Squawk Pod: Blizzards & tariffs hit Washington - 02/23/26 | Audio Only
Speakers
Summary
- Supreme Court Overturns Tariffs: The Supreme Court ruled President Trump's IEEPA-based tariffs illegal. However, the administration immediately pivoted to Section 301 and 232 authorities to maintain a ~15% tariff rate (down slightly from 16% to 13.7%).
- Economic Uncertainty: Despite the ruling, "debilitating uncertainty" persists for businesses regarding supply chains and refunds ($175B in potential refunds is unlikely to be paid).
- Washington State Income Tax: A new proposal in Washington State seeks a 9.9% tax on income over $1M, threatening the tax-advantage status of the state home to Microsoft and Amazon.
- Severe Weather Event: A massive blizzard has grounded 90%+ of flights in NY and Boston, creating immediate short-term disruptions for travel and retail in the Northeast.
Trade Ideas
President Trump posted on Truth Social calling for Netflix to remove board member Susan Rice or "pay the consequences." While Ted Sarandos dismissed this as a "business matter," direct executive branch hostility toward a specific company creates headline risk and potential regulatory scrutiny (DOJ/antitrust) as retribution. Monitor for any actual regulatory action; currently a headline risk only. The market ignores the political noise entirely, as Sarandos suggests.
Washington State Senate passed a bill for a 9.9% tax on income over $1M. Senator Peterson argues this makes WA "much more like most of our peer states." The lack of state income tax was a primary moat for Washington-based mega-caps to attract executive talent. A 9.9% levy on top earners could trigger a talent drain to zero-tax states (TX/FL) or force these companies to significantly increase executive compensation to net the same pay. Watch for potential HQ relocations or executive churn if the bill becomes law. The bill may fail in the House or be struck down by state courts; Peterson claims business taxes are being lowered simultaneously to offset this.
Andrew Ross Sorkin
Co-Anchor, Squawk Box
A coastal winter storm has slammed the Northeast. "New York's LaGuardia airport has canceled 98% of its flights... Boston's Logan airport 92%." Massive flight cancellations in major hubs (NYC/Boston) result in immediate lost revenue, compensation costs, and operational chaos for carriers with heavy exposure to these hubs. Short-term negative catalyst for the airline sector due to Q1 earnings impact. The storm clears quickly (forecast says 40°F by Wednesday), leading to a rapid snap-back in travel demand.
Steve Liesman
Senior Economics Reporter
While the Supreme Court struck down IEEPA tariffs, the administration reimposed new tariffs immediately. Natasha Sarin notes the effective rate only dropped from 16% to 13.7%. Liesman reports businesses face "debilitating uncertainty" and likely won't get refunds on the $175B already paid. The legal victory is pyrrhic for importers. The cost basis remains elevated, and the regulatory environment is now "mercurial" and complex, making supply chain planning impossible. This compresses margins for retailers and industrials relying on imports. Avoid sectors with high import exposure until the Section 301/232 landscape stabilizes. Companies have already priced this in (Goldman notes 60-70% of prices already passed to consumers).
Up Next
This CNBC video, published February 23, 2026, features Andrew Ross Sorkin, Jamie Peterson, Steve Liesman discussing NFLX, MSFT, AMZN, SBUX, JETS, AAL, LUV, XRT, XLI. 4 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Andrew Ross Sorkin, Jamie Peterson, Steve Liesman · Tickers: NFLX, MSFT, AMZN, SBUX, JETS, AAL, LUV, XRT, XLI