Trump forced to refund billions in tariffs – The Latest

In this episode of The Latest, host Lucy Hough speaks with Chris Michael, the international editor for The Guardian US, about the significant impact of tariffs imposed by Donald Trump. Despite Trump's claim that tariffs were his 'favourite word' and an effective tool for negotiating with other countries, a recent Supreme Court ruling declared many of these tariffs illegal. This ruling resulted in the return of $81 billion in tariff refunds, revealing the negative repercussions on American companies and consumers rather than the foreign entities Trump intended to target.

Initially, Trump's tariffs were portrayed as a way to rectify trade imbalances and bring manufacturing back to the U.S. This approach did not yield the intended results, as American manufacturing remains in decline. The tariffs also served as a geopolitical weapon; however, their effectiveness has come into question now that they have led to a considerable financial backlash at home.

The episode highlights that the Supreme Court ruling has not only affected Trump's ability to impose tariffs but also shielded him from potential electoral fallout by preventing price spikes from becoming even steeper. With the midterm elections approaching, both Republicans and Democrats recognize the negative economic impact of these tariffs, making it a precarious situation for Trump’s political future.