Economics in the News – Feb. 16-22, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o The Supreme Court ruled 6-3 that President Donald Trump’s tariffs are illegal. The Trump administration has been aggressive to implement tariffs to collect billions of dollars from companies importing foreign goods. The court rejected Trump’s claim that the 1977 International Economic Powers Act gave him power to impose widespread tariffs.
The court’s ruling didn’t dissuade Trump, as he signed a new order to impose a new 10 percent global tariff hours after the court’s decision. The Supreme Court didn’t rule if the government would have to issue refunds to some companies that have been paying tariffs. Stocks on Wall Street rose modestly following the court’s ruling and companies have already filed protective lawsuits seeking to preserve their ability to claim refunds from the government for tariffs they have already paid. [The Wall Street Journal]
o A large winter storm is causing havoc for airports in the Northeast, as nearly 6,000 flights canceled. At least 90 percent of the flights were canceled out of John F. Kennedy Airport in New York, Newark Liberty International Airport and Boston’s Logan International Airport. In addition, 98 percent of flights at LaGuardia Airport were canceled. More than 1,800 flights scheduled for Tuesday had been canceled, as of Monday afternoon.
The storm is much more concentrated to the Northeast, so airports and airlines could recover more quickly than they did from last month’s snowstorms that impacted a large part of the country. [The New York Times]
o Last year, the United States was the only major destination to see a decline in foreign visitors – even as tourism growing on a global scale. According to the World Travel and Tourism Council, the US saw a six percent decline last year in foreign visitors. Even more worrisome, that has continued to propel into the New Year, as visitors were down 4.8 percent in January compared to visits in January 2025.
Foreigners coming to the US are being faced with visa fees of $250 for nonimmigrant tourists and business visas designed to discourage visitors from overstaying. Tighter borders have also been a reason for visitors to stay away from the US, as they face rigorous vetting to enter. With the US set to host the World Cup this summer, millions of soccer fans are expected to visit the 11 hosting American cities for games. [The New York Times]
o Spring training is underway, as MLB clubs have started preparations for the upcoming season. Looming ahead, MLB may be headed for a lockout following the 2026 season, with the competitive balance of MLB falling into question after the back-to-back World Series Champion LA Dodgers continued to add to baseball’s largest payroll. Including paying MLB’s luxury tax, the Dodgers payroll for the upcoming season will be more than $550 million with $150 million levied as tax – more than the projected opening day roster of at least 12 teams.
That has led to many baseball analysts questioning the economics of baseball and whether the league needs to implement a salary cap. However, those who believe the Dodgers are good for baseball argue that baseball has long had a large disparity between the big spending teams and the small market teams – the New York Yankees in the 1990s come to mind. It also creates high expectations and high drama, including last October with a drama-filled World Series. [Bloomberg]
o Many Americans keep lamenting the price of food at the grocery store, so democrats are seeking new ideas to help drive down the cost of food. A prominent democrat-leaning think tank that cultivates policies that the party often adopts has proposed a two-year price freeze on 24 items, including strawberries and ground beef. Economists usually strongly oppose price controls because they lead to shortages.
Food prices continue to be a major talking point across America, with the cost of everyday food items increasing at a more rapid pace than wages. In a 2024 poll, 45 percent of Americans said that they would support direct involvement in negotiations between farmers and grocers, while 62 percent would support a law requiring food companies to drop prices when the cost of their materials falls. [The Washington Post]
