketplace” host Kai Ryssdal spoke with Martha Gimbel, the executive director of the Budget Lab at Yale, about what this means for the economy moving forward.

To listen to their conversation, use the media player above.