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    Tariff confusion, Mexican cartel strike and Olympic gold

     
    TODAY’S GLOBAL TRADE story

    Trump’s tariff loss at Supreme Court roils trade

    What happened
    U.S. trading partners, businesses and the Trump administration spent the weekend planning next steps after the Supreme Court, in a 6-3 decision on Friday, ruled that President Donald Trump’s most sweeping tariffs were unlawful. The court said Trump did not have his claimed authority to unilaterally impose import taxes under the 1977 International Emergency Economic Powers Act (IEEPA). Trump said he would use a different law to temporarily impose a 10% global tariff, then bumped that up to 15% on Saturday. 

    Who said what
    White House officials are working to “project confidence that the legal setback” will not derail Trump’s “characteristic brinkmanship on trade,” The New York Times said. The administration insisted yesterday that its novel interpretations of the 1974 Trade Act will allow it to resurrect many of its “punishing tariffs,” but that show of confidence “contrasted starkly with the chaos and confusion bubbling up around the world” about U.S. trade policy. 

    Notably, the Supreme Court “left a $133 billion question unanswered: What’s going to happen to the money the government has already collected in import taxes now declared unlawful?” The Associated Press said. U.S. companies “have been lining up for refunds,” but trade lawyers suggested the administration won’t make that process easy. Business leaders are also “awash in a flood” of other questions, The Wall Street Journal said, including “how to proceed without ruffling the Trump administration” or “customers seeking price breaks?” 

    Trump is also “insisting” that the trade and investment deals he reached with “nearly 20 countries — most with higher tariffs” than his new 15% tax — “should remain untouched,” even after the Supreme Court struck down the “‘anytime, anywhere for any reason’ cudgel” he used to secure those deals, Reuters said. Those countries, mostly in Asia, “are now disadvantaged,” said Steven Okun, CEO of APAC Advisors, to the Times. In that predicament, “do you renegotiate and drive a harder bargain since Trump’s leverage is diminished? Or keep what you have to avoid retaliation?”

    What next?
    Until U.S. Customs and Border Protection updates its system, “U.S. importers are still paying duties on goods” under the unlawful IEEPA tariffs, CNBC said. “Consumers hoping for a refund are unlikely to be compensated for the higher prices they paid when companies passed along the cost of the tariffs,” the AP said.

     
     
    TODAY’S INTERNATIONAL story

    Mexico kills drug lord El Mencho, sparking chaos

    What happened
    Mexico’s military yesterday killed the country’s most-wanted drug kingpin, Nemesio “El Mencho” Oseguera Cervantes of the Jalisco New Generation Cartel, during an operation to capture him. The killing sparked a wave of retaliatory violence and arson attacks in Jalisco and other states across Mexico.

    Who said what
    Oseguera, 59, was wounded during his capture and died while being airlifted by helicopter to Mexico City, Mexico’s Defense Department said. The “forceful reaction” from his cartel left “at least 14 dead, including seven National Guard troops,” The Associated Press said. Guadalajara, Jalisco’s capital and a World Cup host city, “was turned into a ghost town” last night as civilians “hunkered down” amid burning vehicles and shops.

    President Claudia Sheinbaum “has criticized the ‘kingpin’ strategy of previous administrations that took out cartel leaders only to trigger explosions of violence as cartels fractured,” the AP said, but she has been “under tremendous pressure” from President Donald Trump to crack down on drug trafficking. Oseguera’s “power and control of the underworld rose after the U.S. pressured Mexico to crack down on the Sinaloa Cartel,” where he got his start before splitting off in 2009, The Wall Street Journal said. The “Sinaloans pioneered the manufacturing and smuggling of fentanyl,” and the Jalisco New Generation Cartel is now one of the top traffickers of that and other drugs to the U.S.

    What next?
    Oseguera’s death is a “major victory for the Mexican government and could help reduce pressure” from Trump, The New York Times said. But “criminal empires in Mexico have a track record of outlasting the authorities’ best efforts to weaken them,” and whether Oseguera’s cartel survives or splinters into a bloody power struggle may depend on whether its leaders “have established a clear line of succession.” 

     
     
    TODAY’S SPORTS Story

    Milan Cortina Olympics end with US men’s hockey gold

    What happened
    The 2026 Winter Olympics concluded in Italy yesterday with a closing ceremony in Verona’s 2,000-year-old Roman amphitheater. Verona is about halfway between Milan and Cortina d’Ampezzo, the two host cities for the Games, and people in the stadium watched via video link as the Olympic flames were extinguished in each city’s cauldron. In the final competition of the Games, the U.S. men’s hockey team beat Canada in overtime yesterday to win their first Olympic gold medal since 1980.

    Who said what
    “Thank you Italy, for these magical Games,” International Olympic Committee President Kirsty Coventry said, in Italian, at the closing ceremony. “You delivered a new kind of Winter Games and you set a very high standard for the future.” If the “opening ceremony emphasized the unprecedented spread-out nature of these Games,” The Athletic said, “the closing ceremony brought them back together.” It “opened with a whimsical tribute to Italian lyric opera,” and included aerial ballet, Italian rock and a DJ set, before ending with a light show, The Associated Press said. 

    Italy won its highest Winter Olympics medal count ever — 30, including 10 gold — putting it in third place behind Norway (41 medals, including 18 gold) and the U.S. (33 medals, including 12 gold). It was a “Winter Olympics to remember,” with “drama, thrills, moments of hilarity and plenty of gripping medal action,” CNN said. And the concluding “frenetic” men’s hockey final was “an instant classic.”

    What next?
    The Winter Olympic baton “now passes to the French Alps, which are expected to follow a similar blueprint of using multiple existing winter sports venues in 2030,” Reuters said. But first, the Milan Cortina Paralympics will begin March 6 with an opening ceremony in the same Verona Arena, and Los Angeles will host the 2028 Summer Olympics. 

     
     

    It’s not all bad

    The planting of 66 billion trees in a ring around China’s Taklamakan Desert has turned this harsh area into a carbon sink that pulls CO2 out of the atmosphere. When the project began in 1978, the plan was for the trees to keep sand from ruining adjacent grasslands. By the time the final trees were planted in 2024, the “Great Green Wall” had helped “raise average rainfall by several millimeters,” promoting foliage growth and “greater degrees” of carbon sequestration, said Good News Network.

     
     
    Under the radar

    The end of mass-market paperbacks

    For years, mass-market paperbacks have been credited with making books more accessible and affordable. The compact books could be found in places most people shop, like grocery stores, and were even responsible for the popularity of some authors, including horror icon Stephen King. However, a decline in sales and shifts toward other, more expensive books have led to what may be the end of the pocket-sized format.

    Mass market unit sales “plunged from 131 million in 2004 to 21 million in 2024, a drop of about 84%,” according to Circana BookScan, and sales through October 2025 were about 15 million units, said Publishers Weekly. Last year, ReaderLink, the country’s largest distributor of books to airports, pharmacies and big-box stores, announced that it would no longer carry mass-market paperbacks. The books can still be found in some places, but “as a format, I would say it’s pretty much over,” Ivan Held, the president of publishing imprints Putnam, Dutton and Berkley, said to The New York Times.

    It wasn’t publishers “leading the move away from mass markets,” said the Times. “It was readers.” They appear “more willing to buy books in larger, pricier formats.” 

    Industry insiders are mourning what they see as an end to accessible literature. Mass-market paperbacks “democratized America,” Esther Margolis, the publisher of Newmarket Books, said to Publishers Weekly. For the equivalent of a dollar or two, “you could be educated,” she told NPR. You could “pick them up at the school book fair” or at the local gas station. “You can’t really do that today.”

     
     
    On this day

    February 23, 1954

    Children at Arsenal Elementary School in Pittsburgh became the first to receive the new polio vaccine developed by Dr. Jonas Salk. The vaccine helped eliminate polio in the U.S. There are now concerns that the incurable disease could make a return amid vaccine skepticism from HHS Secretary Robert F. Kennedy Jr.

     
     
    TODAY’S newspaperS

    ‘Golden again’

    “Armed man shot, killed at Trump’s Mar-a-Lago,” the Austin American-Statesman says on Monday’s front page. “Man carried gas can, shotgun; Trump not at Florida compound,” the Chicago Tribune says. “Trump weighs a wider strike if Iran resists,” The New York Times says. “Russia, China offer ally Iran little help,” says The Wall Street Journal. “DHS pulls reversal, won’t suspend TSA PreCheck,” The Washington Post says. “A golden finish for Americans in Milan,” USA Today says. Hockey “fans get up early, party like its 1980” as the U.S men’s team is “golden again,” The Minnesota Star Tribune says. “L.A. now waits for the flame to return,” the Los Angeles Times says. “Emergency declared with blizzard to dump up to 2 feet” in Northeast, the New York Daily News says, but for kids, “no school, go sledding.” 

    ► See the newspaper front pages

     
     
    Tall tale

    Viral tile trial

    A mahjong cheating scandal that rocked a Florida retirement home is now a viral phenomenon on TikTok. Allison Novak posted several videos of her mother accusing fellow resident Barbara of breaking mahjong rules, like refusing to flip her tiles over to verify a win. “We’re not playing with the cheater anymore,” Novak’s mom said in one video, to the delight of millions of TikTok viewers keeping up with the scandal. Novak said she approached Barbara about appearing on video, but she declined.

     
     

    Morning Report was written and edited by Nadia Croes, Catherine Garcia, Scott Hocker, Anya Jaremko-Greenwold, Justin Klawans, Rafi Schwartz, Peter Weber and Kari Wilkin, with illustrations by Stephen Kelly and Julia Wytrazek.

    Image credits, from top: Peter W. Stevenson / The Washington Post via Getty Images; Ulises Ruiz / AFP via Getty Images; Stefano Rellandini / AFP via Getty Images; Lisa Stokes / Getty Images
     

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