On Friday, February 20, the Supreme Court struck down a major portion of the tariffs enacted last year.

On Saturday, February 21, a new 15% “global” tariff on all countries was announced.

• What exactly happened?
• What does this mean for markets and the economy?
• What could happen next?

Providing clarity during uncertain moments is part of our commitment to simplifying the complex and helping you and your family make informed decisions with confidence. The following perspective is intended to break down the situation in a straightforward way.

What Happened?

After taking office last year, President Trump announced sweeping “reciprocal tariffs” — up to 50% on imports from certain countries and a baseline 10% tariff on imports from most other nations. These “Liberation Day” tariffs were not well-received on Wall Street and contributed to a sharp market correction. Many were later delayed or reduced, but the nation’s overall average tariff rate still reached approximately 13% by year-end — the highest level since before World War II.

People can reasonably disagree about whether tariffs represent good policy. However, at their core, tariffs function as a tax on imported goods and services. When U.S. businesses purchase products from overseas, that tax becomes an added cost alongside the purchase price. While some industries benefit from protection, others face higher expenses.

As a result, businesses and several states filed lawsuits challenging the legality of the tariffs, and those cases ultimately reached the Supreme Court.

The legal issue centered on the law used to impose the tariffs: the International Emergency Economic Powers Act (IEEPA). Passed in the 1970s, this law allows a president to declare a national emergency in response to unusual threats to national security, foreign policy, or the economy and grants certain authority over international commerce.

However:

• The IEEPA does not specifically mention tariffs.
• It had never previously been usedto impose tariffs.
• Tariffs are considered a form of taxation, and taxation authority belongs to Congress.

Because of these factors, the Supreme Court concluded that the President exceeded his authority. The Court stated that IEEPA’s authority to “regulate importation” does not include the power to impose taxes such as tariffs. As a result, all reciprocal tariffs enacted under that law were declared null and void.

The End of the Story?

The Court’s decision struck down tariffs implemented under IEEPA — but not all tariffs in general.

Several other laws allow presidents to impose tariffs through different procedures. Just one day after the ruling, a new 15% global tariff was announced under another legal authority. Some countries now have lower tariff rates than before, while others are higher.

What This Means for Markets and the Economy

Markets reacted negatively to major tariff announcements last year, and volatility returned following the recent developments. Additional tariff announcements are possible, so investors will continue monitoring policy changes closely.

However, there are reasons to expect a more muted long-term market reaction:

• Laws currently being used provide less flexibilitythan IEEPA.
• The new 15% tariff includes a 150-day expiration, after which Congress must decide whether to extend it.
• Other tariffs may take time to implement because they require formal government investigations.

Economic implications are more complex.

Potential positives:

• The Congressional Budget Office estimated tariff revenue could reduce the national deficit by approximately $3 trillion over ten years.
• Tariffs may have helped support negotiations with countries such as Japan, South Korea, India, and the United Kingdom.

Potential challenges:

• The U.S. goods trade deficit increased over the past year.
• Federal Reserve research suggests nearly 90% of tariff costs were borne by U.S. businesses and consumers.

If tariffs decline, the resulting effects on growth and inflation could ultimately be supportive for markets.

A Major Unknown: Possible Refunds

Another unresolved issue involves refunds.

Because tariffs imposed under IEEPA were ruled illegal, businesses that paid them may be entitled to reimbursement. The total potential refunds are estimated at approximately $175 billion.

That outcome would represent both a significant injection of money into the economy and a substantial impact on the federal deficit.

The Supreme Court did not decide this issue, so further court action is likely. Timing and outcomes remain uncertain.

What Comes Next

More tariff-related volatility is possible. However, one principle remains consistent: A thoughtful, long-term financial strategy remains the most effective tool in both favorable and challenging market environments.

Cornerstone Financial Solutions is built on client-first practices and extraordinary relationships, with the goal of helping families pursue what is truly possible for their lives and wealth. Examining economic developments, evaluating potential risks, and identifying opportunities are ongoing priorities — always anchored to each client’s personalized financial plan.

Short-term market movements can be uncomfortable, but history has shown that disciplined strategies and long-term perspective tend to be far more impactful than reacting to headlines.

Final Thoughts

Uncertainty often creates noise. Confidence comes from clarity, preparation, and partnership.

Helping simplify complex financial decisions and delivering lasting value — especially during changing conditions — remains central to our approach.

If you have questions, please reach out. Supporting your confident financial decisions is always our priority.

1. “ExecutiveOrder 14257,” Federal Register, https://public-inspection.federalregister.gov/2025-06063.pdf
2. “Whois Paying for the 2025 S. Tariffs?” Federal Reserve Bank of NY, libertystreeteconomics.newyorkfed.org/2026/02/who-is-paying-for-the-2025-u-s-tariffs/
3. “InternationalEmergency Economic Powers Act,” govinfo.gov/content/pkg/STATUTE-91/pdf/STATUTE-91-Pg1625.pdf
4. “LearningResources,  v. Trump,” U.S. Supreme Court, www.supremecourt.gov/opinions/25pdf/24-1287_4gcj.pdf
5. “Trumpsays US global tariff rate will rise from 10% to 15%,” Reuters, reuters.com/world/us/trump-says-he-will-raise-global-tariff-rate-10-15-2026-02-21/
6. “TheBudget and Economic Outlook: 2026 to 2036,” Congressional Budget Office, cbo.gov/publication/62105
7. U.S.International Trade in Goods and Services,” BEA, bea.gov/news/2026/us-international-trade-goods-and-services-december-and-annual-2025
8. “SupremeCourt ruling makes over $175 billion subject to refunds,” Reuters, reuters.com/world/us-tariff-revenue-risk-supreme-court-ruling-tops-175-billion-penn-wharton-2026-02-20/

CSP #1026335. Exp. 3.4.27.

Exploring your family’s history during the holidays.  

Holiday family traditions are about more than food. They’re the perfect time for connection, gratitude, and remembering those who came before us. As you gather around the table this season, take a moment to reflect on your shared story, and start the process of preserving it for the next generation.

Exploring your family’s history adds meaning to the holiday, deepening your appreciation for the people and experiences that shaped your life. Just as we pass down recipes or heirlooms, tracing your family tree and history helps keep your family’s values and memories alive.

Why Family History Belongs at the Holiday Table

Every family has a keeper of stories. The aunt or uncle who remembers who farmed where, who served in the war, or who made the famous cranberry salad. The holidays offer a natural opportunity to collect and share those memories while everyone is together.

Researching your family history is a way to honor the sacrifices, dreams, and determination of those who came before you. It can help younger generations feel rooted in their heritage and connected to something larger than themselves.

How to Begin Building Your Family Tree

1. Start With Yourself

Begin by recording your own story—birthplace, key life events, relationships, and traditions. Then expand to your parents, grandparents, and great-grandparents. You are the starting point of your family’s living history.

2. Begin at Home

Explore old albums, letters, or newspaper clippings that may hold forgotten details. Certificates, photos, and military records can reveal surprising connections and add depth to your story.

3. Ask the Experts—Your Relatives

Holiday gatherings are the perfect time to listen. Ask older family members what they remember about their parents or grandparents. Their firsthand stories often fill gaps that official records cannot.

4. Explore Public Records

When you’re ready to go further, visit federal, state, or county archives. Census records, property deeds, and marriage licenses can help trace your family’s journey across generations.

Turning Gratitude Into Legacy

Make storytelling part of your family’s holiday traditions. Write down memories, share old photos, or start a family tree together. By preserving your family’s history, you create a legacy of gratitude that lasts long after the dishes are cleared and the leftovers are gone.

CSP #926856. Exp. 10.31.26