Harvard's Jason Furman: SCOTUS tariff ruling ends Trump's ability to arbitrarily adjust tariffs

• The Supreme Court ruling limits the President's ability to arbitrarily impose tariffs, particularly under Section 122, reinforcing the rule of law.
• Tariffs have largely failed to achieve objectives like increasing manufacturing jobs or lowering the trade deficit, instead raising prices and hurting exports.
• High market uncertainty, especially concerning AI's impact on jobs, can lead to significant market reactions to new information, despite an optimistic long-term outlook for AI's productivity benefits.

The discussion centers on the Supreme Court's ruling limiting President Trump's ability to impose arbitrary tariffs and its economic implications. Jason Furman, former CEA Chair, expresses pleasure with the ruling, highlighting the ineffectiveness of tariffs in creating jobs or reducing trade deficits, while acknowledging their revenue generation. He also touches on market volatility driven by AI uncertainty.